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Monday, April 4, 2011

Tips on How to Get the Best Student Loan Consolidation Rates

Many students are facing tremendous student loan debts. If you find yourself seriously considering consolidating your various students loan into one, here are some important tips that you have to consider in getting the best student loan consolidation rates.

What is a student loan consolidation rate? It is one of the most important factor that will determine the cost of borrowing money that will assist you in getting a higher education. Different companies offer different rates. Before you make any decision which institution where you want your loans consolidated, you have to analyze the interest rates they offer.

First, the rate in compounding the various loans should be lower than any of the individual loans. It would definitely be to your advantage if you can get the lowest interest rate there is. As you compound these loans, you will be getting one single loan with a single rate and a single payment every month. Depending on how long you want your repayment period to be, it will help you determine exactly how much you will be paying as a whole. A lower interest would mean a lower total payment.

Interest rate use to consolidate your loans should be fixed; meaning the rate you started out with will remain the same for the whole period of the loan. It is unavoidable due to the market trend that interest rates will go up in time. So even if you take advantage of a more competitive rate, there is a chance that it will increase and you will end up paying a bigger amount of money. You wouldn't want this to happen. Securing a loan with even the slightest difference in interest rate can save you money.

While shopping for consolidating firms, it is also to your advantage if you can ask for additional benefits from lenders. There are some who offers extra bonuses especially if you are up to date in payment or you signed up for an automatic withdraw payment from your savings or checking account. These slight interest rate discounts can be helpful in saving you money while you pay off your loan.

There are many lending institutions who offer consolidation as a means for you to get out of your financial setback. However, it is still to your advantage that you should take the time to scout for one that offers a competitive interest rate that will save you money in the long run.


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College Loans Consolidation In Practice

The financial situation of a borrower could be unsettling when there are different loans from different sources with differing conditions to each of the loans. This situation is typical of college graduates who depend on educational loans to finance their college education. This is because college education can be very expensive where there is not much support from parents or where such support is inadequate and an educational scholarship is inaccessible, it becomes necessary for funds to be taken from other sources, and the most feasible is taking a loan.


In such circumstances, the best decision is loans consolidation which means surrendering all the loans to one loans provider. The chosen company pays the other existing loan providers and enters into a fresh agreement with the debtor. This enables the one who takes a loan to enjoy the benefit of having all the loans under a single management and also to have the opportunity to negotiate better interest rates. A longer period for loan repayment would obviously result in reduced amounts of monthly repayment. Also, a negotiated interest rate could reduce the interest rate and bring down the total amount to be repaid. Thus the borrower is given financial relief and is able to cater for other necessities thus improve the quality of life after graduation.


To achieve the best out of college loan consolidation, the loan consolidation company (the lender) has to be chosen carefully. The choice has to be made from a pool of other similar companies after some details have been carefully considered. They include the previous financial history of people behind the company in terms of integrity. A dubious company could change the rules mid-way and thereby give room for conflict. Also, the interest rates and repayment periods among the companies under consideration must be compared. The client may have to use the services of advisors or relevant agents in arriving at the choice of company.


Conclusively, loans consolidation is one choice open to those who still have college loans to repay in order to avoid embarrassment, sustain enthusiasm at work, and ensure that hopes and aspiration of a good life after graduation are kept alive.


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Guide to Consolidating Student Loans at a Fixed Rate

Does school never end? If you are like many former students, you may be struggling under one or more private student loans. One way to save yourself some money and some hassle is bringing all your private student loans under one fixed interest rate plan

Gaining Control

What if all you private student loans were rolled into one bundle? Then you would have only a single monthly payment, to a single lender, at one a single day of the month, at a single fixed-rate interest, and with a single maturity date, or pay-off date. Cool? Yes? Yes.

Lower Payments

If you are smart, when you approach a lender to consolidate your loan, you will finagle a good fixed low interest rate. And your payment to that one lender will be substantially less than the two or multiple payments you were wrestling with earlier, especially if you extend the maturity date.

Fixed Rates

Many student loans when made initially had interest rates that fluctuate with the expediencies of the lending markets and prime rate considerations. With a fixed interest rate, you do not have to worry about the markets. Once you have a rate locked in, your loan stays at that interest rate through the life of the loan. This means no unexpected surprises for your monthly budget.

Credit Rating

Here is another factor in favor of private student loan consolidation -- it can improve your credit standing. Having a bunch of outstanding debts on your credit report does not look too red hot to prospective lenders. What looks really good is a number of debts responsibly retired. With a private student loan consolidation, a better score can be yours.

Federal Student Loans

One downside is that you will probably not want to pull your federal student loans into the same consolidation package, because federal loans usually carry terrific interest rates that may be hard to duplicate in the private lender sector. If you have one or more federal student loans, you may want to consolidate them first. A private lender who sees that you are managing your finances well by doing that, will probably be more willing to lend you money to cover your private loans.

Credit Cards

If you are like most students, school perhaps caused you to incur rather hefty balances on one or more credit cards. If you can prove that those debts were education related, you can probably have those included in your private student loan consolidation plan as well. Your lender should be willing to work with you on this. This would be quite helpful because credit cards carry pretty high interest rates. Again, getting these off your credit report with a paid-in-full designation will only help your credit record.

Negotiating Your Interest

If you are really wise, you will go online and download a free weighted-interest rate calculator. Take it and enter the interest rates and other details across all you outstanding private student loans. This will give you an average of what you are paying in interest. This gives you a negotiating point. You want to get at least the interest the calculator specifies, but talk your way into one lower if you can.

Worth The Effort

Consolidating your student loans may seem like pretty much a hassle. It is worth it just in terms of piece of mind and bringing a little order to your financial life. Of course, what is wrong with having a little bit better cash flow in any given month? That alone is reason enough to opt for consolidation.


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Private Student Loans - Considerations For Consolidation

If you have outstanding private as well as federal student loans, to take advantages that each has to offer, when you consider consolidation you should do them separately. Federal loans usually have lower interest rates, so consolidating them is another sort of ball game.

