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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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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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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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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Student Loans in the US and the Gods of Educational Debt

Student loan defaults are rising in the United States (and so are the debt rates) and we should wonder: are we be really surprised by all this?

Everybody knows what a student (or college) loan is: it is very simple, it is just "another loan" that is in fact designed to help college students pay for their tuition, living expenses, books, and the likes. The difference from other types of loans is that (i) the interest rate is quite lower with respect to a "standard loan" (the one you could get to buy a car for instance) and (ii) the repayment schedule is deferred for the entire duration of the education. Accepting a student loan, of any kind, should be done with extreme care, and the student should be aware of the basic facts and total US figures: - The current outstanding student loan debt in the United States stands at more that $830 billion; - Almost 14.5 millions are the undergraduates who enroll for college; - Each college student in higher education pays (but this is just an average figure) almost $11,000 to attend university education.

The figures above are impressive and we may wonder how the US can keep up this huge higher education loan deficit that appears to be getting wider and wider... Anyway, for sure a student loan has some advantages as said, in particular, the 2 major advantages of a student loan over conventional loans are: 1) Lower interest rates; 2) Easier repayment terms.

You can have a private student loan or a federal student loan. In the case of a federal student loan, Federal Direct Student Loan Program, also called Direct Loan Program or FLDP provides low interest loans for students (and parents) to help pay for the cost of college education after high school. The lender, in this case, is the U.S. Department of Education and not a bank or a financial institution, such as SallieMae for instance (and in this case we would be talking of private loan). For sake of clarity, also consider that until recently, there was the Federal Family Education Loan or FFEL Program, the second largest of the US higher education loan programs initiated by the Higher Education Act of 1965 and funded through a public/private partnership. Following the passage of the Health Care and Education Reconciliation Act of 2010 on March 26, 2010 FFEL Program was eliminated, and no subsequent loans were permitted to be made under the program after June 30, 2010. In other words, following the passage of the Health Education Reconciliation Act of 2010, the Federal Direct Loan Program is the sole government-backed loan program in the United States.

In this article titled " Dark lords of student loan debt," Vox Day (a blogger) shows that the advantages of a college loan (and the value of college education) may come as a hard bargain:

... the value of a college education has not only declined significantly [...] it has also been slashed by the construction of a methodical system of financial rapine...

We invite you to read the full article and figure out by yourself if that is the case and/or you are affected by the Dark Lords, or Gods depending on the point of view, of student loan debt and if indeed these programs are a scheme... What is important to remark is that indeed college is always been considered a valuable investment, but right because we are talking of "investment", a college student (and their parents) should stop a moment and think about the ROI of college.

Perhaps the value of college as declined over the years, perhaps such value is no longer a "big" value as it had been for the previous generation, perhaps the ROI of college education could be substantially increase if, instead of considering private education, we consider a public education?

Certainly, there is no single answer and no answer that is valid for everyone regardless of his/her particular situation, life objectives and, most importantly, financial situation and whether your student loan is private, federal or it is a combination of private and federal student loan.

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Time to Pay Your Student Loans - Are You Suing Your Parents?

When it comes to paying for your college education, student loans are the answer for many people. With little to no interest rates, deferment options and full coverage many students take on loans as quickly as they do study habits, but what happens when you graduate and its time to pay up?

With the economy at a standstill and the unemployment rate at 9.3% (down 3% from 1990) many students are wondering "what do I do with this degree?" Many are unable to find that perfect job they spent years building up the education for but the loans are on their own timetable. Lenders might be sympathetic to your struggles, but they still are looking for repayment.

For some graduates, its not only student loans that have been accumulating - it is very common for other credit cards to have been used on a regular basis to pay for everything from meals, gas, books and of course the occasional after class happy hour.

Those recent graduates who are now facing massive student loans and looking to get out of debt they think that filing for bankruptcy is their option. Yet after the US Bankruptcy Code this really limits student loans at being discharged through filing bankruptcy.

I just read about a case where Dana Soderberg was suing her father to pay her tuition costs after having him sign a contract that he would handle her tuition until the age of 25. Well that's one sure way to get out of your debt, not exactly one that I support but I suppose not everyone thinks along the terms of actually having their parents sign contracts when it comes to helping them with their education. I remember starting the local California State University with a graduation check from my grandmother and my mom telling me "you should apply that to your tuition." I never thought otherwise.

So if you haven't contractually binded your parents and don't want to just walk away from those loans, consider your options. If the career you are working towards isn't taking you on, then maybe you need to take on a part-time job. Find ways to budget your money, maybe sell some items on eBay or even have a garage sale.

