Is Student Loan Consolidation For You?
By Carson D Danfield
You finally made it through college! That's great, but did you end up with a mountain of debt in the form of student loans? If so, you're not alone. With the high cost of continuing education, more and more people are having to finance that education with the help of student loans. Luckily the programs exist, but unfortunately, you can be left deeply in debt before you even start on your new career. One thing that might help you is to consolidate all your student loans so that you'll only have one payment to make each month, instead of several. And that one payment can be substantially lower than the total you're paying now.
Student Loan Consolidation Programs
Student loan consolidation programs help you to take control of your finances by lumping all your loan payments together into one easier to pay loan. This could reduce your monthly payment by up to 50% or more. The amount of the reduction depends on the amount of your other loans and the type of program you apply for.
Consolidating your student loans might also qualify you for a lower interest rate on your new loan, therefore reducing your payment even more. Plus if you combine all your smaller loans into a single loan, it might even help to improve your overall credit score or at least help to maintain its current status, since you will be able to meet your monthly obligations easier.
Programs for Defaulted Student Loans
There are even programs that were designed specifically for defaulted student loans. This type of program also includes credit counseling. The consolidator will procure your existing student loans so they are paid off in full and then you'll have one monthly payment to the new loan company who will help you rebuild your credit.
Thanks to this program, you'll be better able to keep your monthly payments on track, since the amount you have to pay each month will be lower. Your credit rating will begin to improve and you won't have to endure any more embarrassing phone calls or threats of wage garnishments. Ever notice how those phone calls always seem to come at the worst possible times?
Federal Direct Loan Consolidation Program
Another program for student loan consolidation is the federal direct loan consolidation program. This can help reduce your payments up to 50%. The good thing about this loan is that it usually has a lower rate of interest, so that it keeps the payments low and guards you against inflation.
If you're having problems keeping up with your monthly student loan payments, then you really should look into consolidating them into a single loan. Doing so can dramatically lower the payments as you're likely to get a lower interest rate and stretch the loan life out over a longer period of time. Having to pay less each month on your student loans means you'll have more money available for paying your other expenses.
Carson Danfield is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years. Although you've probably never heard of him. there's a good chance you've visited his websites in the past and even purchased some of his products.If you'd like to get the more info about student loan consolidation be sure to visit Carson Danfield at http://student-loan-trix.com/
Article Source: http://EzineArticles.com/?expert=Carson_D_Danfield
Friday, August 31, 2007
Student Loan Consolidation Information
By Nelson Smith
Student Loan Consolidation is a really useful repayment tool that gathers all your federal student loans and puts them into one loan, also significantly reducing your monthly payment. Student loan consolidation is one of the most popular used methods for reducing and paying off student debt. Student loan consolidation is a powerful financial tool which has the backing of the federal government to help you lower your payments by extending your repayment term. Student loan consolidation also gives you the opportunity to lock in at a low interest rate, which can save you a huge amount of money over time.
Federal student loan consolidation amalgamates all your existing loans into one single loan which will show a good future payment history, which will help you improve your all important credit score. These student loan consolidation benefits could save you hundreds, even thousands of dollars in additional interest over the term of your loan. Federally funded loans are initially administered through the US Department of Education's Federal Student Aid programs, and are usually the easiest to get student loan consolidation services for.
After student loan consolidation, the variable interest rate becomes a fixed interest rate for a set period of time. Many people suffer from bad credit and this can cause problems with trying to obtain that all important college loan consolidation funding but if you utilize services of a federal-based company, they don't do any credit checks and the top benefit of all, student loan consolidation is considered as good debt and will be more appealing to any future lenders. The Federal Student Loan Consolidation Program lets anyone with more than $7500 in outstanding Federal student loans (including PLUS loans) to reduce their monthly student loan repayments and lock in a low fixed interest rate.
Federal loan are sent to the controllers office at your school, you then sign it over to the school and it is applied to the balance owed to the school. Federal Loans and Private loans cannot be merged when you opt for student loan consolidation. Federal student loans offer low interest rates and deferred payments. Federal student loans are some of the most affordable loans available to students and families, with interest rates lower than most other forms of financing and deferred payments (principal and interest) until after graduation.
By consolidating your federal student loans first and improving your credit score, you could get a better interest rate. Anyone with outstanding non-federal education-related expenses is eligible to apply for a Private Consolidation Loan. Students can consolidate while still in school, during the six-month grace period immediately following graduation or during the repayment period. A student loan consolidation program is a lucrative and efficient way for students to deal with student debt.
For more articles about all aspects of debt visit our website at
http://www.debitconsolidation1.com
Article Source: http://EzineArticles.com/?expert=Nelson_Smith
By Nelson Smith
Student Loan Consolidation is a really useful repayment tool that gathers all your federal student loans and puts them into one loan, also significantly reducing your monthly payment. Student loan consolidation is one of the most popular used methods for reducing and paying off student debt. Student loan consolidation is a powerful financial tool which has the backing of the federal government to help you lower your payments by extending your repayment term. Student loan consolidation also gives you the opportunity to lock in at a low interest rate, which can save you a huge amount of money over time.
Federal student loan consolidation amalgamates all your existing loans into one single loan which will show a good future payment history, which will help you improve your all important credit score. These student loan consolidation benefits could save you hundreds, even thousands of dollars in additional interest over the term of your loan. Federally funded loans are initially administered through the US Department of Education's Federal Student Aid programs, and are usually the easiest to get student loan consolidation services for.