Consider That They Are Rolled Into One

The amount of your consolidation loan is not a big issue, it simply reflects the amount you need to pay off all of your private student loans. This is a figure you have probably had in the back of your mind anyway. It is what the cost will be so you will have a new single payment. But, understand, that the single loan will probably require far less for each monthly payment than you are making for the sum of two or more other loans that you may be presently carrying.

Consider The Benefits

What you are basically doing is having one payment, to one lender, on one day of the month, at one interest rate, at one payoff date. Having different payment amounts, to different lenders, due on different days of the month, at different interest rates, with different pay off dates, well, you will save money on postage and envelopes alone.

Consider Your Weighted Interest Rate

Speaking of interest rates, if you have been paying your various loans regularly, you should be able to get an interest lower than that of your various loans. If you have improved your credit rating by just 50 points, you should be eligible for more competitive rates. Online you can find weighted interest rates calculators that will give you an average of the interest rate among loans you are presently carrying. This will help you negotiate a reasonable interest when you go for your private student loan consolidation.

Consider Your Current Lenders

Although it is prudent to shop around for the best rates on consolidating your private student loans, you may want to speak to one of your loan holders you are presently paying. They may be more than willing to work with you. Nevertheless, be armed with quotes from other lenders so you have some ammunition when you negotiate the consolidation. Actually, no matter who you negotiate with, it is good to have quotes from others.

Consider a Home Equity Student Loan Payoff

Another way to pay off all your outstanding private student loans would be getting a home equity loan. If you have considerably equity in your home, you could borrow against that equity to pay off any standing student loan amounts. One good thing about this approach is that you can usually lock in an interest rate rather than having to deal with a variable interest rate that is somewhat common in the student loan consolidation market.

Consider the Future

Just because a lender may agree to consolidate you student loans, do not let them think that they are doing you a favor. It is the other way around. You are doing them a favor by giving them your business. Before you sign anything, make sure the terms, rates, and conditions are comfortable. Once you get your private student loans cornered and manageable, you will want to start thinking of ways to reduce the burden of any federal student loans you may be struggling with.


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Sunday, April 3, 2011

Tips for Student Loan Repayment

College and other higher education options is an expensive cost. In order to attend a school of higher learning, most students will require a loan. Since added stress can make school hard to concentrate in, the student loan repayment plans can be much easier to deal with than others. Repayment is usually not required until months after you are out of school. Students also tend to get a much better interest rate with a student loan than with other loans. The federal government will also work with the student on a loan settlement if things get too hard to handle. These all combine to make for good loan repayment plans.

The best thing about student loan repayment plans is that they generally don't require repayment until after the student has left school. This includes leaving the school early as well as fully graduating. Since the government is taking a chance on the education of a student, they are figuring that the student is serious about their education and wish to finish their entire schooling. School can be stressful as it is, and most students don't earn a lot of money while attending school. So the repayment plans allow the student to not have to worry about paying back the money borrowed until they have the chance to look for a good job. Nothing is required during the time attending school.

Another good thing about student loan repayment is that the interest rate is generally better than most other forms of loan. The federal government knows that in order to boost the economy, payments for student loans has to be within the reasonable ability of the student to pay it back. By using the lowest interest rate possible, the student will have a greater chance of being able to pay it back with ease. This is a perfect win-win situation since the government still makes enough money to justify loaning the money, while the student is able to save enough money to make the loan an attractive option for completing school.

Student loan repayment allows for a loan settlement option, if things seem to get too difficult to handle. The loan can still be difficult to get control of, even with its superior options. Even people with the best intents, who are in a better position, can find repaying a loan tough. So the government allows for the option to settle the loan. What this means is that after being late for a certain amount of time, the student can offer to pay off the entire loan at a reduced rate. This is normally about 20-30% of the original amount of the loan. This will make the student's credit rating go down a bit, but it will complete the student loan repayment process.

When deciding to continue with higher education, it may be a good idea to look into the options available for student loan repayment plans. Payment usually isn't required to begin until several months after the student completes school. The interest rate for a student loan is usually much lower than most other types of loans. If things get too hard to handle, the government will normally work with the student in order to agree on a loan settlement. These all combine to make the option of securing a student loan repayment plan a very attractive idea.


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Let's Count Your Monthly Installment Right Now

If you are a college student, odds are you've a good deal of student loans. The average college student's debt after college is $23,000. For nearly 40% of recent graduates, it may need them over ten years to pay off their current student loan debt. One way to assist recent graduates manage their student loan debts would be to consolidate their loans into one. This could save a lot of time in pay it off, and can even save a large amount of money. The easiest method to find out if this is a good option is to use a consolidation calculator.

It is a tool that will refinance your school loans into one loan that will reduce your monthly repayment by a large amount. Doing so, you possibly can save over $115 monthly on a $30,000 federal student loan. With the use of consolidation calculator, you can also consolidate any private loans you've got. On a $30,000 private student loan, consolidation will save you up to $730 each year.

Consolidating your apprentice loans with this calculator may also give you a lot more time to pay them back. Subject to your loans, you can extend the typical repayment time of 10 years up to 30 years too. And because your monthly payment will be lower, you'll have more money for things such as a car payment, housing expenses, and other little luxuries. Consolidation calculator helps you to keep your payments low and simple to make every month, this can greatly raise your credit score, which can be essential if you wish to have a nice car or apartment.

Most consolidated loans also provide no penalty for pre-payment, therefore if things are going good, you may make a more substantial payment and settle your loan faster if you want. You can do it when it is affordable for you. And all these matter can be tracked with this tool.

Like when you first got your student loan, you'll need to apply to consolidate it. Though the application process is pretty simple and straight forward, this tool can make it further simpler.

This great calculator helps you to roll up all your existing separate loans into one loan once you consolidate. Companies will purchase the loans for much less from the other creditors and thus will often be able to give you a lower rate. The negative effects might be these loans may take much longer to settle, such as the instance of changing a ten year loan repayment to a thirty year loan repayment. It can create a large amount of savings every month, but you can end up paying more in the end, since unless you make use of the no pre-payment penalties and repay a lot more than the minimum monthly payment, you've extended your loan for an extra twenty years. These calculations are tough to do without the use of student loan consolidation calculator.

