Student Loan Consolidation Is Insurance Against Rising Interest Rates

Below, you'll find extensive information on leading Student Loan Consolidation articles and products to help you on your way to success.

Student Loan Consolidation Is Insurance Against Rising Interest Rates

In a recent article by Peter Svenssen, the Associated Press is projecting a possible student loan rate increase later this year of 1.2% for the 2005 - 2006 school year (July 1, 2005 - June 30, 2006) based on current US Treasury yields. Today's Stafford Loan repayment rate of 3.37% could increase to 4.57%, while PLUS Loan rates could increase from 4.17% to 5.37%. What does this mean for today's graduates? Over the span of a 10 year Stafford Loan repayment term on $18,900 in loans, a college graduate would pay $2,760.01 in interest at 2.77%, while that graduate would pay $4,062.40 in interest at 4%, a difference of $1,302.39, or about the price of a laptop computer. If graduates were to consolidate their federal student loans today, they'd be able to lock in today's rates before they change. Christopher Penn, associate director of StudentLoanConsolidator.com, urges graduates not to wait another minute to consolidate their student loans. A graduate with $18,900 would have a monthly payment of roughly $196.51 before consolidating at the projected 4.57% rate.

Mr. Penn said, "If you consolidate today, right now, right this minute, you would have a monthly payment of $129.39. Consolidating would save you $67.12 a month, or $805.44 a year. Could you use an extra $805 a year? I know I could. "What about students who are still in school? Mr. Penn said that some student loan consolidation companies can "reserve" an application for current students.

If students apply now and graduate before July 1, 2005, they can receive the current interest rates, but they must apply before July 1, and preferably sooner rather than later. "With no credit checks, no fees, and no early repayment penalties, there's absolutely no reason for graduates not to consolidate their loans. However, graduates need to act now," urges Mr. Penn. "Very often, graduates wait until the last minute to file their paperwork and by then, they may not be able to insulate themselves from a drastic rate change. The earlier you apply, the better off you will be, as you'll begin saving more each month immediately. "Students wishing to file a consolidation application should do so at http://www.StudentLoanConsolidator.com immediately. Contact Christopher Penn at StudentLoanConsolidator.com by email at e-mail protected from spam bots for more information; to apply for a student loan consolidation, graduates should visit http://www.StudentLoanConsolidator.com as soon as possible.StudentLoanConsolidator.com is a service of the Edvisors Network, a multi-national education services company offering students options for managing the entire education life cycle, from getting into their college of choice to financing their education and beyond.

We strive to provide only quality articles, so if there is a specific topic related to student loan that you would like us to cover, please contact us at any time. And again, thank you to those contributing daily to our Student Loan Consolidation Articles.

It Only Takes A Few Simple Steps To Avoid Student Loan Debt

Below, you'll find extensive information on leading Student Loan Debt articles and products to help you on your way to success.

It Only Takes A Few Simple Steps To Avoid Student Loan Debt

Student loan debt is a problem that affects many former students. It is a long and difficult process to pay off a student loan. Undoubtedly, it is much easier to avoid student loan debt in the first place. There are a few simple steps that can be taken to either escape student loan debt or ensure that the debt won't be too hard to pay off in the future. Consider student loans only after you have researched all the sources of free financial aid.

Many people who are eligible for financial don't even realize it and instead take out a student loan. If you are not eligible for financial aid and need to take out a student loan, be aware that there are three major types of student loans: Federal Family Education Loans, Federal Direct Loans, and Federal Perkins Loans. Make sure you don't go over your head in debt by deciding how much you can afford to borrow, and how much you can realistically repay. Ask for help if you have trouble paying off your Student Loan Debt. If you're having difficulty repaying your loans, don't be afraid to talk it over with your lender or loan servicer. Generally, the earlier you ask for help, the easier it is to get it. If you are having trouble remembering to pay your student loan, ask a bank for help and they should be able to set up an automated paying service, where you won't have to worry about writing a check.

Or, consider asking for student loan debt consolidation, which will combine all your federal loans into a single loan..

We strive to provide only quality articles, so if there is a specific topic related to student loan that you would like us to cover, please contact us at any time. And again, thank you to those contributing daily to our Student Loan Debt Articles.