After student loan consolidation, the variable interest rate becomes a fixed interest rate for a set period of time. Many people suffer from bad credit and this can cause problems with trying to obtain that all important college loan consolidation funding but if you utilize services of a federal-based company, they don't do any credit checks and the top benefit of all, student loan consolidation is considered as good debt and will be more appealing to any future lenders. The Federal Student Loan Consolidation Program lets anyone with more than $7500 in outstanding Federal student loans (including PLUS loans) to reduce their monthly student loan repayments and lock in a low fixed interest rate.
Federal loan are sent to the controllers office at your school, you then sign it over to the school and it is applied to the balance owed to the school. Federal Loans and Private loans cannot be merged when you opt for student loan consolidation. Federal student loans offer low interest rates and deferred payments. Federal student loans are some of the most affordable loans available to students and families, with interest rates lower than most other forms of financing and deferred payments (principal and interest) until after graduation.
By consolidating your federal student loans first and improving your credit score, you could get a better interest rate. Anyone with outstanding non-federal education-related expenses is eligible to apply for a Private Consolidation Loan. Students can consolidate while still in school, during the six-month grace period immediately following graduation or during the repayment period. A student loan consolidation program is a lucrative and efficient way for students to deal with student debt.
For more articles about all aspects of debt visit our website at
http://www.debitconsolidation1.com
Article Source: http://EzineArticles.com/?expert=Nelson_Smith
Finding The Best Student Loan Consolidation Program
By Jon Arnold
Many college graduates come out of school with several loans to pay off. This means that after the six month grace period there will be payments for each of your loans. Each of those loans will have their own interest rate which will make the loans themselves difficult to pay off completely. Finding the best student loan consolidation program can help you pay less each month and put an end date to those student loans as well.
The first priority will be to find the best student loan consolidation program. Each program will have its own perks and its own drawbacks. One of the most important details to the loan consolidation payback will be the interest rate that is charged each month. If you presently have two loans that charge 8% each you should consider the fact that each month you are paying 16% on your entire student loan. That means that you will be paying thousands on top of the thousands that you borrowed. When you consolidate those loans into one you’ll want to find the best interest rate which you will only be charged once each month.
When you’ve found the best interest rate, you’ll want to make sure that this loan also has the best terms for payback. In other words, be sure that the date set for the termination of the loan is reasonable. If you say that you’ll have your loan paid off in five years, be sure that this is feasible. Of course we can’t predict everything that will happen, but you should have a good idea of the amount that you’ll be able to afford over time. If ten years is more workable, find the best student loan consolidation program that has a good interest rate and the best payback terms.
A flexible loan payback program can be most helpful. There are those times in everyone’s life that money is tight. In those times it may be helpful to put your loan into forbearance. Be sure that the loan you decide to go back is willing to agree on a forbearance or restricted payback amount for a certain period of time while you get your finances back in order.
The loan’s interest rate should not be flexible however. The last thing you need is a large increase in your monthly payment because the interest rate fluctuated. Making sure the interest rate is fixed will also ensure that your payment will always be something that you can live with. When you know the payment that you’ll have to pay each month you’ll find that you can budget effectively.
If possible, make sure there is no penalty for making early payments or for paying the loan off early. If you get a windfall of cash from somewhere, you may want to pay off this student consolidation loan completely, so you want to make sure that is possible.
A consolidation loan can save you thousands. You will pay less each month yet your payment will be more effective. Your loans will have a definite paid date which is not ages into the future. Finding that loan may be easier than you think and certainly worth the trouble.
For more insights and additional information about a Student Loan Consolidation please visit our web site at http://www.debtconsolidationstrategies.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
By Jon Arnold
Many college graduates come out of school with several loans to pay off. This means that after the six month grace period there will be payments for each of your loans. Each of those loans will have their own interest rate which will make the loans themselves difficult to pay off completely. Finding the best student loan consolidation program can help you pay less each month and put an end date to those student loans as well.
The first priority will be to find the best student loan consolidation program. Each program will have its own perks and its own drawbacks. One of the most important details to the loan consolidation payback will be the interest rate that is charged each month. If you presently have two loans that charge 8% each you should consider the fact that each month you are paying 16% on your entire student loan. That means that you will be paying thousands on top of the thousands that you borrowed. When you consolidate those loans into one you’ll want to find the best interest rate which you will only be charged once each month.
When you’ve found the best interest rate, you’ll want to make sure that this loan also has the best terms for payback. In other words, be sure that the date set for the termination of the loan is reasonable. If you say that you’ll have your loan paid off in five years, be sure that this is feasible. Of course we can’t predict everything that will happen, but you should have a good idea of the amount that you’ll be able to afford over time. If ten years is more workable, find the best student loan consolidation program that has a good interest rate and the best payback terms.
A flexible loan payback program can be most helpful. There are those times in everyone’s life that money is tight. In those times it may be helpful to put your loan into forbearance. Be sure that the loan you decide to go back is willing to agree on a forbearance or restricted payback amount for a certain period of time while you get your finances back in order.
The loan’s interest rate should not be flexible however. The last thing you need is a large increase in your monthly payment because the interest rate fluctuated. Making sure the interest rate is fixed will also ensure that your payment will always be something that you can live with. When you know the payment that you’ll have to pay each month you’ll find that you can budget effectively.
If possible, make sure there is no penalty for making early payments or for paying the loan off early. If you get a windfall of cash from somewhere, you may want to pay off this student consolidation loan completely, so you want to make sure that is possible.
A consolidation loan can save you thousands. You will pay less each month yet your payment will be more effective. Your loans will have a definite paid date which is not ages into the future. Finding that loan may be easier than you think and certainly worth the trouble.
For more insights and additional information about a Student Loan Consolidation please visit our web site at http://www.debtconsolidationstrategies.com
Article Source: http://EzineArticles.com/?expert=Jon_Arnold
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