It can also help you well to understand the implications of interest rates. Its interest rates can fluctuate between 4.75% up to 9% interest rates. Consolidation of these loans doesn't change the interest rate. If a student combines several types of loans and different types of interest rates into one consolidated student loan, a weighted average will be calculated and which will be used to determine the interest rate of the new consolidated student loan.


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How Can Someone Qualify For a Direct Loans Consolidation?

If you have financial problem in your family that makes you not able to get a college education you shouldn't be sad. There are many ways you can do that will help you to be able in applying college. One of them is getting student loan. For your information, there are many kinds of this financial aid. Student private loans are only one of them. If you want to apply on this help, that would be better if you take a look closely at this before.

What is Student Loan all about?

If you have no idea of what this is all about, I will explain it to you. Basically this is the same as the other loan, but it specified itself for students who want to get a higher education. Even though it is almost the same as the others, what makes it different is that it comes with a low interest of rates. You can compare it with the other, and you will see that this one comes with the lowest one.

Actually the government also provides this financial aid for their citizen. It is called federal student loans. Well, no matter goes in to you, you should think about it first and very carefully. There are some people who fit with the private and the other might feel good if they have federal.

Consolidated Student Loan

As I told you above, the needs of each person is different. You may be okay by having one student loan, but some may be need more than one or two private loans. If you have some accounts of private loans, you can try to consolidate them all. Consolidation loan means you will only have one private loan. All the loans you have will be consolidate into one. There are many advantages you can get by having this loan consolidation.

The basic thing is that you don't have to spend your time to repay the loan from this agency to the others. Your expense to repay it off will be reduced since you only need to pay for a loan. This consolidation will also help you to get a long repayment time. Usually the lender will let you to have 20 to 30 years of repayment. Unfortunately, this is only for those who are single. If you are married student, you can't apply for it.


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Student Loan Default Rates on the Rise

Updated statistics released by the U.S. Department of Education show that student loan defaults are rising. According to the latest figures, the default rate for government loans that entered repayment in 2008 is 13.8 percent, up 2 percent from the default rate for federal student loans that entered repayment in 2007.

The current official national student loan default percentage, which stands at 7.0 percent, measures the percentage of borrowers who default on their federal education loans within the first two years of repayment. But when the calculation is expanded to take into account defaults within the first three years of repayment, the national student loan default percentage jumps to13.8 percent.

The New College Grad: Unemployed, in Debt, and Defaulting

Under new rules implemented by the Higher Education Opportunity Act of 2008, the three-year calculation will soon be used as the standard measure of student loan default percentages. Beginning in 2014, colleges and universities whose default percentages rise above 30 percent will lose access to federal financial aid - government-funded grants and education loans - for incoming and existing students.

Current federal regulations cut off a school's eligibility for federal student aid when the school's default percentage exceeds 25 percent, but that guideline uses the more forgiving two-year default rate. Officials at the Education Department attribute the rise in student loan defaults to the soft job market and the ballooning number of recent graduates who are finding themselves unemployed and with a pressing need for debt relief.

Education Department officials also point to the growing amount of college loan debt being accumulated by students, particularly at pricier for-profit colleges and private nonprofit four-year universities. Among undergraduates who leave college with debt from school loans, the average student loan debt load is $23,186, according to FinAid.org.

Using the three-year default rate calculation, the default rate for students of private nonprofit colleges and universities is 7.6 percent, compared to a 4-percent two-year default rate. Among public university students, the three-year default rate is 10.8 percent, versus a two-year default rate of 6 percent.

The biggest jump from two-year to three-year student loan defaults is seen among students from private for-profit colleges. Using the three-year measure, the default rate among these borrowers is 25 percent, more than double the two-year default rate of 11.6 percent.

New Rules Threaten Schools' Access to Financial Aid

According to an analysis conducted by The Wall Street Journal, nearly 9 percent of higher education institutions would lose their ability to offer federal student aid if the new default rules on college loans were in full effect today. Under the current rules, only 1.6 percent of schools lost their eligibility for federal grants and college loans due to excessive student defaults.

A 2003 report from the Inspector General for the Department of Education charged that some for-profit colleges had become so concerned about the rise in student loan defaults among their former students that the schools were masking their true institutional default rates. Two high-profile cases in 2008 and 2009 charged two for-profit school with paying off delinquent student loans in order to avoid having to report the defaults, a practice that violates federal financial aid regulations.

In response to these and other barrages of accusations being fired at for-profit colleges, the Department of Education is considering other regulations that would prevent the for-profits from misrepresenting the financial health of their graduates by manipulating student loan default percentages.

In one proposed measure, termed the "gainful employment rule," the Department of Education will not only look at student loan repayment rates but also graduates' debt load from school loans as a percentage of the income these students earn after they leave school. By tying a for-profit school's eligibility for federal student aid to gainful employment following college, the Education Department is hoping to stem the spiraling levels of student loan debt at for-profit colleges, which historically have produced the highest default rates.

Student loan default rates have garnered new attention from the Education Department not only because the default rate is rising but also because the department is under Congressional pressure to produce a more cost-efficient student lending process with fewer losses from defaulted loans. The Department of Education is expected to issue the finalized gainful employment rule later this spring.


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Student Loan Consolidation From Chase: Your Best Choice

Chase is one of the leading banking institutions that caters to financial aid for students facing difficulties brought about by the various loans they have incurred while pursuing a higher education. There are many other institutions out there that give out the same offer yet, a lot of people go for Chase Student Loan Consolidation. Chase, along with Citigroup, Bank of America and Wells Fargo, make up the four biggest banks in the United States. You can definitely be assured that Chase is a banking institution that you can depend on.

