Student Loans: April 2009

Thursday, April 30, 2009

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Tuesday, April 28, 2009

student loan options?

I'm having a hard time finding a different loan that what I currently have with better options. I currently have a Citibank loan. However I'm looking for a legit company that can offer me fixed rates (i.e. not some X% above APR), deferred payments till 6 or more months after graduation or no longer a full time student, and at least $40,000 available per year. Any suggestions would be greatly appreciated. I have a loan already for this fall, but I'm still looking for better options. Since i applied for a loan for the summer, interest rates have increased 1 percent, adding $7,000 to my final payments, and that was on just a small sum of money, I hate to think what will happen in the next 3 years. Thanks

Public Comments

Check out these loans: Stafford loans (Subsidized, Unsubsidized and Additional Subsidized) (link 1) Perkins loans (link 2) PLUS loans (link 3) Private loans (up to $40,000 as you requested, link 4) Additionally, for individuals who do not qualify for federal loans, private loans are available through private lenders, banks and institutions. Interest rates for these loans vary, and are determined by the individual lender or institution, and are based on an individualâ€™s creditworthiness. Good luck!

If I consolidate my student loan with a personal loan can I still write off the interest?

I had a federal student loan which I consolidated about 8 years ago to someone who eventually sold that loan to Citibank. I pay about 8.35% in interest. I am considering paying off that student loan with a personal loan where I can get a better interest rate. If I do this will I still be able to write off the interest I pay on my taxes?

Public Comments

Nope. It will no longer be a student loan then. You may be able to consolidate several student loans into another student loan at a better rate, but if you pay it off with a personal loan you'll be left with a non-deductible personal loan.

Do I have to send my grades in if I take out a Private Student Loan?

I'm planning to take out a private student loan from Citibank, do I have to send my grades in?

Public Comments

If you're trying to get private student loans with bad credit, you may feel like its hopeless. While it is more difficult if you dont have any credit or your credit score is less than perfect, there are ways to be able to get the money you need for education. Many people who need money for education prefer using private student loans. http://worldbestloans.com/student-loans.htm The loan industry has changed to the extent that getting a loan with bad credit is not as difficult as in the past. While the interest rates may be a bit higher, it is still possible to get loans even if you have bad credit.
No, you will not need to submit your grades. Private student loans generally require the following documentation after credit approval: - Signed promissory note (a legal agreement that you will repay the loan). - Identification (such as a state-issued driver's license). - Proof of school enrollment (signed acceptance letter, official class schedule, tuition bill, etc.)
Many Banks, financial institutions, online lenders etc are ready to offer the loans for students. But students considering their precious time and finds easy to via online as it provides easy access than other source. There are a large number of requirements other than college or course fees. Some of the most crucial are computer expense, hostel charges, and books and so on. The best college student loans are one which comprises all such expenses. But, to qualify for any such one, you have to give it your best shot as far search is concerned. Such purpose can be accomplished by exploring World Wide Web. You will find an innumerable number of lenders offering college student loans. http://loan-house.we.bs/studentloan.html http://loan--house.blogspot.com/2008/03/student-education-loan.html
If your credit is not near perfect, you wont be able to get to a private loan. Sorry. But grades are not required. The CitiAssist loan is based on enrollment that is certified by the school. Again good luck.

What is the best private student loan for someone with good credit? Chase, Citibank,Bank of America, Wachovia?

Please don't mention federal, I'm only interested in private student loans. Lowest interest rates, fees, etc. Thank you!

Public Comments

When I researched the private loans in June 2007, the interest rates and fees were higher than the state student loans. I'm not referring to Perkins or Stafford, rather some states offer their own low interest student loan paid directly to the college. We put the loan in our name with my son listed second, and saved another 2% and it is deferred till after graduation. Check out the FASFA site to see if your state or the state in which you are going to college offers their own loan program. Good luck.

Is there any way to consolidate federal student loans with a private student loan before the july 1 deadline?

I have 3 student loans through the federal gov't (perkins, federal direct and a "GATE" - AES loan). I also have a small private student loan through citibank. I want to consolidate all 4 by the July 1 deadline but no one will combine private and federal. I get ads in the but they all seem like scams to me. Any financial experts have any ideas?

Public Comments

As far as I know consolidation is only on govt loans you cant consolidate a private loan.
Have a look here.

If citibank goes under, what happens to my student loan from there?

I have a college loan from CitiBank, and they're having trouble right now. what happens to my college loans from there if citibank goes under?

Public Comments

Your loan will be sold to another bank
someone else will just pick it up. you might luck out if the gov't grabs it they ll probably renegotiate your rate with you since they want to get rid of their bad assets as much as you want to get rid of your debt
Your loan will be sold, you still need to pay it.
Most likely Citibank sold your loan a long, long time ago...they are probably only the loan servicer (if you know how to read mice print you can probably prove the true owner of your loan). But, even if they did still own it, it would become an asset of the company in bankruptcy and would be sold to the highest bidder. Then you would pay that company according to the same terms.

Student loan disbursements are through Citibank. Any chance these wil be affected?

I get another disbursement of my student loan in January and then again in March. Any chance this could be affected by what is happening at Citibank right now?

Public Comments

typically, if the loan has been certified by the school, it would be honored. that is situational, of course, and i would call citibank to verify... good luck

citibank student loan promotional code?

anyone have a citibank promotional code that i can use for my consolidation loan ?

Public Comments

omg do not consolidate with citibank!!!!!! private credit card companies will kill you with interest!!!

Does a student loan and a bank loan affect your credit the same way?

I have one credit card ( revolving credit ) and I have one student loan ( fixed monthly payments ). I want to keep one revolving account and one fixed account. Would a bank loan that pays off the student loan look better as a fixed loan? I guess my question is: Do they both count as fixed loans or is the bank loan a more "authentic" fixed loan?

Public Comments

doesnt matter....they're both 'installment' loans on your credit report. i wouldnt take a bank loan because MOST LIKELY the interest isnt tax deductible like the student loan. i would advise to have 2-3 credits...2 installment loans....can be student loan, auto loan or other loan...and a MORTGAGE! make sure you keep low balances are on revolving accounts...and you should be go to go.
Credit card debt affects the studies seriously. Lack of concentration, focusing on excessive debts can lead to lower scores and GPA. Lack of proper attention to studies, lower GPA's, increased debt pressure can all lead to a point where student drops out from the college. A high credit card debt can force a student to take up a part time or regular job, which often has a degrading effect on studies. Though the student credit card is designed to give a good beginning to a person's credit history but, excessive debt can cause a serious dent to credit score this factor alone can cause serious problems for students. Due to a bad credit score which is the result of credit card debt, a student can face difficulties in finding apartments for rent. Same factor can make insurance rates higher or unaffordable for students, because insurance companies find it risky to insure people with poor credit. Getting a job also becomes difficult when a credit card debt causes poor credit history. The employer also shy away from people with poor financial skills and money management.

Is student loan still tax deductable when refinancing a student loan with a personal loan?

My daughter has two very high interest student loans. Her credit won't let her do anything, but I can "refinance" it with me getting the loan using my credit. But is it still a "student" loan that she can deduct. She is making the payments and her name will be also on the loan (ironically, she will co-sign for me). This seems to be some gray area once the loan gets moved around. Just want to make sure the "chain of custody" still makes the new loan interest tax deductable. Hope this made sense and thanks for your help.

Public Comments

Nope, sorry, but personal loan won't qualify, as you will have nothing in writing to say that it is student loan interest.
It wasn't that very clear, but from what I understood your co-signing on the loan. She'll pay for the loan's premium and interest. and that's about it ... Remember: Who ever pays the student interest, that person will have the right to deduct those interest payments on their tax return (up 2,500). The only thing that I can figure that will absolutely confirm that you are paying a student loan is that if at the beginning of the tax season, you receive a 1098-E "Student Loan Interest Statement" from your Lender.

Student loan?

I know I'll need to get a student loan sometime during my university studies. I was just wondering how they work, what you need to get one and how long you have to pay it back. Any extra details would be much appricated. P:S I am a planning on studying in the U.S but I live outside the U.S.