Now that I am in graduate school I have taken on student loans for the first time and I can sympathize with other students in this economy. I take my debts seriously but I also look for ways to pay them off as fast as I can and keep my credit rating good. It's all about being responsible with your money, creating a budget and if possible stop using your credit cards (save them for emergencies - or at least until you can pay them in full every month).

If you have federal loans, the federal government offers grants and your loan might qualify for forgiveness. If you are like me and you have private loans, military loans or any other type these will not qualify. Student loans are known as unsecured debt and the only guarantee that it will be payed off, is through the act of actually making payments! (In contrast to secured debt - like a mortgage, where you can lose your house if you do not pay).

I don't know if it comforts me or scares me, but to know that I am not alone in this dismal economy keeps me going somehow. If you have found yourself in $10,000 or more in unsecured debt there are options for you. Don't be fooled into thinking the "easy" way out is bankruptcy. Try a debt settlement program; let a professional work for you! With all this downtime between job searching, it can be a time to work on you. Make some financial goals - one thing I learned in school was the three week, three month and year plan. Where do you see yourself and what do you want to accomplish in those times? Being financially free and out of debt is one sure goal to adhere to.

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The Best Solution of Your Exhausted Student Loans

There are some students who need more than a student loan. They may think that the parent's income can't fulfill their educational needs. Those who have some student loans can try to consolidate their loans into consolidation loan. Getting this way will help them to get many advantages. One main reason to apply for this help is that it comes with the longer repayment period. Somehow, there are some options of the repayment process you can choose.

The first choice for the repayment option is the standard payment method. Doing this way will help you to get the easiness of life. The lender will tell you at the first time about the sum of money you have to spend. You will have to pay the loan amount until you complete it all for ten to 30 years of repayment.

The next thing you can choose is graduated pay back method. A direct loans consolidation with this kind of payment allows you to have lower repayment for about the first two years and after that the interest rates will get higher. The length of this repayment process will take the same as the first; it is about 10 to 30 years.

If you have a loan debt up to $30,000, you can try to get the extended payment method. This way will help you to get a lower repayment period. Try to compare with the first two; you will see that this payment will come in a longer time.

No matter which one you choose, before the repayment begins, you should have made a decision about the fixed monthly payment. That way will help you to be able in re-manage your financial situation. Try to fix your monthly income at least at $50.

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Tips for Preparing and Comparing Student Loan Consolidation Programs

Student loan debt can create an uncomfortable financial situation when you have to start repaying on the loans. The payments can put anyone in a bind. To make matters worse, it may take several years beyond graduation to start making decent money. This is where consolidation student loans can be beneficial. You can take a new loan to pay off the existing ones, and create a smaller monthly payment. In many cases this can make the difference between living comfortably and staying awake at night worrying about debt.

Preparing for Consolidation
You'll be in a much better position if you take a little bit of time to prepare for consolidation first. If you are still in school you can start looking at what you'll need later. If you can recognize a potential problem with paying back the loans before you have to start repaying you'll be much better off. Even if you are already in a financial bind, you can do a little legwork up front. Make sure your current loans, not just the student loan, are up to date. Missing payments can knock you out of qualifying, even if it was just one time. Late payments or over limit credit accounts on your credit report can reflect poorly and decrease your score. The credit score is heavily relied on, even with consolidation of student loans. To avoid getting a higher interest rate, try to keep up on all of your accounts for at least a year before consolidation. Checking your credit report can also help you with this. It's not uncommon for items to be reported incorrectly. You can dispute any items that have been reported incorrectly.

Comparisons
Shopping for student loan consolidation is just as important as shopping for loans for anything else. Many lenders offer different terms and perks. You may also save money on interest rates by shopping around. When you start looking for consolidation programs there are several things you want to find out about. Most people assume the interest rates are the most important thing to look for. While the rate should play a large role in your decision, you want to find out about other terms and benefits as well. Some programs will allow you to defer a certain number of payments during the term. This means if you have a bad month where unexpected expenses have left you short, you can push that month's payment back to the end of the loan. It won't report on your credit as a missed payment, and you can pay your other bills without worry. Some companies also offer flexible terms, ranging from 10-30 years. A 10 year term will have a higher monthly payment, but lower interest over the life of the loan. A 30 year term will allow you to make payments within your monthly budget but will create more in interest charges. Weigh this when you start comparing.

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Unsecured Student Loans Are One Way to a Degree

Going to a college or a university is not a walk in the park, mentally or financially. Students are immediately confronted with some facts of life, like it costs money to live - eating and sleeping are not cheap habits.