JP Morgan Chase has a reported US $2 Trillion asset and considered to have the second highest market capitalization. Their financial services are offered worldwide with their headquarters located in New York City. Their financial products would include consumer and corporate banking, financing and insurance, investment banking, mortgage loans and credit card loans. If you are facing problems with the various loans incurred while in college, you would want to apply for a student loan consolidation offered by Chase. Here are the benefits in choosing to consolidate your different student loans through this reputable lender:

a. The loan product merges all your eligible student loans together into one single loan. Because of this, you only have to focus on one monthly payment.

b. You can extend your repayment period to as long as 30 years. Longer repayment period would give you a lower monthly payment. This will allow you the breathing space you need as you continue to apply for a better paying job. Lower monthly payment can also give you extra cash in your pocket.

c. Interest rate in consolidating through Chase is competitive and slightly lower compared to the combination of interest rate of your individual loans. The interest rate offered by Chase is also lower compared to other private lending institution.

d. You can consolidate 3 or more private loans from other lenders and apply any time after graduation.

e. There is no penalty if you choose to pay off your account early than the original repayment period. This is, in fact, being highly encouraged for the student to save money in the long run.

f. Your application for a student Loan Consolidation can hasten if you have a parent or other relatives or friends to apply with you.

g. Chase Bank has competent and efficient staffs that will help you in applying for your student loan consolidation.


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Saturday, April 2, 2011

Stuck With Student Auto Loans?

Car finance for students are easily accessible. Most of us are aware about the challenges of individuals looking to pay for their studies. That is the reason why there are numerous companies accessible to assist students.

Therefore you need to reap the benefits while you are in college, of reduced interest rates. Several loan providers offer student auto loan packages, providing that you verify that you're in a school, you'll be eligible for a student car loan.

Requirements for approval include the following:

Open up savings and checking accounts in order to start building a credible credit record. Most financiers are interested in students who are able to manage their finances prior to offering them loan approvals.

Consult with your credit provider whether they provide student auto loans. The best option may be to make use of the same loan provider as your parents, however be sure that your folks possess a favorable credit rating.

Complete the application for the loan. You might need an endorsement from the bank or evidence of registration for college. Don't be concerned if you're still applying for a part-time job to in the employment sections.

Ensure the that the loan provider offers you some benefits when applying for a student auto loan. Include alternatives such as a reduced rate of interest along with an extended repayment schedule as you are most likely not employed on a full-time basis. A few loan companies will provide you with an additional reduced rate when your parents cosigns for the loan.

Review the quote and include it in to your financial budget. Keep in mind that you will also be paying for fuel, insurance and other monthly bills.

Pay back your student auto loan promptly each month. This particular loan will most likely be among the first factors which will impact on your credit record. Paying your installments punctually will establish a favourable credit rating and will assist you in getting reduced rates for car loans in the future.


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How To Use Federal Student Loan Consolidation Services to Pay Off Debt

A federal student loan consolidation is something that a lot of students need. As a student there is a good chance that you have some loans out. Many students have to take out multiple loans just to go to school. Federal student loans are often what are used as long as the school that you attend accepts government funding. If this is the case, you will need the help of a loan consolidation service to help you get out of debt.


Find the Right Program
There are several different types of federal student loan consolidation services to choose from. It is important that you understand this and take the time to research them. It can get to be overwhelming and frustrating when you try to find the right program for you. It all comes down to knowing what you can and cannot afford and knowing what to look for in these particular programs. As soon as you understand these things you will be well on your way to getting the best program for your needs. The first thing to look for is if they take the types of loans that you have. Not all programs are for federal student loans.


Figure Your Payments
Using a student loan calculator you will have the ability to figure what your monthly payments will be. A lot of programs will be based on what you can pay each month. In order to successfully use these calculators you will have to know what your annual salary is. From there, you will find a monthly payment plan that will still allow for you to take care of your other monthly responsibilities. The payments have to be ones that are going to sit well with you financially. It may be tempting to take higher payments to pay the loans off faster and not have as much interest rack up. However, this is a sure fire way to get yourself behind and in more debt than when you started.


Know How to Choose
It is a good idea to know what to look for with these programs. Usually, there will be consolidation fees to deal with. These will also usually only be mentioned in the fine print. Take the time to read the fine print of each of these programs so that you will know for sure what to expect. The most important thing to look out for is the interest rate. Get a good idea of how long it will take you to pay off the loans and figure out how much interest will be charged in that time. Go with the program with the lowest interest if possible. This will be what can cost you the most amount of money.


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A Beginner's Guide to Unsecured Student Loans

If you're a parent who wants to send your child to college, one of the possibilities you are thinking about to finance that college education might be by way of unsecured student loans. What are these?

An unsecured loan is any loan that doesn't call for collateral from the borrower. The opposite is the secured loan where the borrower provides collateral to the lender as a form of security against the loan in case of default in payments by the borrower. When looked at this way, the unsecured loan is riskier from the perspective of the lender than the secured loan. For the borrower, not having to provide a form of security for the loan makes it a additional attractive option for financial undertakings.

Unsecured student loans are loans those unsecured loans taken out by students or by parents in behalf of their child, normally to finance a college or graduate education. This kind of loan is well-known simply because students do not usually have any collateral for instance a house or a vehicle to supply to lenders as security. For you the parent-cosigner, the tough component about acquiring unsecured student loans is that lenders will prefer that you've an excellent credit score and have the ability to demonstrate that you've the ability to pay back the loan by having a stable job or source of income. For students who prefer to apply for unsecured student loans themselves they have to keep this fact in mind when they approach possible lenders.

If you're seeking a great lender for that unsecured student loan, regardless of whether you're a student or a parent doing so for your child, make certain you look at the annual interest rate provided by the lender. This tells you the amount of interest you will be paying over the repayment period. It will also give you an concept of how much the total value of the loan might be over time and this can help you compare unsecured student loan packages provided by the unique lenders. Naturally, the lower the annual interest or percentage rate, the better it needs to be. Nonetheless, you should also take note of the repayment period, the monthly payments you will make as well as the total loan amount that can be approved by the lender when you make your search.