Public Comments

Most student loans are limited to citizens or resident aliens of the US. You do not mention whether you are a US citizen living outside the US, or a citizen of another country. If you are a US citizen, or resident alien (there are a couple of other types of non-citizens that are eligible...refugees for example) then you need to apply each year. The first step is the FAFSA and you can apply on line at www.fafsa.ed.gov. After that, there is more to do, but it varies depending on the answers on your FAFSA. Good luck.
like mentioned earlier, you must be a us citizen or eligible non citizen to get student loans. Here is a good book that describes everything including the definition of us citizen and eligible non citizen. (look in the index in the back)
The Student Loan can help to finance your study. It's made up of three parts - compulsory fees, course-related costs and/or living costs. And if you are a international student who are planning to study in US. Students can apply for the loan program online or through internationalstudentloan.com website . You can borrow annually up to $70,000 for medical, dental, law or business school, and up to $50,000 for graduate and undergraduate study. International students are required to have a US Citizen or permanent resident as a co-signer to apply for this loan. These loans also offer: * Funds are disbursed directly to you! * Loans are accepted at thousand of approved schools * Competitive interest rates * No application fees

Sunday, April 26, 2009

Student Loan Consolidation Rates

Student loan consolidation rates are competitive and can be found online or through traditional lenders. The government also offers options with a student loan consolidation rate that is competitive with the private sector. Often, this rate is fixed, offering students the opportunity to make one payment monthly at a percentage that has been averaged and determined by the sum of all of the debt. Once a person has graduated or has ceased to be a full time student, the grace period of six to nine months allows them to obtain employment and financially prepare for payments. Consolidating and getting good student loan consolidation rates can help a student transition into a responsible bill paying consumer.

Consolidating can be done online through many different lenders offering great deals for various packages. Student loan consolidation rates can save students money by combining their debt into one lump agreement, at an average or lower student loan consolidation rate. Quotes are available online and can be price-compared just as any loan can be comparison-shopped online. The federal government also offers consolidation programs for federally funded lending programs. Finding which program to choose is often the most difficult part of consolidating.

Comparison shopping can be the best tool in finding the best student loan consolidation rate possible. This information is published throughout the Internet, and thousands of students are taking advantage of the competitive quotes and finding affordable payment plans. There are even brokers online that will price-compare student loan consolidation rates for the students, offering several quotes from different lenders to the enquirer within minutes, giving the individual a good idea of the percentage range available through consolidating.

The ability to consolidate debt is growing ever-popular as Americans continue to acquire debt at an alarming rate. Consolidations are one way of getting control over spending and effectively planning a budget. If an individual is graduating with several payments in their near future, they should consider consolidating debt to help manage finances. Searching online and gaining more information about a student loan consolidation rate, and speaking with several lending companies, will allow the individual to make an educated decision. It is also important to pray about all upcoming events in life. God has a plan and He, when sought, will reveal His will to a Christians heart. "Call unto me, and I will answer thee, and shew thee great and mighty things, which thou knowest not." (Jeremiah 33:3)

Student Loan For College

Student loans for college are necessary for a lot of families, and the sources are numerous, depending upon how much the family can contribute toward a student's education and the credit standing of the borrower. Students can get information on a student loan for college through the school they plan to attend, by contacting their bank, or by looking on the Internet. Federal loans are often the first place families look, and student loans for college are available through the Perkins, Stafford, or PLUS funding programs.

A loan from any of the federal sources has a low interest rate, which is attractive, but there is red tape involved. This money must be applied for between January 1 and June 30 for the fall academic year. In April the awards letter go out, and if the student loan for college is offered, it will be for approximately one-half of what is needed. The family is expected to pick up the rest. Education is important at home and in a university. Proverbs 22:12 instructs parents to "Train up a child in the way he should go: and when he is old, he will not depart from it."

In the years between 1993-94 and 2004-05, the cost of attending a public universities has gone up 51.4%, and private universities have seen an increase of 61.7%. Parents hope their children will be eligible for a full scholarship for college, making this type of funding unnecessary. However, the chances of that occurring are not high. Those who must borrow all or part of the funds needed for college often turn to private lenders. The cost will vary according to the credit rating of the borrower. For someone beginning payments on student loans for college immediately after disbursement rates can vary from 1.5%-10% depending on credit score. Interest rates are calculated monthly, but payments can be extended for a period of four to twenty years with this kind of student loan for college, and no family contribution is expected.

Still another way to obtain this funding is a home equity line of credit. Amounts are available up to the amount of equity the homeowners have in their place at a low interest rate, and they are deductible at income tax time. This is probably a last resort kind of student loan for college for most parents because it places a lien on their home, and if payments are not made for any reason the lender can foreclose on the house. There are enough options for student loans for college that most students who desire an upper level education can get one.

Student Loan Refinancing

Student loan refinancing is a great way to reduce monthly payments and possibly decrease the amount of interest paid each month on educational debts. When considering the consolidation of student loans, information on this can be as close as one's own bank. They may be able to offer great rates because they already have history and may be more willing to assist. Another option would be to shop around on the Internet or through the yellow pages. The worldwide web has thousands of resources available for any type of financial dealings.

Whatever route taken to research, be careful to look at the whole package and not just the monthly payment or interest rate. Student loans refinancing is a way to help with the payments that need to be made, but care needs to be taken not to make a settlement or negotiation for the student loans. In some severe cases, refinancing may best be done by settlement or negotiation, but most of the time it just hurts a credit score. The goal in student loan refinancing is to lower the monthly payment and/or the current interest rate.

It is also important to look at the fees the bank will charge if a payment is late and what arrangements they can offer if a payment cannot be made due to the loss of job or some other type of emergency that would prevent payment being made on the student loan refinancing. The decision to look into this type of financing needs to be a personal financial decision. In order to fully understand why this would be beneficial, a look at the past, present, and future financial picture would need to be done.

Counseling is available through any financial institution or from a financial advisor to help one understand the big picture and all that may be involved. Whatever type of professional chosen to discuss all the options for student loan refinancing, make sure they are well educated and have many years of successful experience behind them. This will ensure the best advice about what to do concerning student loans refinancing.

In choosing a financial path to follow it is important to consider what God says about the use of money. There are many more times that God mentions money than He mentions anything else in the Bible. He wants us to use His money is an honest, giving way. Student loans refinancing can be a positive experience if handled in a Godly way. Seek Godly counsel if unsure about the decision regarding any finances. "I will instruct thee and teach thee in the way thou shalt go: i will guide thee with mine eye." (Psalms 32:8)

Sunday, April 19, 2009

Private Student Loan

Private student loans are a smart way to finance a college education with the benefits of competitive interest rates and deferred payment plans, usually based upon credit worthiness, with proof of income required. For the borrower who is self-employed, being in business for at least 2 years is necessary for approval. Borrower must be a U.S. citizen or permanent resident in order to qualify. Foreign students applying for a private student loan may need a co-signor who is a U.S. citizen or permanent resident. There is a maximum amount that can be borrowed. This financial aid will not be taken into consideration regarding approval and the amount of financial aid received will not affect the amount to be loaned.

Repayment plans vary, and the options usually include immediate repayment, due 45 days after last disbursement; deferred repayment which begins 6 months after graduation; or pay interest while enrolled in school and begin repayment of the principal after graduation. An undergraduate program may include no payment up to 4 or 5 years. A graduate program may include no payment up to 8-1/2 years based upon internship or residency requirements. A certificate program will depend on the certificate and the time to completion for repayment of private student loans. Most lenders offer up to 20-year terms for repayment on a private student loan. There are usually no prepayment penalties and, origination fees are usually charged by the lender and added on to the loan. These fees are based upon a percentage that varies depending on payback options.

To apply online is very easy with an online application. It is important to know the school of choice information when applying for private student loans. The lending institution will need to know the information and must have the school on their approved lists of schools. Online applications include fast fax back options that make the process fast. When applying for a private student loan it is a good ideal to know the degree program desired and the time it will take to complete the program. Having communicated with a school enrollment counselor will help the student to make these decisions and have this information available to the lender at the time of application. This will speed up the process. "How much better is it to get wisdom than gold! and to get understanding rather to be chosen than silver!" (Proverbs 16:16)

No Credit History Student Loans

Some student credit card applications give great terms and are available online for those attending universities, community colleges, and private institutions. Some companies offer 0 percent for the first 6 months and no annual fees. They also offer additional incentives such as earning reward points for various services or low fees and compatible terms. Sources online have options to help coeds with short-term and long-term educational needs. Companies advertise consolidation offers and terms for car financing. These contracts can be used to purchase a new computer for school, to help with daily expenses of living in a dorm, or aid in purchasing books and educational supplies. A student credit card will help students build their financial history, but it is best to research the websites for the best rates and terms. The borrower should look for no annual fees and low fixed interest rates. Some contracts may flexible payback options, such as deferring payment until after graduation.