Cost of Living

Add a cell phone, a computer hookup, and other utilities (gas, water, lights) and a student is looking at a pretty hefty sum. What about transportation? Trains and cars are not free.

Cost of Learning

But that is only the second most expensive thing a student is confronted with. A little thing like tuition, fees, books, class-related materials, and a laptop can roll into a lot of dough, and that dough can keep rising.

Show the Student the Money

Scholarships are nice. Grants are good. Even should a student land a scholarship or qualify for a grant, they still are not completely covered. And face it, some students do not qualify for either. So, where does the money come from for these hapless seekers of knowledge?

Watch Out for Harmful Credit Cards

Solicitors representing credit card companies are to be found in abundance during registration days. Many students get them and start racking up expensive charges with loan-shark interest rates. Though a credit card can come in handy when things are tight, too many use them for everything. These poor benighted folks walk away from their graduations burdened with tremendous debt and horrible interest rates.

Unsecured Student Loan Option

Though unsecured student loans are not available through the usual college or university venues, the financial counseling offices should be able to point a student to a reputable lender that has helped other students.

Searching for a Lender

Another way to find them is by searching the Web. Punching student loan into a browser will reward you with hundreds of hits. With such a large market, it would be prudent to carefully weed many out. This will put the most dedicated shopper to the test, but canny shopping can save a student thousands in the long run.

No Credit History

As a student, you are probably approaching the lending industry for the first time. As so, you probably have little or no credit history to your name. Student loan lenders are willing to take a chance by lending to you.

Student Loan Competition

Student loans usually have a sub-prime lending rate (low interest rates are always good) and offer terms that are competitive. Some may delay payments until after the degree is obtained.

You Are the Boss

Always remember that you are the boss, that lenders are not doing you a favor by giving you a loan. You are doing them a favor by giving them your business. Be a smart, hard-to-please shopper.

No Stephen Hawkings

You do not have to be brilliant to earn a college degree. You do not have to be brilliant to shop wisely for a student loan. You just have to stick with it on both horizons. And getting a college education is certainly not something for only the rich. You need to find your funds and forget about it. You need to focus on your studies.

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What Are The Factors To Consider Before Going For Student Loan Consolidation Rates?

To consider on student loan consolidation rates is a top concern for someone who finds themselves under To consider on student loan consolidation rates is a top concern for someone who finds themselves under the load of numerous debts.

One of the major concerns is to check out for the interest rates before you go on. The other factors I want to point out are the monthly payments, the time period and any terms or conditions. These all factors should be considered into the decision to consolidate your current student loan into a single.

Some more factors figure into the consolidation rates are: Is the loan a private or is under federal government? Rates of federal loans are superior to other. But we must know the type of loan you are considering or applying for. Its types depend on its current interest rates.

- Stafford Loan (in school): 1.88%
- Stafford Loan (repayment): 2.48%
- Federal Plus Loan: 3.28%

The calculation behind federal student loan is that it is based on the weighted average of loan interest rates.

Before going to consolidate it's time to check for the low rates. The interest rates of federal loans are the weighted average of all your loans rounded up to the nearest 1/8%.

In order to low down your interest rates, credit history is a big factor to go for. Your credit score determines the consolidation rates. If your credit score is not so good, look for Stafford that is not base on your credit history. Stafford loans are taken on the conditions of need rather than credit score and ability to pay it back.

Your originating fee also accompany with this issue. Always look for the charge on the total fixed loan. But competition between the companies may offer you low rate. With the federal loans, a portion of fees goes back to the government to reduce the overall cost.

Before to consolidate, it's time to check all the attached grace period, charge payment on late payment and what offer you get. To relief from your headache for monthly payments on time these issues can be very important to roll on.

If you want to reduce all your monthly payments for all your school, college loans then learning more about student loan consolidation rates is crucial through this article.

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What Are Your Options for Paying Back Student Loans?

The student loan is a condition of credit. You can sign the Master of the bond that forges a legal agreement between you and the lender. But there are several ways to pay for what you have, even if he is late.

Getting a student loan is certainly a great responsibility. However, many students is their only option really afford college. And this sort of forced their responsibilities, many students trapped in a mixture of knowing that they have a real choice when it comes to how they can pay their student loans.

We hope that by the time you read this, you can know all the repayment options and a much better idea, one that fits better. Use it as a general guide for the repayment options. Discover what opportunities are available to you and choose one that suits you.

Standard Repayment Plan

This is the repayment plan offered by your lender. You make payments for up to ten years. Your monthly payments are higher than in other plans, but your total payments are lower because you pay less interest.