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4 Things To Look For To Consolidate My Student Loans

When you find yourself asking how to consolidate my student loans it can be a frustrating feeling. Nobody likes being in debt. People will often find ways out of it as easily and quickly as possible. Whenever you have multiple student loans it is best to get them consolidated to ease your burden and help you see the big picture. With multiple loans out it can be hard to fully understand the amount you owe and what you are paying in interest to all of these places. Here are a few things to look for when comparing student loan consolidation rates.

Interest Rates
Interest rates are the most important thing to look for when it comes time to consolidate my student loans. The interest rate will overall determine the amount of money you pay when it is all said and done. A loan that has a high interest rate will cost you as much as if not more money than the overall loan. It is best to have as low of an interest rate as possible to ensure that you do not have to pay more than you should.

Student Loan Calculator
A student loan calculator can really help you wrap your head around your student loan consolidation rates. This will help you understand what you can afford to pay each month with the loan consolidation that you choose. Simply put in your annual salary and what the amount you owe is. It will help you factor in how much you will be expected to pay each month while still remaining comfortable financially.

Type of Loan
The type of loan that you have will have a lot to do with the loan consolidation that you get. There are federal loans and there are private loans. Private loans are done through banks whereas federal loans are done through the government. A lot of consolidation services can help you regardless of the type of loan you have. However, it is still a good idea to look at this before anything else.

Fees
The fees on a loan consolidation service can very easily add up. A lot of the services will also only mention these fees in the fine print. This is why it is important to read the fine print as well as the big picture stuff whenever considering a loan consolidation service. So many times fees can add up to become quite expensive. This is why it is a good idea to find the fees and factor them into the overall initial cost of the loan consolidation service. Most of the services you come across will have these fees. It is up to you to find a fee that will cost you the least amount of money overall.


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3 Ways College Student Loans Consolidation Can Make Your Life Easier

A student loans consolidation service can make your life easier in several different ways. Many people that have gone to school will have multiple student loans to tend to. This can cause your stress level to go up and your credit rating to go down. There are plenty of student loan consolidation programs to choose from. As long as you choose the right program you will soon see how it can make your life so much easier both financially and stress wise.


One Lump Sum
Whenever you have multiple loans to sort through it can be difficult to see the big picture. One needs to have the ability to understand what they owe total and have one set interest rate to deal with. With student loans consolidation it is going to be a lot easier to wrap your head around what you owe total and focus on paying everything off. One lump sum means one payment a month and all of your loans are caught up for the month. Anybody that has multiple loans knows that it can be a headache to worry about paying each loan throughout the month. It will make things a lot easier on you when you no longer having to worry about if you will have enough money for the minimum payment after paying the other loans.


Less Interest
Interest can be a real headache. A lot of the student loan consolidation programs out there will work with you to get you a good interest rating. Interest can easily wind up costing you more money than the initial loan itself. This is why so many people opt for a consolidation of their loans as opposed to paying them all separately. When you pay a lot of different interest amounts on different loans it can be very easy to have to pay double and even triple the amount of the loans that you pay. The best way to know for sure that you get a good interest rate is to check what you are currently paying on all of your current loans. From there, look for a program that can offer you a similar interest rate to the lowest amount you are currently paying.


Increased Credit Rating
It is no secret that debt can hurt your overall credit rating. You have to have a good credit rating if you want to purchase a house or a car or get another loan in the future. Student loan consolidation can help you pay off your debts a lot faster and easier. The faster you can pay off a debt in full the better your overall credit rating will be. An increased credit rating can make anyone's life a lot easier.


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An Overview Of Great Lakes Student Loans

Student loans are no wonder a profitable business and that's probably one of the major reasons why the educational fees are almost touching the sky. Aspiring students are keen on continuing their studies and somehow bearing the expenses of their education while the loan providers are on a constant look out for finding the students who need financial assistance. Now the Great lakes student loan, in simple terms is a way to help both the sides; the students as well as the loan providers.


Opportunities For Borrowers And Lenders:
Great lakes basically make all the federal loans accessible to the students via the Government's Federal Family Education Loan Program. It also offers Stafford loans which provide the students with some extra cash as well on yearly basis as long as he/she is studying. Moreover, since a lot of loans are Government funded so the students are relieved of paying interest charges on these loans as long as they are in college. This consequently takes the financial burden off the students since Government in this case pays the interest in place of students till the student finishes the college and gets capable enough to pay back the loan with interest. In case however, your loan is not funded by Government, it would be better to pay the interest while you are in college as it will save you from paying accumulated interest amount at the end of your education period.


It also provide federal loans like PLUS loans which are actually provided to the guardians of the student during the 4 years of undergraduate education period as well as to post-graduate along with the Stafford Loans. You do not need to worry about having a superb credit history to get these loans since even a less-than-perfect credit history can do well because it can be compensated with a co-signer. It basically by managing the FFEL student loans provide an opportunity to the individual lenders to enter this FFEL market.


Financial Assistance:
This lending organization along with all these loans also offer private student loans to bring together the financial demands of students and the profit garnering opportunities for the lenders. These types of loans help the students in meeting the growing financial demands of their education which a simple Government funded loan cannot bear.


Invaluable Services:
This lending institute, no wonder is rendering invaluable services to not just the aspiring students and the lenders but also to the society as a whole since it is helping in providing financial assistance to the students who will make a difference in the development of a nation afterwards. They have also made available booklets, guides and use online resources to spread awareness to the aspiring students regarding the advantages of obtaining a degree, plus provide loan calculators and give thorough loan info to the lenders, colleges and campus counselors etc.


Developing The Society By Assisting In Education:
Great Lakes Higher Education Corporation Associates as said earlier are making a huge difference in particularly the higher education sector by helping the needy students. They work together with the colleges, universities, lending institutes etc to help the students in letting them complete their degrees without worrying about the financial costs and hence play their role in building an educated society in whole.


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Friday, April 1, 2011

Are Student Loans Still a Good Bet?

In the mid- and late-1960s, there was no doubt among U.S. public policy makers that the federal government should be encouraging more citizens to attend and graduate from college.