Debt consolidation is possible through student loans with no credit check. After graduating from college, the graduate may need to consolidate his indebtedness so that the payments are manageable. A consolidation program will combine all federal and private student funding into one low monthly payment. The graduate may also encounter extra expenses after graduation such as purchasing a vehicle to help with job hunting or renting an apartment. These financing difficulties can be solved with low interest through student loans with no credit check.

Applying for a student loans with no credit check will bring up some important issues. First is the wisdom of applying for more credit before the borrower has a stable income. When the continuing coed or the graduate looks for funding with no annual fee or other fees and has low interest, preferably 0 percent initially, he can begin building his financial portfolio and help keep debt balances down so they can be paid off monthly even while attending class or job hunting. Since there are many choices online, students should pray about the best student credit card offer. Acts 6:4 says, "But we will give ourselves continually to prayer, and to the ministry of the word." This is especially important when making big decision like whether or not to sign a contract that will affect a person's future. Student loans with no credit check is only a solution if it is in God's will and a wise choice for the borrower's future.

Student Loan Help

Student loans help people pursuing higher education to accomplish their goals, when they don't have the financial resources to do so at the time of taking classes. There are Federal and Private institutions that offer many different types of financial aid programs. There are also companies that offer consolidation services for education financing, where they will assist in refinancing to lower monthly payments. A student loan helps in graduate and undergraduate financing. Different companies offer different options, according to what the personal needs may be.

Years ago, the only options available were at the financial aid office at the college or university. Now there are many sources available online. The Internet offers a vast array of information. A student loan helps anyone wanting to be realistic about education endeavors. If a person has enough money to get through 3 years of college, but the program will take 4 years, student loans help to make this happen.

With the rise of costs associated with higher education, many more students have loans and financial aid packages today than ever before. Due to the complexity of multiple loans and the regulations on repayment, a student loan helps. If a scholar becomes inundated with outstanding debts, a student loan helps with changing payment schedules, lowering interest rates or even extending the length of time for repayment.

Seeking out assistance can help to avoid salary garnishments and/or the confiscation of federal tax return checks to be placed towards this debt. Repayment schedules on education debt vary and since they can be changed, seeking out student loan help is most beneficial. With the availability online, student loans help without much effort. Nahum 1:7 says "The Lord is good, a refuge in times of trouble. He cares for those who trust in him," Any decision in life is hard to make because the outcome is uncertain, but trusting in God to guide His people in the right directions will give anyone peace.

If a person is seeking assistance, the choices are many and there are various sources and different types of financing to help with education. So, whether the financing is from the Federal government or from a private foundation or lending source it is a good idea to research all options. The best place to start is the Internet or the local university. Credit unions and private resources offer great options as well, but this information will be harder to find.

Get Rid Of Student Loan

Get rid of student loans by either creating a budget where significant payments can be made on account balances each month or look into debt consolidation. To get rid of debts borrowed for educational expenses, the borrower needs to be dedicated to the goal of repayment without recurring the financial situation. This may sound easy, but there is always somewhere else that the money could go instead of paying faithfully on student loans.

Creating a manageable budget is one way to get rid of student loans. This would include being serious sticking to the plan. If it seems impossible to pay off large amounts of student loans, but don't want them to go to collections it is necessary to 'buckle down' and try to make the most of the money being earned. One way to create a budget to separate everything into percentages. Figure in all fixed expenses like rent and car payment and write them down. Figure out what percentage of total income they represent and go from there. The average person spends 125% of their income. Being dedicated to the goal to get rid of a student loan will enable following a budget much better than someone who half-heartily decides to create a budget.

Debt consolidation or debt settlement is another way to get rid of student loans by lowering the payments on the debt. Debt consolidation will allow grouping all debts into one debt hopefully at a lower payment. If serious about eliminating education debt, but just can't come up with the money this is definitely a viable option. Eliminating educational financial aid indebtedness is a great relief not only financially, but also emotionally. If a reputable company is contacted that will help prepare a plan for how to get rid of a student loan, the borrower can start to feel better about their education and the new income being earned.

Federal student loans are still due and payable in the event of filing bankruptcy. It is important not only get rid of student loans, but also make sure that it is being done in a way that is ethical. To get rid of a student loan by not paying on it will not exclude these funds in a bankruptcy situation. It is important to trust that God has put the graduate into the place and career He wants and He can therefore be trusted to provide for the repayment and elimination of the debt incurred while in school. Believe that "I can do all things through Christ which strengtheneth me" (Philippians 4:13).

Student Loan For College

A loan from any of the federal sources has a low interest rate, which is attractive, but there is red tape involved. This money must be applied for between January 1 and June 30 for the fall academic year. In April the awards letter go out, and if the student loan for college is offered, it will be for approximately one-half of what is needed. The family is expected to pick up the rest. Education is important at home and in a university. Proverbs 22:12 instructs parents to "Train up a child in the way he should go: and when he is old, he will not depart from it."

In the years between 1993-94 and 2004-05, the cost of attending a public universities has gone up 51.4%, and private universities have seen an increase of 61.7%. Parents hope their children will be eligible for a full scholarship for college, making this type of funding unnecessary. However, the chances of that occurring are not high. Those who must borrow all or part of the funds needed for college often turn to private lenders. The cost will vary according to the credit rating of the borrower. For someone beginning payments on student loans for college immediately after disbursement rates can vary from 1.5%-10% depending on credit score. Interest rates are calculated monthly, but payments can be extended for a period of four to twenty years with this kind of student loan for college, and no family contribution is expected.

Still another way to obtain this funding is a home equity line of credit. Amounts are available up to the amount of equity the homeowners have in their place at a low interest rate, and they are deductible at income tax time. This is probably a last resort kind of student loan for college for most parents because it places a lien on their home, and if payments are not made for any reason the lender can foreclose on the house. There are enough options for student loans for college that most students who desire an upper level education can get one.

Student Loan Interest Rate

Student loan interest rates vary depending on the lender, the amount borrowed and the college attendees or their parent's credit history - thus, factors that can all be manipulated to get the best percentage. For example, Stafford loans, PLUS loans and consolidated loans all have different interest rates. Stafford loans have a lower rate than PLUS loans, and PLUS loans have a lower rate than consolidated loans, which have an interest rate which varies, according to the underlying loans' primary rates. In other words, borrowers need to take into consideration the fact that most loans have variable percentages, while consolidations have a fixed rate. When borrowing, the college attendee and/or parent must take precautions as to the type of loan they choose. Student loan interest rates hold an important role in which type of lending the borrower selects.

Percentages were at an all time low for several years, until this year when they went up almost two percent. The lending process should be researched before school begins. As much thought should be put into the student loan interest rate as is put into what classes the college attendee is going to have to take. The borrower thinks of what they will do after graduation and as far as their long-term goals are concerned. They should also think of the long-term where student loan interest rates are concerned.

Because a lender's percentages are out of sight while the student is in school, it is also out of mind until graduation, at which time the harsh reality of borrowing rears its ugly head. Borrowers shouldn't wait until it's time to pay the amount back but find the best student loan interest rate from the start, and be prepared for the future. It's better to know what will be ahead by knowing what student loan interest rates are in advance.

The individual should understand all aspects of going to college, to include percentages on lending. They should never go into anything that involves finances blindly. It's important to be aware of every detail of a student loan interest rate, because it will have an effect at some point in time. Checking with local banks, colleges, and online to find out what the best student loan interest rate will be is a wise move. Any decent buyer wouldn't go buy an automobile at one place when the same automobile is available with another dealer for much less. Shopping around and finding out what choices are best will be well worth the time and effort. "He fashioneth their hearts alike; he considereth all their works" (Psalm 33:15).

Federal Student Loan Consolidation Programs

Federal student loan consolidation programs are available for individuals with student loans who want to consolidate them into one lump debt. Not only does the program wrap all loans into one bundle with a single payment, there are also other advantages. Federal student loan consolidation programs allow the borrower to secure a fixed interest rate which will adhere to the life of the loan, and can never exceed 8.25 percent.

By using the federal student loan consolidation program, individuals will save themselves money by fixing their interest rate. Even if a student loan is in default, as long as there isn't a judgment against it or garnishment, the amount will most likely still qualify for consolidating. If the borrowed amount is in its grace period, or deferment or forbearance period, the borrower is eligible to utilize the federal student loan consolidation programs. However, using them could be a hindrance.