Understanding a private student loan consolidation

Understanding a private student loan consolidation

A private student loan consolidation should not be confused with a federal consolidation. There are different terms and conditions that are involved in a private student loan that would create problems if they were to be consolidated with federal loans. Furthermore, federal consolidations have other benefits that would be null and void if they were consolidated with private loans. A private student loan consolidation is handled by a private company because there is no government backing the loan or the private student loan consolidation.

When you apply for a private student loan consolidation, you will first be given the terms and payment options to choose from. Depending on how much you owe, there are some options that will be better than others. Once you apply to work with a certain company through the process of getting a private student loan consolidation, they will look over all of the terms and decide what the best interest rates are for your student loans. By getting a private student loan consolidation, you can combine all of the debt in your student loans into one and average out all of the interest rates into one as well.

The benefits of a private student loan consolidation range from lower interest rates to fewer monthly payments each month. This helps you to manage your monthly budget better on a daily basis and can help you to plan around the monthly payment. When it comes to determining the loan terms, you can work one on one with the company to decide what options are the best for you. In addition, you can work with them to find ways to better manage your payments so that you do not miss any and can pay off your debt as quickly as possible. With a private student loan consolidation, you can lower your student loan debts the same way you can with federal consolidations.

Types of student loan consolidation

Types of student loan consolidation

If you can’t afford the costs of getting through collage, you will probably opt for a student loan. There are different types of loans that each student can take and some of them are really easy to manage for any student. In some cases, the expenses can be a little too high and students need to take another loan. With two or more student loans, students are obviously having a hard time. The only option to improve the situation is signing up for the student loan debt consolidation program.

With student loan debt consolidation, you can make only one payment monthly, instead of a payment for each loan. When you have more than one loan, you probably have more lenders too. With a consolidated loan, you will only have to pay off one lender. At first, your new lender will pay off all of your existing loans. After that, they will be consolidated into one. The loan will have a lower interest rate because it will be based on the average interest rate of your previous loans. This is one of the main reasons people consider student loan debt consolidation: it saves a lot of money with a lower interest rate.

When consolidating your loans, you will see that you have a number of options. Make sure you study each and every possibility and make the right choice. Some lenders can offer you discounts or advantages and you should be able to get a great deal. You should ask your lender if your student loan debt consolidation will be payable at a fix rate or not. In general, there are four types of student loan debt consolidation plans that you can chose from. These plans usually refer to the repayment part of the program. You can get a standard repayment plan. This plan will give you a fixed rate on your student loan debt consolidation. It also has a maximum life span of 10 years. This means that you will have to pay off the loan in 10 years or less. The period can be set when signing up for student loan debt consolidation. If you want to figure out how much you will pay monthly, you can go to a lender or simply divide the total amount of money that you want to receive with the time period of the loan, but remember to calculate it with the interest rate. Another option is the extended repayment plan. This is the longest repayment plan that you can get with student loan debt consolidation and the repayment process can last up to thirty years. This long period is the maximum and it usually depends on the amount that you borrow from the lender. The extended repayment plan has a fixed interest rate and you will probably end up paying more because of it. You should check this with your lender. The advantage of this student loan debt consolidation plan is that the monthly payments will be very low. If you know exactly how much you can afford to pay each month, you will be able to make a decision easier. The graduated repayment plan can also be extended to 30 years, but it doesn’t have a fixed monthly amount that needs to be paid. With this student loan debt consolidation program the amount that you pay each month will increase every two years. The last option is the income repayment plan. This student loan debt consolidation option can be extended to 25 years and it depends on many factors such as your income and the size of your family.

Tips for student loans consolidation

Tips for student loans consolidation

Many of us graduating or who had graduated from college carry a large financial burden in repaying our student loans. Add in other responsibilities such as rent, mortgage, car payments, maybe even a family, the weight can indeed be very heavy.

It's a good idea to examine options that could help relieve some of our financial burdens. In this article, it's about the student loans. More specifically, it's about private or federal student loan consolidation.

In order for colleges and universities to secure loans for a qualified student, they had to use several sources. One bank does not typically issue an entire 4-year loan or even a 1-year loan. Usually, it takes multiple funds from various lending institutions to get a student through his or her college career.