Bolstered by the success of the highly popular GI Bill, which paid college expenses for military veterans, federal student loans were hailed as a "GI Bill for all Americans." These low-interest loans allowed students from modest means to attend college in numbers never before seen. The college graduation rate, which had hovered around 7 to 8 percent, steadily climbed to today's rate of nearly 30 percent.


Backing the idea that higher education is nearly universally better than entering the workforce straight out of high school were statistics that showed that college graduates, on average, would benefit from as much as $1 million more in lifetime earnings than students who didn't graduate with a post-secondary degree.


At the same time, however, the cost of a college education began to rise much faster than the rate of inflation, meaning that families began to have to devote more of their overall income to paying for college costs. With annual college tuition climbing into the tens of thousands of dollars, college expenses have outstripped even generous incomes, and students have had to turn increasingly to college loans to pay for their education.


Today, about two-thirds of college students take out student loans to help pay for their education. These students leave college with an average of $23,186 in school loan debt, according to FinAid.org.


This figure is less than the average cost of a new car in 2010 ($29,217), and most new car loans are paid off in five to six years, with an interest rate comparable to the rates on federal education loans.


So why are so many people concerned about the cost of college loans?


Simply put, not all college loans are created equal.


Federal education loans are issued directly by the federal government and carry a fixed interest rate, along with flexible repayment terms and multiple options for postponing or reducing one's monthly payments based on one's financial circumstances. Federal college loans are generally low-cost, low-pressure loans.


Private education loans on the other hand, which are issued not by the government but by banks, credit unions, and other private-sector lenders, are variable-rate, credit-based loans that typically carry higher fees and rates than their federal counterparts. Private student loans also offer much fewer, if any options, for financially distressed borrowers to be able to postpone or reduce their payments.


One major difference between a new car loan and a student loan is the deferment period. With a car loan, payments on the principal begin immediately. A portion of every payment is used to reduce the balance owed.


In contrast, all federal education loans and many private education loans allow students to defer making any payments while they're still in school. The repayment of the loan can be delayed for years while the student finishes school - with no delay of interest charges, however.


Except in the case of subsidized federal student loans - for which the government will cover the interest while a student is in school and which are awarded only to students who demonstrate the most financial need - interest begins to accumulate on college loans as soon as the loans are issued, even if a student is deferring payments.


This accumulation may take place over months or years, quietly running up the balance on a student's school loan debt to alarmingly high levels.


Families concerned with accumulating excessive college loan debt can always decline to take on any school loans. Federal college loans awarded in a student's financial aid package are always optional; students can turn these loans down if they have another financial resource and don't want to take on the debt of school loans.


Students forgoing their available federal college loans at the beginning of the school year, however, may end up passing on this government money only to see their financial circumstances change unexpectedly mid-semester. In cases like these, students may be forced to turn to private student loans to bridge the financial gap.


A good strategy for college students is to first seek out college scholarships and grants and then maximize their available federal student loans before considering a private student loan. Private loans should be considered only as a last resort and only for financial emergencies that arise during the semester that other sources of financial aid can't cover.


Students should develop a clear and detailed plan for how they're going to pay their college expenses for each year they attend classes, especially if they plan to decline the federal school loans in their financial aid packages.


Having a backup plan in place to cover unexpected financial emergencies can also help reduce the need for student loans, as well as the overall cost of a college education.


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Benefits Of Private Student Loans

Many people think private student loans can only be utilized for tuition fees. Well, that's a misconception since you can use these loans for a number of different purposes. The private student loans provide the borrowers with the feasible cash availing opportunity hence helping the students in meeting their various needs which even the scholarships leave aside. Following are a few advantages that you can enjoy with a private student loan.

Well, everyone knows the cost of books can burn a hole in your pocket. With every passing year the prices are soaring higher and higher. Now though you can find some discount on second-hand books but you can't always find the books you need there. So, in such a situation private student loans can help you out perfectly well for providing you with necessary cash to buy them from wherever you can find them.

Other than this, in case you are living in a rented public house, you must be aware of the high rents and may be one could manage the rent somehow but what about the daily expenses of meals and the utilities etc. Meeting these expenses can get really difficult for particularly students so here is when you can make use of the private student loans. You can use them to cover all your expenses or just borrow enough money that could help you in reducing the burden of expenses.

Furthermore, there is another very important yet neglected aspect that can make you suffer for money. Well, you are going abroad or to another city for study purpose where the climate is comparatively harsh than yours', don't you think you will be in dire need of proper clothes and other accessories. However, it is not just that, you may find yourself in need of some extra cash to see a physician in case you get ill. Now, while most students bother their parents to send them more money, you can always sort things out on your own by getting these loans.


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5 Ways to Pay Back Student Loans

Paying back student loans can be a never ending pain and challenge in your life. Back when you were a student and you first took out your student loans chances are good that you did not realize at the time the full impact of having this debt on your life. Whether you have borrowed a lot of money or only a little, the reality is that to pay back student loans you are going to have to sacrifice, and stretch. It will not be easy but it can be done and there are ways to do it in less time than you might think is possible.

Here are five ways to pay back this debt in less time and without having to live like a broke student forever.

1. Start your own business. While you might think that it is impossible, there are lots of ways to do this with a minimal investment of under $500. The easiest ways to do this include network marketing or direct sales or freelancing for clients offering them any skill that you have that is in high demand. You can do it part time while you are working and generate enough extra income to pay them and even more. I personally started my home business while I was in graduate school and while it was difficult at times to balance, work, school and my business, I created income and generated a high database of leads and customers while I was still in school. I also found that having a home business as a student was a nice way to get a break from studying. Furthermore, when I graduated it took me almost four years to get a full-time job and I was able to use the income from my home business to pay back student loans and other bills while I was job hunting.

2. Get an extra job for a few hours one night or day per week and then set aside that money to add to your minimum payment for your student loans. Doing this consistently for a year or two will make a big impact and in fact, you will be surprised at the impact that this will have. I'm also done this, and the reality is that even an extra $100 a month can decrease the amount of time it takes to pay back your loans because you will pay less interest.