Depending on how badly the need to lower payments, using the federal student loan consolidation program could have the disadvantage of increasing the total interest payments because of the longer time period to pay the amount off. Sometimes it's important to do what is necessary in order to lower payments, though. Life can be difficult but choosing "rather to suffer affliction with the people of God, than to enjoy the pleasures of sin for a season" (Hebrews 11:25) is the better choice. In other words, it's better to have to pay more, and be able to make payments, than getting in a bind and not paying back loans. Consolidating can help borrowers do that.

Some may feel that the federal student loan consolidation program sounds complicated, but it's not as difficult to understand as it may seem. The payment plans can be figured by taking the weighted average of the interest rates on all amounts to be consolidated, and rounding that to the nearest one-eighth of one percent. To figure the weighted average of the interest rate to each lender, simply take each loan and multiply it by its interest rate. Next add the weight numbers together and then add the amounts together. Lastly, divide the weight total by the total amount and multiply by 100.

There are many online calculators which will figure the estimated weighted average interest rates so that borrowers will have an idea of what payments would be. Using a federal student loan consolidation program makes it easier for the borrower to keep up with one debt instead of several from several different lenders. It also helps to have the interest rate locked. Both students and parents are eligible to consolidate and should take the time to seriously consider it.

Student Loan Elimination

Student loans elimination give college graduates the possible option of erasing their college debts through special work programs or through consolidation. As university tuition continues to rise, graduates are entering into the work force with major college loan debt, and that is just the beginning of the financial problem. Add a few other financial needs, and graduating students ready to take on the world are struggling just to take on their debt. Now, erasing these debts is becoming another major concern, as record numbers of college graduates default on their college lending. Whether private or government college lending are in question, there are avenues students can take to get debt help and in some cases complete student loan elimination. The Internet has many sources that can be used in finding the best solutions for all financial situations.

Debt is a major concern for America. The average household carries around $10,000 dollars in debt in unsecured amounts. Now, college kids are graduating and entering into the work force with mountains of debt that compound the upcoming debt issues in their lives. Graduates with large college debt and small beginner salaries are struggling to get their lenders paid and looking for student loans elimination. Some of the graduates that are searching are simply neglecting responsibility, but there are those graduates that are truly in desperate need for student loan elimination. Getting to the heart of the problem is first, and if the graduate is truly experiencing hard ship, there is help.

First, for those graduating students that are looking for ways to eliminate these debts and are simply experiencing a financial low, there are options. Getting college debt consolidation is far better than attempting student loans elimination. Debt consolidation can offer a lower interest fee and easy once a month payments. There are also refinance options for those who own collateral. When considering eliminating such debts, taking out an equity on a home might allow a college grad to pay off lending with the equity money and tax deduct the interest rate. There are many options that students looking into student loan elimination can consider before erasing debts completely.

There are cases where there is complete hardship inflicted upon a family or individual. "They mar my path, they set forward my calamity, they have no helper" (Job 30:13). There are guaranteed student loans that can be dismissed by the Federal Government if the student can prove undue hardship circumstances. To find out what qualifies these events, students should contact the financial institution that is administering their student loans. Student loan elimination will take time and research, and can be investigated further on the Internet where there are financial advisors offering information free of charge.

Federal Government Consolidations

Federal government student loan consolidations are available to students and parents who have borrowed money to finance education and want to pay off the debts in a manner that is easier and cheaper. While there are many advantages to consolidating loans, there are also some factors to consider before finalizing a plan for federal government student loan consolidation program. Rates may be similar. However, there may be some incentives worth looking into in order to lower the interest rate for one's college debts.

It is important to know who qualifies for this consolidating. Either a parent or a student may apply for federal government student loan consolidation. However, the student must be enrolled less than half time in order to qualify. In addition, the college attendee needs to be in a repayment period with their loan, or in a grace period, which is typically the six months after leaving school. Furthermore, to qualify, the borrower must not have previously consolidated their loans. However, if the borrower has lending that has not yet been consolidated with their other loans, they still may be eligible for federal government student loan consolidations.

While there are several advantages to participating in these programs, there are some additional things to consider before consolidating. The advantages include getting a lower, fixed interest rate, a lower monthly payment and flexible repayment options. These benefits to federal government student loan consolidations are in addition to the other benefits one probably already has: no fees, charges or repayment penalties and no credit checks or co-signers. On the other hand, the longer repayment term may increase the total amount of finance charges paid over the term. Furthermore, borrowers will not be able to consolidate again, even if the interest rates drop.

Some lenders offer additional incentives to bring the interest rate down. If borrowers allow electronic payments to be taken automatically from a bank account, they can qualify for a decrease in the interest rate. If they make 36 consecutive on-time payments, borrowers may be eligible for additional reductions of interest rates for federal government student loan consolidations. Finally, if the borrower consolidates during the grace period, they also can lower interest rates.

Deciding whether to participate in such a program is a decision that should take some serious consideration. Not only should one plan on doing research and comparison of federal government student loan consolidation companies, but one should also seek advice from others who can help weigh the decision. Most importantly, borrowers need to pray and consult the Lord who, when we acknowledge him in decisions, "shall direct our paths" (Proverbs 3:6)

Bad Credit Unsecured Student Loans

Bad credit unsecured student loans can be obtained for those who have failed to manage their money well, but the interest rates will be much higher. The borrower may feel that they are being questioned unreasonably. However, the determination to get a high education will be the necessary motivation to endure the process. As always, the key to get around the need for a bad credit unsecured student loan is to manage any and every debt with the utmost responsibility. Bad credit unsecured student loans only cost the borrower, not the lender the extra bucks, but the lender will take measures to assure they don't receive the backlash of another financial mismanagement. The main difference is that no collateral is asked for to secure repayment.

One can obtain a bad credit unsecured student loan from private creditors and/or the federal government. Either sector has either already given money to this borrower once before with a poor repayment history, or they were left without repayment on a current debt. This doesn't sit well with any creditor, but it becomes a necessity that results in a much more inflated interest rate, payment schedule and/or shorter terms of repayment. When a financial institution agrees to provide services, they do so fully aware of the borrower's poor risk and take all precautions to assure that they are not the next unpaid creditor. This involves a complete background check and, at some institutions, fingerprinting has become a standard procedure.

Just financing is created for borrowers with good or untested credit, bad credit unsecured student loans are made for the same purposes. Funds received can be used for all school expenses; tuition, books, board, computers, supplies. And since it is unsecured, the funds can be used for related non-school expenses, which include daily living expenses. The amount of the bad credit unsecured student loan is limited to the amount up to the full cost of education, less any aid received in most cases. Check with various lenders to see if any variance on limits of borrowing is applicable. Also, just like normal financing, principal and interest are deferred repayment during school when both character and skills are being learned. "Let no man despise thy youth; but be thou an example of the believers, in word, in conversation, in charity, in spirit, in faith, in purity." (1 Timothy 4:12)

When debts come due after graduation, a six month grace period is standard. This time period is meant to allow the graduate to find employment and get a running start on income that can be budgeted to allow repayment. Now that increased funding has allowed them the opportunity to get the all-important degree of education, employment choices should be far better. Bad credit unsecured student loans are available for application at any time in the year. A bad credit unsecured student loan allows for a shortfall mid-semester or unexpected circumstances, especially those that are school related like transportation to work-study jobs. Those who learn the responsibility of managing their short and long term ambitions have a far greater chance of managing their adult lives.

Student Loan After Bankruptcy

A student loan after bankruptcy is still a viable debt that needs to be repaid since these contracts aren't erased like other debts. The only way a borrower can dismiss these types of contracts is if his income possibilities are so limited that he cannot now, or ever (because of dire misfortune) pay the debt even though he's sincerely tried---and can prove all of this to an inquiring judge. Hopefully, the borrower's circumstances are not so severe because he can use student loans after bankruptcy to regain a better credit rating. The trick is to make the payments on time, every time, and even try to pay down the balance by making extra payments. If the contract has not been consolidated or negotiated or discussed with a financial counselor, then not all avenues of effort have been fully addressed. No matter what, young borrowers need to work closely and forthrightly with a trusted lender.

If the coed is able to double or even triple the minimum payments, success is on the horizon. Student loans after bankruptcy that are paid down will have the advantage of improving a person's FICO score, the three digit number that identifies that person as a credit risk or a credit star. It is worth the effort since this one commitment to "pay more" may mean that additional student loans after bankruptcy--even car and home loans--will not come with excessive, budget-killing interest rates later. Even making a year's worth of consecutive low payments on time shows good faith. Any effort to regain credit worthiness will play a significant part in a lender's decision. Bankruptcy itself may or may not have an impact on eligibility for federal student aid. By law, Title IV grants and loan aid cannot be denied just on the basis of a previous bad financial history.