Graduated repayment plan

Under a graduated plan, payments start to increase low and during the repayment period - usually every two years. It is a good option if your income is low when you graduate, but will increase quickly.

Extended Repayment Plan

A plan of extension allows you to stretch your repayment over a period of up to 25 years depending on the amount of your loan. To be eligible for this plan, you must have an outstanding loan of over $ 30,000. You can plan an extension of the graduated payments, which will lower your payments even further but will increase even more global investment.

Income-Based Repayment Plan

If your income is low or unstable, an "income-based" or "income-sensitive" repayment plan may be good for you. As your income increases or decreases, so do your monthly payments. The payment amount is redesigned each year, depending on your annual income, household size and the amount of the loan.

Which plan is available depends on the type of loan you have.

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Using A Student Loan Calculator to Find the Best Consolidation Programs

If you want to compare student loan consolidation offers and rates, a student loan calculator will allow you do this with an actual number. A lot of companies will toss out terms and rates, but in the end if you don't know what kind of payment you are looking at, it's not going to do you much good. If you want to use a calculator you will need to have several pieces of information.

Understand Your Current Loan
A consolidation loan is going to pay off the current loans you have and create a new loan. For each of the loans you have you want to write down what the interest rate is, what the terms are (how many years), the type of loan, and the amount you've already paid towards the loan. Many websites offer calculators that can help you see your savings before you sign up. Before you can use these options you need to have the listed information above to get the most accurate results. You should also take a look at your credit so you know what kind of interest rates to expect. You can find online calculators that will help you determine average rates for your credit score. You may have to pay a few dollars to get your actual score, but it's helpful when you are shopping for the best consolidation rates. Just be sure you aren't signing up for any kind of monthly recurring charge or service when you get the score. If you go directly through the credit bureaus you shouldn't have to worry about this.

Using the Calculator
You can find several student loan calculator options if you do a simple search. Try to find a consolidation calculator. This specific type of calculator will take in to account the average available rates for consolidation, and will tell you not only how much you will save each month, but how much interest you end up paying over the life of the loan. For instance, a $50,000 Stafford loan at the standard rate of 6.8% over 10 years would cost $575.40 per month. You end up paying almost $20,000 over the life of the loan just in interest. A consolidation that changes the terms to 25 years will lower your monthly payment to around $370 per month, but will end up costing you more than $60,000 in interest over the 25 year term. And that's assuming you have decent credit and can get the standard interest rate. Keep the calculator open while you shop around. This will give you a much better idea of what is a good deal and what isn't. The calculator will allow you to change the interest rates and terms, so as you speak with different consolidation companies you can plug the numbers in to see what savings you can expect. This is one of the easiest ways to compare student loan consolidation offers.

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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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Consolidate Your Student Loan

Lucky are those people who studied college with financial support from their parents or relatives. There are several teenagers who did not enter college because their parents are no longer able to sustain their tuition fees. For the reason that, their folks has no job, suffered from serious illnesses, or even sudden death. Yet, it's time to set aside your sentiments; it is the perfect time to seek some aid from a government or private firm in the form of student loan.

Student loan is design especially for student, with unique condition in terms of payment. These funds are intended for education purposes with cheapest interest rates. As a student you are given 2 choices with regard to your loan. First, is the federal student loan; this is administered by the Department of Education Federal Aid Programs. A government sector that rendered educational supports such as scholarships and grants. The good thing about this loan is that the federal provide flexible repayment and deferment options. It also offer borrower benefits, such as discounts and low fixed interest rates. As well as federally-subsidized interest depending on the student's need.

Second is the private student loan, this granted by a qualified private institutions like banks. It can assist when federal student loans and other aid are not enough to sustain the entire education. However, not all private institutions have deferment options. Likewise, interest rates and fees that are determined by the lender and often depend on your credit ratings. The approved funds vary on your parent's financial level and other financial factors. That's their ways on weighing how much they can lend to you.

Failure of your obligation may affect your credit ratings and have long-term effects that might ruin your future. Debt consolidation services may come in to help you solve your problem. Like Florida Consolidation extend their services like bad credit consolidation loan, student loan consolidation, and other functions like finance counseling, and other programs.

Debt Consolidation Services is an organization that helps you lower your monthly student loan payments and added loads of extra cash in your pockets. In consolidating students' loan, the two types also differ in terms of interest and mode of payments. You are eligible to consolidate federal student loans when you are not any more link up in school while the private loan no matter what the outcome, whether you finish your studies or not you are obliged to repay your loan in accordance to the agreed terms.

If you are engaged to both federal and private loan, you may consolidate them both but in separate manner. Consolidate your federal student loan first, then followed by the private in order to avail the benefits of each loan considerations.