3. Set a goal to pay back student loans in a certain time frame. Make your goal reasonable and doable. For example if you owe $40,000, setting a goal to have it paid off in 3 years would be reasonable but it would also require you to do some work and to sacrifice.

4. Make a list of all of the skills that you possess that people would pay you for. Develop ways for people to hire you to do those tasks and then find 2-3 people per week that you can work for in your spare time after you are through working your regular job. Examples include things such as bookkeeping, web design, how to use Facebook and other social media sites, writing articles for people, house cleaning, and babysitting.

5. Make your minimum payments on your student loans until your credit cards are paid off. If you do not already have credit card debt then you are even better off and you can start paying more on your loans. Stop using your credit cards except for an absolute emergency such as a medical disaster.

In summary you can pay back your student loans but you will have to work at it. The consequences of not paying them back are severe and can cause you to have major financial problems so you need to do what you can to get them paid as soon as possible.


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6 Keys to Minimizing Student Loan Debt

If you're a senior in high school who's planning for college but you haven't yet picked your school, you're in the sweet spot.

The decisions you make in the coming months will define your life in more ways than you can imagine. Your choice of college and major could allow you to enjoy life after graduation relatively unburdened by debt from student loans, or you could end up saddled with a financial burden that could interfere with you being able to buy a car, qualify for a credit card, rent or own a home, or in some cases, even get a job. In other words, now is a great time to pay attention!

Few decisions are more important right now than where you go to college and what you study. These two decisions will largely control how much your education will cost.

Cost, more than any other single factor, will determine how much student loan debt you'll be carrying when you leave school and how much financial stress you could be facing after graduation.

1) Know your realistic earning potential as a new college grad.

First and foremost, know the average starting salary of the career path you plan to embark upon. Don't rely on "average" salaries for a profession, which are often skewed by the higher salaries earned by workers with more seniority and experience. Dig deeper and find out how much you can reasonably be expected to make in your first year on the job.

As a general rule of thumb, if you're going to use student loans to pay for school, limit your borrowing to no more than the amount you can reasonably expect to earn in your first year of full-time employment, assuming that you're working in your chosen field.

And as long as you're researching careers, spend some time looking into the overall occupational outlook for your desired profession - what kinds of jobs are available? what's the unemployment rate for your chosen field? are recent grads getting hired to do this work or are most of the positions going to more experienced workers? - and how likely you are to be working right out of school.

2) Know what different college decisions will cost you.

About two-thirds of college students take on at least some school loan debt in pursuit of their college degree. For these students who take out college loans, the average debt burden is currently almost $24,000, according to FinAid.org.

But as with job salaries, don't make the mistake of being fooled by averages. Your own college loan debt levels can be much higher than average if you attend a private school or an out-of-state public university or if you choose to live on campus while in school.

By the same token, you may take on much less debt than average in student loans if you attend an in-state school, live at home, or study for two years at a community college before transferring to a four-year institution.

3) Educate yourself about student loans, and only use them as a last resort.

Other factors that can affect your need for school loans include whether or not you (or your parents) have been able to set aside money for your college expenses and for how long; how much financial aid you've been able to amass in college scholarships and grants; and whether you're a work-and-save or a work-and-spend kind of person.

Having a good understanding of college loans and of how money, personal credit, and interest rates work never hurts either.

4) Plan to graduate in four years or less.

Only slightly more than one-third of college students now finish their undergraduate degree within four years. This trend has significant financial implications because the more time you spend on campus, the more expensive your degree becomes.

If your choice of major has relatively modest earning potential, endeavor to complete your degree as fast as you can, particularly if you're going to be relying even partially on college loans.

An extra 12 to 18 months on campus not only means another year or more of tuition and fees (and taking on even more school loan debt to cover those additional costs), but your existing student loans, unless they're federally subsidized, will accrue interest during that time as well, before you're asked to start making payments on them.

With bigger student loan balances and months more in accumulated interest charges, instead of having your school loans paid off within the standard repayment term of 10 years, you may find yourself still making college loan payments well into your late 30s or 40s.

5) Have a plan, and stay on track.

One important key to graduating quickly, saving money on college course fees, and cutting back on your need for school loans is to have a good idea of your education and career goals and to avoid making drastic course changes after you've already invested some time in your declared major.

If you find that your initial choice of major won't make you happy or you don't have the skills or aptitude to carry out your initial plan, try to find an alternate major or field of study that can take advantage of the coursework you've already done so that you don't have to start again from scratch in earning credits toward your degree.

6) Have a backup plan.

There's no better time than right now to be starkly realistic about how much a college education costs. If you plan to rely on family assistance or a part-time job to get you through college, sketch out a Plan B in case something happens to change your job or your family's financial situation.

If you'll be living on campus, could you move back home to cut room-and-board costs? If you won't be working, could you start? Could you transfer to your state public university or to a local community college?

Also make sure to familiarize yourself with scholarship and grant resources, federal education loans and private student loans (and the difference between the two), and other ready sources of money for college that you can turn to should you need to.


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Options for Waiving Student Loans in the Public Services Sector

Did you know that a portion of an educational loan can be waived for public service employees? Debt management services can do a detailed analysis for you.

Many who now work in public services might have borrowed through a Professional PLUS Loan or Parent PLUS Loan. But did you know, as public service workers, you are entitled to have a certain portion of your loans forgiven? Yes, it's true, but there are certain criteria you must meet to be eligible. Experts of debt management services give clear insight into those criteria:

You must be a full-time public service job holderThe outstanding educational loan should ideally be under the William D. Ford Direct Loan programThere should be no defaults on the eligible loansYou should have made at least 120 monthly payments since October 1, 2007You should have made your payments under a licensed repayment planAt the time of loan cancellation, you must be employed at a qualifying public service venue

Debt management services experts predict the loan cancellation will not happen until October 17, 2017, even if you started making payments in October 2007, because of the 120 payment requirement. But this is still a better option than being stuck with accumulated debt problems.