Seeking a student loan after bankruptcy is an important step towards financial freedom. Federal contracts are especially helpful to borrowers because no repayment is required until 6 months after graduation. If there is still a question of delinquency or default, any school would be reluctant to add more financial risk to a young borrower, not to mention the financial risk it brings to the school. If parents are turned down for a federal contract because of bad credit, the coed can apply for an increased student loan after bankruptcy through an unsubsidized Stafford loan. The parents' credit history is not a problem for coeds unless they have parents co-signing the documents. If bankruptcy was caused by extraordinary circumstances, most lenders will try to find a way to grant a student loan after bankruptcy, if at all possible. No believer is exempt from handling money wisely. Proverbs 16:20 says, "He that handleth a matter wisely shall find good: and whoso trusteth in the Lord, happy is he." Our first source of wisdom is God. We must search His Word to help us find our way in the world, even as we apply for student loans after bankruptcy.

No Fee Student Loan

No fee student loans are those that require no application fees and no other fees until the repayment period of the loan begins. They are rare and many of the lenders that offer student loans do not provide the option for a no fee student loan, making it important to ask questions and understand the features of this borrowing option. This free lending opportunity, if available, should be taken advantage of by the student that is borrowing for his or her education.

It is a great opportunity if the no fee student loan option is available from any provider or lender the student may be working with. This type of lending program allows the amount to be given without the need to pay any application fee or other fees that may occur over the borrowing period. These other fees could include an origination fee or insurance fees that may be assessed. No fee student loans provide the borrower with money at no cost until after graduation or upon the terms or period set forth by the contract or agreement. Sometimes these options can be found through the financial aid offices of colleges or universities. Applicants need to talk with a financial aid officer to get details.

Usually, no fee student loans are more readily available to students that show a financial need. With education being fundamentally important throughout the world, lending services have been set up to help individuals who can not afford school or people with a need for further assistance in pursuing an education. If the student is still a dependent of their parents, this will be determined by the parents' income. If he or she is independent, approval will be based on his or her income or that income plus the spouse's when applicable. Standards vary from lender to lender. This lending, though, often carries lower interest rates, making it possible for those with less financial backing to pursue a college education.

As Christians, the lack of humility often creates strife or struggles in life because pride and arrogance get in the way. These loans are available to assist students in need and should not be considered as degrading. The Bible says, "Humble yourselves therefore under the mighty hand of God, that he may exalt you in due time." (1 Peter 5:6). A no fee student loan should be seen as a gift from God because it presents the chance to strengthen education and knowledge. This type of borrowing, while sometimes rare and hard to attain, provide opportunities of a lifetime.

Saturday, April 18, 2009

Quick FAQ - Consolidate Student Loans

If I consolidate student loans will it impact my ability to defer my loan?

No. Standard deferment and forbearance options such as in school-deferment, economic hardship deferments, and unemployment deferments are core attributes of your student loan and are not lost when you consolidate student loans.

Why is the monthly payment so much less when I consolidate student loans?

There are two reasons why monthly payments can be greatly reduced after consolidating student loans. The first is that variable rate loans are replaced by a single fixed interest loan. The other reason consolidating student loans can have such a big impact on reducing the monthly payment is that the repayment period can be extended past the standard 10 year repayment term if you choose this option.

Are there any downsides to consider when I consolidate student loans?

Should you choose to extend the repayment period beyond 10 years, you will pay more in interest over the lifetime of the student loan. For many borrowers, it's more beneficial to pay more in interest over a lifetime than struggle with high monthly payments.

Are there penalties for paying off the loan early after I consolidate student loans?

This depends on the lender. ScholarPoint does not add any penalties or fees should you choose a longer repayment term and then decide to repay the student loan early.

Is a credit check required when I consolidate student loans?

Student loans are relatively low risk because they are backed by the government and cannot be written off in bankruptcy. Therefore, most lenders offering student loan consolidation including ScholarPoint do not require a credit check to consolidate student loans.

How do I consolidate student loans?

Generally you will fill in a single online application form and begin your new lower monthly payments within 4-6 weeks. Learn more about how to consolidate student loans with ScholarPoint and earning up to a 1.5% interest rate reduction off of our already low rates.

Why a Student Loan Consolidation Rate Makes Such a Big Impact

The power of compound interest at work behind a student loan consolidation rate is incredibly powerful. Even Einstein was fascinated by how this tiny, seemingly insignificant percentage could pack such a powerful punch. Einstein created the rule of 72 referring to compound interest, calling it the "greatest mathematical discovery of all time."

Just decreasing the student loan consolidation rate by a small percentage can make an enormous difference in the amount of interest you will pay on your loan. For example, after repaying a $30,000 loan over a 10 year period with a student loan consolidation rate of 6.5%, you would have paid $10,877 in interest. Shave just 1 and a half percentage points off of the student loan consolidation rate and the total interest paid is reduced to $8,183.

Extend the repayment period out to 15 years and the gap between the two repayment rates nearly doubles. Using Einstein's rule of 72, when you divide the number 72 by the amount of interest you are paying on your debt, the result will be the number of years it will take to double if you don't make any payments.

Lender percentage interest rate reduction incentives

Many lenders offer student loan consolidation rates that are very comparable to each other. The real difference is in the interest rate reduction incentives offered by different companies. Two types of lender incentives that can greatly impact the student loan consolidation rate are on-time payments, and direct withdraw.

ScholarPoint has researched the competition in the market and has made a conscious decision to offer higher than average interest rate reduction incentives. By simply making payments on time through auto debit, something most people do anyway, borrowers can reduce their student loan consolidation rate by 1.5%. Secure a low student loan consolidation rate today by applying online or learn more by calling or real-time chatting with a loan specialist.

When to apply to consolidate student loans

It can take several months to process an application to consolidate student loans.It’s important to apply as early as possible to ensure that the process is complete by the time your grace period ends. Applying to consolidate student loans online can greatly reduce the amount of time to process the loan. Most borrowers who apply online with ScholarPoint have their loans processed within a week as opposed to several months. You won’t lose the benefit of the grace period if you apply to consolidate student loans early. On the application you’ll be able to designate when you’d like the loan repayment to begin.

Consolidate student loans during the grace period

When you consolidate student loans during the 6-month post graduation grace period, you’ll take advantage of one of the biggest money saving opportunities available. During this grace period, the interest rates are approximately .60% lower than when the loan moves into repayment status. The interest rate you receive when you consolidate student loans is dependant on the current government rate on the loan. When you consolidate student loans during this short window of time you lock in an incredibly low rate for the next 10-30 years of repayment.

Tips and Tricks for Lowering Student Loan Interest Rates

Most people understand the money saving impact of student loan interest rates when consolidating student loans after graduation. However, most borrowers don't realize that there are even more ways to reduce the interest paid on student loans through lender incentives.

In addition to shopping around for the lowest student loan interest rate, do some comparison shopping for incentive programs. Make comparisons of the following types of incentive options and see how ScholarPoint can save you thousands of dollars above and beyond the regular student loan consolidation savings.

On Time Payments and Interest Rate Reduction incentives reward borrowers with a lower student loan interest rate simply for making payments as scheduled. Many lenders offer student loan interest rate reductions of up to 1 percentage point after 36 months of consistent on-time payments. However, in a bold move to reward its best customers, ScholarPoint offers a 1 point interest rate reduction a full year earlier than the average lender.

Auto pay interest rate reduction incentives give borrowers a discount simply for electing to have payments deducted from their account automatically. Many companies offer student loan interest rate reductions of .25%. Again ScholarPoint has pushed the envelope, offering a .50% student loan interest rate reduction as an auto pay incentive.

Reducing your student loan interest rate by 1.5 percentage points with ScholarPoint's incentive reductions can make a huge impact on your overall repayment amount. On a $30,000 loan a 1.5% student loan interest rate savings can amount to a savings of roughly $2,700.

Competition in the student loan consolidation industry has greatly increased over the past several years. This equates to big savings for borrowers as lenders offer even more enticing student loans and student loan consolidation programs. ScholarPoint has spent years analyzing the student loan refinancing industry and developing one of the most comprehensive incentive programs in the industry.