Therefore, even fantastic or tremendous loan package on front of you, don't forget to be a wise borrower. It is important as debtor that you understand terms before agreeing it. As well the background and reputation of the company you are planning to engage with. The amount of money you lend today may affect your economic status in the future.

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How to Manage Student Loan Debt?

Dealing with unfavorable financial conditions is not a straightforward task, and in case you happen to have serious financial problems, a bankruptcy trial lawyer could suitably assist you. This instance could occur when you are powerless to deal with your debt. This situation could also arise when you are under the pressure of a student loan debt. Investigations reveal that nearly 50% of students are powerless to repay their debts for a minimum time span of 10 years. Statistics reveal that this number is all set to escalate, with the escalating redundancy rate. In case you are by now under the influence of a loan debt, it is the precise time for you to be aware of how you can deal with it in a proper manner.

Managing your student debt is not an impossible task; however it is up to you to be conscientious in this regard. The initial step entails procuring sufficient knowledge pertaining to the loan. Establish the type of your student debt. Assess the exact amount which the loan owes to you. You could ascertain the payments which are to be made on a monthly basis. Analyze what would be the rate which you would be required to pay, on the whole and additionally on a monthly basis. After this process, you can find out if you are capable of paying the amount within the stipulated time frame or not.

If you have certain issues with the payoff, you could seek the extensive payment alternative. This would render it feasible for you to repay lesser amounts of currency which could be spread out over a longer time frame. This would ultimately lead to elevated interest rates, though this would be beneficial for you in the long run as the interest could turn out to be tax-deductible encircled by scrupulous restrictions.

You could also utilize an income-based settlement arrangement. This would assist you in lessening payment by another 15 percent of your flexible revenue and this would occur on a monthly basis. You would be able to keep yourself updated with all the current payments effortlessly. This would also lead to augmented savings which you can utilize for supplementary investments.

Alternately, you could also request for leniency or rescheduling on your student loan debt payments. This is appropriate if you are powerless to repay your debt just now. This opportunity would necessitate a distinct time span through which you could ensure that your debt is balanced. This would be quite useful in case you are undergoing a certain period of joblessness.

Initially, your student loan debt could appear to be a helping hand, which could suitably be transformed into a frightening situation if you are incapable of managing your student loan aptly from the onset. It is advisable to bear the fact in mind that when you are a student, employment prospects would not for eternity be convivial. Thus, it is essential to focus on proper management of debt, right from the onset and you would not have to face innumerable issues in the near future.

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Methods to Pay Back Student Loan

So you've completed college and are left with a huge amount of debt in the name of student loan. How do you pay back this loan? Student loans are as good as a car loans or home loans in that it needs to be paid back to the lender. Though the interest rate is very low still after a period of four years when the time comes to repay it, it looks a huge sum.

First and foremost calculate and take stock of all your existing student loans. See if it is the same lender from whom you've borrowed. Often the lender changes as they transfer student loans from one lender to another. Check out the details before you start paying back. If you've landed with a good job then it is not a task to repay the loan. Develop a good financial plan where in you will pay off your loan as well as make savings for the rainy day. If you haven't then you need to think of various options.

Income based payment- You can ask your lender to deduct a certain amount monthly based on your income. For this you need to show your tax returns as well as income slips for the lender to consider this option.

Student loan consolidation- Here all your existing loans are clubbed together and made into one single loan with a single lender. The advantage of student loan consolidation is, there is only one outgoing amount every month and the repayment time gets extended to a maximum of thirty years. Due to which the monthly outgoing gets reduced. But the disadvantage is you are saddled with debt for almost half your life and your savings are almost nil. Moreover if you've a debt of $30,000 or more, you will end up paying a lot more interest. In case you lose your job (God Forbid) then your lender has to be notified and that causes more confusion. So it is wise to research, analyze and decide what suit you the best.

Voluntary service- After graduation you can join Americorps and other voluntary organizations then your student loan get waived. Remember scholarships and grants are not included in this. They are free money that needn't be repaid.

Teaching- Teach for America is a program where you can go to low income communities and teach the under privileged. Student loan gets waived of at least $5000 per annum.

Military Service- If you join the military service then a loan amount of $20,000 is waived. To get even more pay off you can get stationed at high risk stations.

Social work and health service- These are two best areas where you can get pay off of your loans up to $25,000. Physical and occupational therapy are also areas that can give relief of your loans.

Social justice- As law graduates if you serve in public interest and non profit organizations then you can ask for loan forgiveness.

The Federal government has come up with several loan repayment options. Check out what suits you the best and go for it.

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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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