That is the reason why you're writing several checks a month to pay your student loans. Of course, these loans carry with it different interest rates and different billing cycles. They may also have different borrower’s benefits.

You don't have to be in a financial crisis in order to consider a private or government student loan consolidation. Sometimes, it's just smart money management.

STUDENT LOAN CONSOLIDATIONS ARE LOANS

First, let's understand that a student loan consolidation is a loan. You're getting one new loan that will pay off the multiple existing loans. Hence, at the end of the month, you get one bill instead of many. You pay one check, instead of writing a few. Consolidation can be very convenient.

THE GOOD

Besides the simplicity of a single check, there are other good reasons that you should consider. For example, when a student loan consolidation rate is lower than the average interest rate of your multiple loans, you may end up with a lower monthly payment. Also, a lending institution may have more attractive student loan consolidation incentives than what you currently have such as rebates or last month free.

Sadly, a borrower may have to consolidate in order to avoid defaulting in any of his/her existing student loans. As mentioned earlier, when consolidating, that borrower is in fact getting a new loan that pays off the existing loans. By doing so, the loan that is about to default gets paid off and is assumed as part of a new, but bigger, loan. By consolidating timely, that borrower avoids a very bad mark in his/her credit report.

THE BAD

Just as there are good reasons for student loan debt consolidation, there are drawbacks that you must consider before speaking to a smooth talking consolidation counselor.

In fact, if there's one thing that you should remember from this article, then it should be this passage. Just because someone shows you a lower monthly payment, it doesn't mean that you're saving money. The big picture could be the opposite. Because in order to get a lower monthly, the length of repayment may have been extended. So that your loan payment period is now 30 years instead of 10. Longer payment means higher cost of the loan.

Also, some programs that may be advertised as low interest student loan consolidation may not have a forbearance or forgiveness provisions. These provisions can be helpful in situations when you need relief. Lastly, if there are any attractive borrowers bonus, such as rebates, you may lose it.

WHAT TO DO

A good student loan consolidation program can save you money and ease your monthly financial burden. But keep this in mind, the best student loan consolidation is the one that's custom-made for you because your situation is different from the next borrower. Just like any financial products, you must shop. There are a number of online sites that let you compare student loan consolidation programs. The good ones list the banks, their rates, and the provisions. Use these sites as tools to your advantage.

Student loan consolidation services

Student loan consolidation services

When it comes time to consolidate student loan debt, a person should take several things into consideration. Most importantly, they should be able to look at the different student loan consolidation services available to ensure that they are getting the best rates possible. Paying back student loans can be a difficult thing to go through, especially the initial process of consolidating the loans. Once this is done, paying back the student loans can be as easy as one payment a month. The great thing about a student loan consolidation is that it reduces the amount of monthly payments to make it more manageable to pay back the debt. Working with the right student loan consolidation services will make the process that much more convenient and easier to manage. Also, the student will likely have questions throughout the loan repayment; working with a student loan company will help to answer those questions.

When a student is about to consolidate their student loans, they should compare the interest rates of the different companies before they go with a particular one. Different student loan consolidation services will be able to help a student through the entire process and can answer any questions that they might have. For many students, the consolidation company will be able to explain the process and everything that will be expected. Having a student loan company that is willing to help and to work with the student is an important thing to have. No one likes to go through the process and it can be difficult sometimes. It is important to find the company that is willing to make the process as convenient as possible. Many student loan companies will be able to take a lot of the pressure off of the student. When a student finds the company that can do that, they should begin to consolidate their student loans.

When consolidating student loan debt, it should be done within the student’s grace period, before they have to begin paying back their student loans. By getting a student loan consolidation, the student will have time to worry about other things that come with graduation- life. When a student consolidates their debt, they will be able to manage their money and they can plan out their budget every month. The student loan company pays off all of the student loans and consolidates them into a large loan. From there, the student simply has to pay off a part of the loan each month. There are different options of payment plans that a person can choose from to pay back their loans. When the student loan company sits down with the student, they will be able to offer the best choices based on the student’s financial situation.

There are many things that a person has to consider when they begin looking at the different companies and what each company has to offer. The two most important things are the interest rates being offered and the amount of customer service that the company is willing to provide to the student. These two will make the difference between easy an student loan process, and a difficult one.