5 Ways to Save Money through College Loan Consolidation

College loans are some of the most flexible and consumer friendly loans available. Understanding how to use the process of consolidating student loans to your benefit can help you to save a great deal of money. Most people realize that consolidating college loans can help them to lower their monthly payments, but there are also plenty of added benefits such as improving credit rating and lowering debt to income ratio. Here we'll take a detailed look at 5 ways you can save money by refinancing student loans.

Your rates are locked in at today's low rates after consolidating college loan debt

Because the majority of student loans are variable rate loans, they are subject to constant fluctuation depending on the current interest rates set by the government. With today's college student loan consolidation rates, you can lock in a low fixed interest rate. Because the rate is fixed after consolidating college loans, there are never any surprises when the first bill arrives after the yearly rate adjustment.

For many years, student loan rates remained at record lows. On July 1st 2006, rates increased significantly as a result of a government plan to reduce the federal deficit, but those who didn't refinance by July 1st 2006 can still save a lot of money each month by consolidating college loans. After consolidating student loans, the balance can be repaid over a longer period of time, reducing monthly payments by as much as 60%.

You can receive additional interest rate reductions through college debt consolidation

When consolidating student loans, you not only enjoy a fixed interest rate but you can also earn additional interest rate reductions offered by the lender that consolidates your college loans. Different lenders offer different types and amounts of incentive plans, and by knowing what to look for, you can save yourself a great deal of money above and beyond the already low consolidation rate.

ScholarPoint offers is customers a full 1.5% interest rate reduction, one of the most competitive savings incentive offers in the industry. The majority of incentives are offered to customers for making on-time payments and for having payments directly debited from their account - something most people do anyway!

Improve your credit score by consolidating college loans

Many students take out numerous loans throughout their college years. A student that takes out just one subsidized and one unsubsidized student loan every semester will accumulate 16 different loans on their credit report over the course of four years. While numerous loans are a benefit when it comes to paying for college, they can really drag down a credit score after college.

When consolidating education loans, all of these open loans are closed and replaced with one simple loan for the entire balance. After consolidating college loans, you will also have a much lower monthly payment, thus reducing your debt to income ratio.

Reduce debt to income ratio by refinancing college loans

Refinancing student loans can shave as much as 52% off of your monthly payment by extending the repayment period. This can make a huge difference in your cash flow each month. When creditors consider whether or not to lend you money, they will consider your debt to income ratio, which is the amount of income coming in compared with the amount paid toward bills each month.

A typical student with a $300 per month student loan payment can save as much as $200 per month by consolidating student loans. This savings can certainly make the difference between securing a loan for a car or other necessities. A favorable debt to income ratio can also help you to secure lower interest rates on new lines of credit which can literally save you thousands of dollars over a lifetime.

Reduce dependence on high interest debts by consolidating student loans

Many young professionals just out of college turn to high interest credit cards to help them get through the period where expenses are high and their careers are just ramping up. The average college student carries 6 credit cards with a combined balance of around $2100. These high interest credit card debts can really put a strain on your finances and limit your capacity for getting 'good' credit.

By consolidating student loans, borrowers can free up several hundred dollars in disposable income and reduce dependence on high interest credit cards. The savings can be used to pay off high interest credit card debts accrued during college. Paying off just $200 per month above the minimum could more than pay off the average college student's credit card balance in just one year.

College loan consolidation is simple and extremely fast now thanks to the internet. By consolidating student loans today, you could save yourself several hundred dollars by the time you make your next loan payment.

How to Apply for Student Loans

Initially applying for student loans can seem overwhelming, but when broken down into clearly defined steps, the process is fairly simple and straightforward. Today every piece of the student loan application process can be handled online, making the process easier and faster than ever before.

Step One: Understanding your Financial Need

Using the Ed-Loans Wizard ®, enter the names of the schools you are applying to for an estimate of your costs for tuition, books, living expenses, etc to understand your financial need. Next use the Education Loan Marketplace ™ tool to compare the costs of different schools and get suggestions on the most appropriate student loans for you.

Step Two: Applying for Student Loans:

Stafford Loans are the most popular student loans and the best place to start when applying for student loans for both undergraduate students and graduate students. If Stafford Loans won't cover your expenses, there are other options such as private student loans, and PLUS loans for parents. There is generally a 30 day waiting period before you'll learn about your eligibly for student loans.

Step Three: Present your eligibility report to the school of your choice

After your student loan application is processed, you'll receive a SAR (Student Aid Report) showing the amount of federally backed funding you are eligible for. If you haven't already applied to colleges because you've been waiting to learn about your student loan eligibility, now is the time to do so. Once you've received your SAR and college acceptance letter, you're ready to start school.

The student loan process can be a very simple process once you understand the basic steps. ScholarPoint has partnered with Colligate Funding Services (CFS) to make the process of applying for student loans even simpler and more straightforward.

What is a Parent's Role in Financing Education?

College costs are up along with the cost of living—how are today’s families able to afford college? With the cost of college rising faster than the rate of inflation, paying for college has become increasingly difficult for many students. The “pull-yourself-up-by-the-bootstraps” philosophy of previous generations is more difficult for a young person today without a boost from family. College, once seen as the great equalizer because anyone could attend and increase their earning potential, is now being called the great divider.

Many middle class families find themselves in a predicament when it comes to paying for college. The government assumes that many families earn too much to qualify for loans. However, many of those families are struggling to pay steep mortgages and keep up with the sharply rising cost of living.

The assumption that college costs are unaffordable has become so widespread, that many families don’t even attempt the student loan channels. “I just figured that we made too much and that he wouldn’t qualify for student loans,” says Karen Reece. When her son Dustin graduated last spring, they planned on community college. “We can’t afford University tuition right now,” she says “but I just figured there wasn’t any other way.”

Enter the PLUS loan (Parent Loans for Undergraduate Students). These are low interest loans, guaranteed by the Federal Government, and don’t require collateral to secure. Repayment can be deferred until your child has finished school and once that time comes, PLUS loans offer flexible payment plans.

PLUS loans are credit based loans and can be used to fund your child’s entire education. Instead of taking out a home equity loan or trying to secure a bank loan, Karen can apply for a PLUS loan and enjoy a fixed interest rate of 8.5%. Once Dustin is out of college, she’ll have between 10 and 30 years to repay the loan.

So many of us intended to save for our child’s education, but with the strain of a fast-rising cost of living, real life doesn’t always play out the way we intend. PLUS loans are a smart way for parents to help their children through college without leaving them with debts that can be astronomical in proportion to starting wages in a new career.

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You understand the benefits of consolidating student loans such as lower monthly payments and the ability to pay a single bill rather than writing 5-10 different checks each month. But what exactly is the process of consolidating student loans?

Student Loan Consolidation: Overview

Because of the additional benefits of federal student loans, federal and private loans must be consolidated separately. If you have both types of loans, it’s recommended that you begin

by consolidating your federal student loans first, as this will result in the greatest cost savings.

Step 1: Verify your current loan standing

Your current student loans must be in good standing and not in default status. If they are, you’ll need to make the payments required to get them paid up to date before consolidating student loans.

Common questions and concerns:

Q. My loan is in forbearance or deferred; is this considered being “in good standing?”

A. Yes, as long as you have not defaulted on your loans, you can consolidate with ScholarPoint.

Step 2: Gather required information

You’ll need the contact information of 2 friends or family members and the names and addresses of your current loan companies. To save yourself a step, ScholarPoint can instantly access all of the necessary information about your current lenders from the National Student Loan Database system during the application process with your permission.

Common questions and concerns:

Q. Will those I list as references be responsible for paying my loan if I default?

A. No, your references are not cosigners. Like any lending institution, we collect reference information just in case we can’t reach you by mail or phone once you have a loan with ScholarPoint.

Step 3: Apply online

It’s important to note that just because you submit an application with ScholarPoint to consolidate student loans; this does not mean that you’re required to accept the loan. If, and only if you like the rates and payment terms, you can electronically sign for acceptance of the consolidation loan via ScholarPoint’s secure system. If you’d prefer to physically sign the application, you can print, sign, and mail it directly to ScholarPoint for processing.

Common questions and concerns

Q. The application asks for my social security number, will you run a credit check to consolidate my federal loans?

A. No – there is no credit check required at any point during the process of consolidating federal student loans.

Tuesday, April 14, 2009

Direct Student Loan Payment

Direct student loan payments are debited from the borrower's checking or savings account by the lending institution each month on the due date. With all the stress of daily life, direct student loan payment plans take the worry and hassle out of remembering to make the payment each month. Of course, the borrower must sign an authorization form, which provides account information in order for the amount to be debited.