Companies offering debt management services lise the following jobs that qualify for the student loan forgiveness plan:

Government sectorLaw enforcementPublic safetyChild careFamily service agencyDisability serviceElderly serviceTax-exempt organizationsEmergency serviceMilitary sector

Getting a waiver on a student loan is not as easy as it sounds. Your repayment plans are also taken into consideration. Debt management experts have categorized the following plans:

Income based repayment
Your repayment plan is based on your income. However, Parent Direct PLUS borrowers are not eligible for this plan.

Standard repayment
You can opt for repayment under the standard 10 year scheme.

Direct loan repayment
You can also opt for direct loan repayment if your monthly payment is similar to the standard 10 year repayment plan.

This loan forgiveness program is very much available for those with public sector jobs. You just need to be aware and plan ahead to take advantage of the program and reduce your debt problems. Once you are close to reaching the required 120 monthly debt payments, it is recommended that you contact the Direct Loan Servicing Center.


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Student College Loans

That have caused them to "tighten their belts" - even before they have to start paying for college.

The cost of college increased 28% between the college year starting in August of 2008 and August of 2010. Families who make between $100,000 and $150,000 a year were hit the hardest. They saw a 30% increase in college costs.

So how are students paying for college?

Surveys show that Americans are making do and still sending their kids to college. 43% of college students are currently living at home to save money. 63% of college students made decisions about what colleges to apply to because of costs. This is up from 56% in previous years.

Student college loans also rose. 46% of families with college students now have college loans, which is up from 42% in past years. Borrowed money was used to pay for almost half of college costs. Students and parents borrowed from traditional education loan sources - both private and federal - as well as from home equity loans, credit cards and loans from retirement accounts.

Parents and students are undoubtedly worried about future tuition increases, loan rate increases and the possibility of job losses. Still, most families strongly feel that their children need college degrees to make it in this world where good jobs are increasingly difficult to find.

Students, and parents of students who are either currently attending college, or will soon be attending college, should look at a site. Any student loan provider company is an independent company that partners with students and their families as well as with lenders and college and university financial aid professionals to match students with the best college money deals, which include scholarships, grants, fellowships and both private and federal lending. When students input their information into the site, they will receive a list of up to twenty potential lenders as well as a list of 1000 scholarships and all sorts of information to help clarify the sometimes confusing process of finding money for college.

Students and families will learn about "free money," or money which does not have to be paid back, like scholarships. They will also learn about the pros and cons of federal and private lending.

In general, students should take free money first, federal money second and then look at private lenders after they've maxed out the first two. Check out a site like the one above and you will see why!


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Student Loan Default Rates on the Rise

Updated statistics released by the U.S. Department of Education show that student loan defaults are rising. According to the latest figures, the default rate for government loans that entered repayment in 2008 is 13.8 percent, up 2 percent from the default rate for federal student loans that entered repayment in 2007.

The current official national student loan default percentage, which stands at 7.0 percent, measures the percentage of borrowers who default on their federal education loans within the first two years of repayment. But when the calculation is expanded to take into account defaults within the first three years of repayment, the national student loan default percentage jumps to13.8 percent.

The New College Grad: Unemployed, in Debt, and Defaulting

Under new rules implemented by the Higher Education Opportunity Act of 2008, the three-year calculation will soon be used as the standard measure of student loan default percentages. Beginning in 2014, colleges and universities whose default percentages rise above 30 percent will lose access to federal financial aid - government-funded grants and education loans - for incoming and existing students.

Current federal regulations cut off a school's eligibility for federal student aid when the school's default percentage exceeds 25 percent, but that guideline uses the more forgiving two-year default rate. Officials at the Education Department attribute the rise in student loan defaults to the soft job market and the ballooning number of recent graduates who are finding themselves unemployed and with a pressing need for debt relief.

Education Department officials also point to the growing amount of college loan debt being accumulated by students, particularly at pricier for-profit colleges and private nonprofit four-year universities. Among undergraduates who leave college with debt from school loans, the average student loan debt load is $23,186, according to FinAid.org.

Using the three-year default rate calculation, the default rate for students of private nonprofit colleges and universities is 7.6 percent, compared to a 4-percent two-year default rate. Among public university students, the three-year default rate is 10.8 percent, versus a two-year default rate of 6 percent.

The biggest jump from two-year to three-year student loan defaults is seen among students from private for-profit colleges. Using the three-year measure, the default rate among these borrowers is 25 percent, more than double the two-year default rate of 11.6 percent.

New Rules Threaten Schools' Access to Financial Aid

According to an analysis conducted by The Wall Street Journal, nearly 9 percent of higher education institutions would lose their ability to offer federal student aid if the new default rules on college loans were in full effect today. Under the current rules, only 1.6 percent of schools lost their eligibility for federal grants and college loans due to excessive student defaults.

A 2003 report from the Inspector General for the Department of Education charged that some for-profit colleges had become so concerned about the rise in student loan defaults among their former students that the schools were masking their true institutional default rates. Two high-profile cases in 2008 and 2009 charged two for-profit school with paying off delinquent student loans in order to avoid having to report the defaults, a practice that violates federal financial aid regulations.

In response to these and other barrages of accusations being fired at for-profit colleges, the Department of Education is considering other regulations that would prevent the for-profits from misrepresenting the financial health of their graduates by manipulating student loan default percentages.

In one proposed measure, termed the "gainful employment rule," the Department of Education will not only look at student loan repayment rates but also graduates' debt load from school loans as a percentage of the income these students earn after they leave school. By tying a for-profit school's eligibility for federal student aid to gainful employment following college, the Education Department is hoping to stem the spiraling levels of student loan debt at for-profit colleges, which historically have produced the highest default rates.

Student loan default rates have garnered new attention from the Education Department not only because the default rate is rising but also because the department is under Congressional pressure to produce a more cost-efficient student lending process with fewer losses from defaulted loans. The Department of Education is expected to issue the finalized gainful employment rule later this spring.


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