Having the option to pay directly will eliminate the need for paperwork. Receipts will be sent via email to allow the individual to keep up with when and how much the bills are. Also, the individual will not have to write a check or keep up with payment stubs when they have the ease of direct student loan payment. If someone is concerned about not having a paper receipt for direct student loan payments, they can keep bank statements as proof that the money was debited from the bank account. If at any time the person wishes to cancel this service, most lenders require written notice. The individual should be sure to do this in plenty of time before the next bill is due.

Many students are fortunate enough to have their parents to repay the amount owed to lenders for educational purposes. It might be the case that the parents will pay the bills until the child graduates and gets a job. At that point, the student will assume the direct student loan payments. Some lenders offer incentives for utilizing the direct student loan payment as the primary method of repayment. This service will ensure that repayment is completed on time and many lenders offer interest rate reductions if the individual is not late over twelve month periods.

If an individual takes advantage of a direct student loan payment or other such programs that will reduce the interest rate each year, they can significantly reduce the amount of interest that they will pay over the life of the loan. The easiest way to make sure the debt is paid on time is by using direct student loan payments. It is one less thing for a person to remember and they can rest assured that you are doing the right thing in paying what they owe on time. "Finally, brothers, whatever things are true, whatever things are honest, whatever things are just, whatever things are pure, whatever things are lovely, whatever things are of good report; if there be any virtue, and if there be any praise, think on these things." (Philippians 4:8)

Direct Student Loans Consolidation

Direct student loan consolidation organizations vie for a student's business in this day and age when the major source of funding for a higher education is through educational lending. Every year a college attendee must reapply for borrowing, and many times throughout a student's educational career, their college lending is bought and sold, resulting in a mess of different options, a variety of payment amounts, and repayment schedules. Direct student loans consolidation can ease the burden of such disarray and allow the borrower to make just one monthly payment to one lender.

The most popular consolidating organizations are those that receive guaranteed government funding. Some private direct student loan consolidation groups have insurance from organizations up to a certain limit, and therefore must allow certain restrictions and limitations with their deferment options and repayment terms. The best organizations allow for deferment periods indefinitely while a student is enrolled in school. Some direct student loans consolidation require that a college attendee be enrolled in a degree seeking program not to exceed 4 years, while others allow a flat 3 year deferral and never more.

Government sponsored and guaranteed programs allow repeat consolidating if the student takes out another amount at a later date to pursue their education further. When this happens, a new loan is formed, including the offering of a new deferment period. This deferment period is especially essential to borrowers and could make the difference in selecting one direct student loans consolidation program over another, far more than the interest rate. Borrowers opting for a better deferment or forbearance period should stay within the government guaranteed participating lenders. These lenders offer no time limitation of in-school deferment periods, as long as the student is enrolled half time, and as long as the school participates in federal financial aid programs.

These lending programs utilizing the governmental guaranteed program do have maximum limits. These limits can be stretched into a repayment term not lasting longer than 25 years and usually carry the absolute lowest interest rates. Students choosing the government direct student loan consolidation programs need to be aware that just because the government guarantees the program, doesn't mean the government is responsible for repayment. When a Christian borrower makes a promise to pay, that promise is first to God. The Bible says in Ecclesiastes 5:4-5 " When thou vowest a vow unto God, defer not to pay it; for He hath no pleasure in fools: pay that which thou has vowed".

Student Loan Default

A student loan default happens because of a non-payment of educational debts that are to collection agencies, starting the beginning of a bad credit record. It is important to know that there is a choice to arrange for a student loan default and therefore avoid further problems. There are many situations that can arise unexpectedly, but do not have to cause bigger and bigger problems with debt if the problem is addressed head on. Knowing how to do this is the first step to making sure credit does not get tarnished.

Whatever the reason for non-payment of the debt, it's important to understand what will happen. When student loans default, the debt will still incur interest, but the responsibility for payments won't be there. This helps people when they are in real financial strife. If default occurs because of nonpayment, aside from the report going to a collection agency, the credit score will be adversely affected as well as the possibility of having to pay grants back that were previously gifts.

An easy way to avoid default is to make sure to have a realistic budget and follow it. This means making room in the budget for loan payments. If a budget can be created and followed, default can be avoided. Any steps taken to avoid letting student loans default is the best decision that can be made. If that means having to cancel spring break or walk to class or work, instead of driving, then this is what needs to be done. If student loans default then they can affect life for a very long time.

If there is no way to avoid letting a student loan default, speak to a financial professional. This person should be able to advise where the budget comes out short and how small lifestyle changes can be made in order to meet financial goals. It would be a smart thing to meet with this type of person before being forced into student loan default. This will help to avoid problems that can show up on the credit report. Also be aware that there may have been charges and fees added to the debt account to prepare the company for surviving nonpayment. Remember that we are entrusted with the amount of money that God believes we can handle and if we listen to His direction we will prevail. "But seek ye first the kingdom of God and His righteousness and all these things shall be added to you." (Matthew 6:33)

Government Student Loan Consolidations

Government student loan consolidations are offered to anyone who has obtained more than one college assistance amount over the course of the college years allowing them to combine multiple accounts and make one monthly payment. These are accessible to students who have unsubsidized and subsidized aid. A government student loan consolidation is a way to make paying back the college aid easier and more convenient. Most undergraduates end up borrowing thousands and thousands of dollars in college assistance. Within six months of graduating, the graduate has hopefully found a job, it is time to start paying all of their borrowed assistance back. In most case, the graduates are feeling the stress of paying loans back in addition to normal living expenses. It can be very overwhelming.

It is trouble-free for a graduate to apply for a account grouping. Typically this can be done by contacting a lender online or by making a simple phone call to get the ball rolling. There are millions of companies that are thrilled to get into the business of government student loan consolidations. Once the company has been notified of a graduate who is in the market for a government student loan consolidation, the company will then evaluate all of the different lenders to whom the graduate owes money to. Before applying for any consolidations, here are some important things to consider. What is the total amount owed between all college loans and is the company willing to combine all student loans?

Borrowers should make sure that there is not one loan left dangling behind. That would defeat the purpose obtaining account consolidations. Another very important matter to think about is interest rate. It is an excellent idea to lock into a fixed rate for reassurance that monthly payments will remain stable. After all, the big incentive with a government student loan consolidation is to save money and make life a little easier. When government student loan consolidations are issued, it is a possibility that the result can drastically increase the total cost of repaying the amounts while presenting lower monthly payments giving borrowers up to thirty years to repay their loans.

However be careful, with many more payments, the borrower could wind up paying a large amount more in interest over time. Carefully figure out if there is a possibility of losing any borrower benefits such as principal rebates, balance cancellation benefits or interest rate discounts. Government student loan consolidations have a few appealing benefits for the student also, so it is important to weigh pros and cons. Of course, the best deal is to save money and avoid making five or six different payments each month on borrowed financial aid, but make sure to fully research each lending company before obtaining government student loan consolidation. "Fear thou not; for I am with thee, be not dismayed; for I am thy God: I will strengthen thee; yea, I will help thee" (Isaiah 41:10).

Student Loan Consolidation Rates

Student Loan Reconsolidations

Student loans reconsolidation is possible, but may be difficult if the borrower has already consolidated their balances. Some of the financial aid institutions are not in agreement with the possibility of refinancing consolidation balances. A student loan reconsolidation may be necessary in order for a scholar to obtain a lower interest rate to make the repayment affordable. Taking out personal financing is one option available. If a borrower has any sort of collateral, this avenue may be beneficial. If the scholar is still in school, looking for federal or private grants to assist in the repayment of the funding is appropriate. Within financial aid institutions, they cannot consolidate Federal funds with private ones. This also may be another reason to look elsewhere for a lending institution that can consolidate both types of student aid.

Reconsolidating may even be avoided if a scholar is involved in some targeted professions, such as some medical, legal or teaching professions. There are programs for these professions that will pay all or part of any educational balances and the borrower can avoid the hassle of student loan reconsolidation. Some of them require the borrower to remain in a position for a certain amount of time, or pay off the debt. In looking for student loans reconsolidation, looking for a fixed interest charge will give some certainty that variable rates will not. Checking for extra fees and prepayment penalties is also advantageous. The best benefit is, of course, lower interest rates. Comparison shopping can be done easily with the Internet. An applicant can get multiple quotes for financing and have them within minutes. Looking around for the best rates and best terms is much easier if done online.

Being in the situation that may require a creative approach to repayment can be worrisome, but a little research and effort should find the borrower exactly what they need. "labour not to be rich: cease from thine own wisdom. Wilt thou set thine eyes upon that which is not? For riches certainly make themselves wings; they fly away as an eagle toward heaven" (Proverbs 23:4-5). If a borrower is not yet in that position, thinking ahead and applying for grants instead of loans, that must be repaid, may be the way to go. There are thousands and thousands of dollars available in federal and private grants for students and this can help avoid student loans reconsolidation. Those that do choose to combine all of their balance into one single debt should certainly do so with a student loan reconsolidation because to date, they offer the best fixed interest rates out of any other funding source.

Student Loan Consolidation Companies

Student loan consolidation companies help graduates consolidate their financial aid obligations into one amount at a reasonable interest rate. Typically, college students finish college with multiple loans. A lot of these loans are from different lenders and are at different interest rates. With a student loan consolidation company, students can change five payments into one and possibly cut down on the overall total they are paying each month. For this reason and more, it can be very helpful for graduates to work with lenders to consolidate.

Before finding a student loan consolidation company, it is important for the individual to gather all of the information on their debt. They should know the lenders, terms of agreement, monthly payments, and interest rates for each. The graduate will have to provide this information to the student loan consolidation companies. Also, they will need to know this information to compare offers and quotes to the rates and terms on the current obligations. It is important to aim for an interest rate that is lower than current rates. The individual should be prepared to have their credit checked along with employment status verified. Applying with a lender to consolidate payments is just the same as applying for any loan. The lender wants to know that the individual is reliable and not a risk.

A person will probably want to begin searching for lenders that offer the option to consolidate before graduation. The college financial aid office can recommend a good lender. If possible, the individual should plan to consolidate as soon as loans come due - typically, payments begin six months after graduation. If the graduate is far beyond that point, they can still call the college's financial aid office for advice. Asking friends, former classmates, and other graduates which student loan consolidation companies they have chosen, will also provide some help and insight into a good service to pursue.

The next step to finding student loan consolidation companies is to check on the Internet. Many states have college foundations or education information websites. These are particularly helpful when looking for a lender referral. Also, an individual can use a search engine to find a national student loan consolidation company. There are more than enough choices available. It is important to be discriminating when choosing the best one. The individual should be very concerned about fees, rates, terms, and penalties that are included in the consolidation process.

Working with a student loan consolidation company is probably one of the wisest choices a person will make coming out of college. This can save hundreds of dollars in interest and possibly shave years off of the terms of current obligations. The key is to work hard at paying off the education debt that has accrued over time. The individual must realize they made a promise to repay the debt by signing promissory notes. "Sanctify them through thy truth: thy word is truth" (John 17:17).

Consolidate Student Loan Debts

To consolidate student loans is a great opportunity for college graduates to repay lenders and provides the option of possibly pursuing a lower interest rate and even one, smaller monthly payment over a longer term. Consolidation offers a major negative aspect which is the possibility that the borrower will actually pay more over the repayment term because of a variety of issues that may arise.

Consolidation should be considered and completed if it will provide a lower interest rate. If the interest rates on current loans are lower than the consolidated amount, however, there would be no need to consolidate student loans. The consolidation process provides a great opportunity for students, especially those just out of college with no job or limited resources to fund the payments.

Many college students, with lenders that need to be repaid, have a wide variety of payments. By choosing to go ahead with consolidation, the payment is often stretched over a longer period of time, allowing for more payments at a much smaller amount than originally thought. To consolidate student loan allows the individual with payments to focus on saving money or putting the money toward other bills. This is the wise thing to do. "Wisdom is good with an inheritance: and by it there is profit to them that see the sun" (Ecclesiastes 7:11). After college, graduates can expect some time to pass before they find the perfect job. Any extra cash after they consolidate student loan will be helpful to staying afloat until the right job is available.

Consolidating may not be the most ideal option in all circumstances. When loans are consolidated, the interest rate does usually drop, but it provides a longer period or term of repayment. This longer period is usually twice as long as the original, often making the amount of total repayment of the consolidate student loans much higher than it would be without consolidation.

Consolidation is something that should be considered by college graduates with lenders to repay. In some circumstances, it is a great idea. Lower interest rates can be very appealing. Smaller monthly payments is also a great feature. To consolidate student loan may not be the best choice if the amount of money repaid over the period of time is greater than it would be without consolidation. The choice for consolidation will vary on a case-by-case basis, depending on the terms both before and after consolidation.

Student Consolidation Loan

Student consolidation loans are often the smartest move a borrower can make if over laden with college debt. A student consolidation loan is designed to help students who have borrowed to simplify their repayment by combining several types of federal aid with various repayment schedules into one balance. The entire amount is then given a fixed rate with one monthly payment. Student consolidation loans can lower the total interest paid and possibly save up to 60% on the monthly payment. Some rates are as low as 4.750%, giving a savings of up to 1.25% and can be locked in for the life of the repayment. In addition to monthly savings, this option may be able to rescue the borrower if in default on borrowed financial aid.

Based on personal circumstances, these conjoined accounts can help match a repayment plan and term to fit an individual's ability to repay them. Student consolidation loans are available for most federal aid such as Stafford and Perkins, NSL and Direct Student Loans. If private lenders' assistance funds are used to finance an education, generally, they cannot be consolidated along with federal aid. Student consolidation loan rates are not available to include private education assistance. There are, however, private programs for other options available.

When considering which lender to use, it is important to shop around as there are often special discounts offered for electing electronic payments and for several years of payments on time. When looking for the best deal on a student loan consolidation, first find out if the interest rates are fixed, as variable rates can cost more over the life of the repayment period. With fixed payments on a student consolidation loan, the certainty of regular payments is guaranteed.

One year, college enrollees and parents took out 1.6 million in financial aid borrowed totaling 43.7 billion dollars, according to figures from the United States Department of Education. Student consolidation loans are almost always the best way to go. If the graduate has an employer such as law enforcement or some of the health industries that is willing to repay their financed college aid, then that is the only time a student consolidation loan wouldn't be in the borrower's best interests."The eyes of your understanding being enlightened;that ye may know what is the hope of his calling and what the riches of the glory of his inheritance in the saints" (Ephesians 1:19).

Student Loans For Bad Credit

Student loans for bad credit are available and accessible for people who are attending college and are in need of financing, but have little to no history with debt or a less than desirable history with debt. The Stafford program offers financing that anyone can obtain, regardless of debt history. A student loan for bad credit can help an individual gain an education, get a better job, and therefore eventually repair his or her borrowing history. The U.S. government funds this type of financing in the form of direct funding, also known as Stafford. Many students rely on this money in order to help finance their college education. A Stafford offers excellent advantages including simple qualification guidelines, very competitive interest rates, and flexible repayment plans. If a scholar is attending or planning on attending college, but are concerned that their poor repayment history (or nonexistent borrowing history for that matter) will keep them from qualifying, think again. "Labour not to be rich: cease from thine own wisdom. Wilt thou set thine eyes upon that which is not? For riches certainly make themselves wings; they fly away as an eagle toward heaven" (Proverbs 23:4-5).

Stafford financing is available and accessible to most scholars in need. Although there are a few requirements that a borrower needs to meet in order to obtain a student loan for bad credit, none of the requirements have anything to do with income or debt related issues. Stafford comes in two versions: subsidized and unsubsidized. The funds for the subsidized come directly from the federal government. The interest on these student loans for bad credit is paid (subsidized) by the U.S. government. Students pay the interest on the unsubsidized themselves, but they can opt not to pay anything until they have completed their schooling. To apply for one of these government sponsored programs, an applicant need to file the Free Application for Federal Student Aid (FAFSA) form. Although approval of the unsubsidized portion is not linked to financial need, the government still needs to get a completed form.

One can find this form online or in the college's financial aid office. All lenders offer the same variable interest rate for Stafford financing and the rate is currently capped at 8.25%. However, a borrower may find it beneficial to shop around before signing a promissory note because some lenders offer slight discounts if, for example, the applicant agrees to automatic online payment withdrawal. In addition to student loans for bad credit through the Stafford program; many banks, credit unions, and other lenders offer supplemental, private programs that might be worth exploring. Don't let a history of poor financial decisions stand in the way of pursuing a college education. Instead, take advantage of a student loan for bad credit and plan for a better future! Attending college and preparing for the future is exciting. Be sure you plan the financing of a college education wisely. Speak with the college's financial aid officers and a tax adviser or accountant if there are any questions about qualifying for the myriad of programs available to scholars.

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