Sunday, June 20, 2010

Best Student Loan Consolidation Interest Rate Online

Student loan consolidation interest rates are subject to various changes. It is possible for a loan to incur two different interest rates in the loan term, in that one rate is calculated during the students time in school and the other kicks in once the student graduates.

Consolidation loans have longer terms than other loans.

Students can choose terms of 10-30 years. Even if the monthly payments are lower, the sum amount paid over the loan term is higher comp aired to other loans.

Fixed interest rate is calculated as the average of the interest of the loans being consolidated, assigning relative amounts borrowed, rounded up. Some loan policy features such as the grace period for re payment are lost and do not reflect on the consolidation loan.

These make them not suitable for all borrowers.Student loan consolidation interest rates is tied to one or more financial indexes.

For instance students with good credit scores or from families with good credit history get loans at cheaper interest rates and smaller origination paid out in terms of interest is now tax deductible.

This is a fact tat most lenders omit to tell potential clients so as to avoid comparison with other lenders in the market.

In some cases lenders give rates which are very low but fail to tell the borrowers that the rates only apply to those people with good credit scores thus they find themselves paying up to six percent more, than the advertised amount nine percent higher loan fees and two thirds lower loan limits.

Student loan consolidation interest rates also varies depending on the type of loan applied for.

They are two major types namely school channel loans and direct to consumer private loans. the school channel loans are certified by the school thus offer lower interest rates however they take a longer period to process and are directly disbursed to the school on the other hand direct to consumer private loans carry higher interest rates but are accessed very quickly.

The argument behind this is that the convenience is offset by the risk of student over borrowing or misuse of funds.

Student loan consolidation interest is also determined by the buying factors, such as the perceived risk of lending to the individual as well as the financial indexes they are attached to such as stocks and money markets current trading trends.

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Tuesday, June 15, 2010

How to Get the Best Student Loan Consolidation Rates

It is very common in today times to find that you are graduating from college with a number of student loan debts. When you start looking at all of your loans, the repayment terms, and the interest rates; it can quickly become overwhelming. However by looking at student loan consolidation rates you might be able to save money and reduce the number of payments that you make on a regular basis. When you consolidate your loans you will find that you have better interest rates, better terms and one simple payment to make each month. Plus most student loan consolidation companies actually help you with being able to find the best options for you including repayment terms that fit into your budget.

By being able to find great student loan consolidation rates you will be able to reduce any feelings of anxiety that you might have over the process. This lower interest rate will help you to be able to have more affordable payments. Plus you will save money in checking as you only have to write one check each month rather than sending multiple checks out for multiple payments.

There are many helpful pointers that you should follow when trying to get the best student loan consolidation rates. One of these is that you should make sure that you are not choosing the first company that you talk to without looking at the options given by other companies. This is one area where comparison shopping could save you a ton of money over the terms of your loan. You will want to make sure that you choose a company that has payments that fit into your budget and are at a reasonable monthly rate. Student loan consolidation companies are supposed to help you by offering lower payments, lower interest rates and a bunch of other benefits. Plus these companies do not typically ask for any additional fees so you might want to question things if you are being asked to pay any additional fees.

Also when you are looking at these loans, the lenders might push to get you to sign the loan right away. You will want to hold out for as long as you possibly can as this could increase the money that you are saving and might even help you to get lower interest rates. In many cases the lender will insist that you sign papers immediately. You will want to keep your options open as you check with many different lenders and find out what is available for you on the market. Plus you will need time to read all of the terms and conditions and to think things over prior to signing the loan. If you were promised things that are not in writing you will need to make sure that they are in writing in the loan as there is nothing legally binding about unwritten promises. Make sure that you only sign a loan if all of the information is correct.

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Friday, April 30, 2010

Student Loan Collections and Your Rights!

The FDCPA and your rights as a Federal Student loan Borrower

The government is known to hire collection agencies to collect defaulted loans. It is not simple attending to a defaulted federal student loan since different factors will alter the outcome. Since government student loans are different from other types of debt it is often misunderstood, and a collector may misrepresent a solution by twist their language around. Every borrower should be aware of their rights, and the factors that play a role in their own outcome. Doing the research and understanding the whole picture will make it easier for some one in this situation.

Issues with Student loan collection agencies may include:

-Misinterpretation and a lack of clarity when discussing the nature of these remedies.
-The complex details of these programs cause confusion about the collection agencies role when collecting on a debt.
-When establishing a payment program the agency has the responsibility for determining the size of the payment amount. In addition, the agencies help recommend borrowers to wage garnishments and tax refund intercepts.
-Government oversight maybe common, considering the high volume of student loan inventory these collection agencies must service.
-Some of Department of Ed's customer service phone numbers are contracted agencies them selves.


A collection agency should never harass a borrower. A Federal fair debt collection practices law and similar state laws exist to protect the consumer's privacy and rights. In some situations your state law maybe more powerful than the federal. A borrower should be aware of their rights when dealing with collection agencies. A rarely discussed right in the federal debt law is your right to request that a collection agency cease contact at certain locations (such as work places). Once the "Cease communication" letter is sent the agency will honor their request.
Additional rights in the federal fair debt law include:

1. Protection of Privacy

-Agencies are prohibited from disclosing the debt when communicating with 3rd parties. Third parties include non-immediate family members, coworkers, neighbors, etc.
-In most cases a collector should only call between 8:00 a.m. and before 9:00 p.m. No communication is allowed if the collector knows you are represented by an attorney. The agency must communicate with the attorney.
-Once a request is made, no communication is allowed at your place of employment.

2. Abusive language & Harassment is not acceptable.

It is flat out illegal for debt collectors to abuse or harass a borrower. Some examples include collectors that:

-Use obscene or insulting language,
-Refuse to disclose their identity,
-Threaten violence,
-Call over and over again on the same day with out your permission.
-Making false threats to investigate you.

3. Misleading or False Representation is flat out wrong

A collector should only mention consequences that can legally be made a reality. It is always suggested that a borrower listens carefully for the collector's choice of words. It is also suggested that a borrower takes careful notes and talks to the same reps.

For example, collectors may not make false representations by threatening to take any action that cannot legally be taken (e.g. Take your house, Levi your savings account, taking your kid away, sending you to jail, seize your properties).

Although a collector may choose to misrepresent them selves or say misleading things, if the borrower had a full understanding of their options this would not be a problem. It is ultimately up to the borrower to expand their knowledge so they will be able to make a educated decision.

I'm Christopher Kay The "Rogue Student Loan collector." I'll tell you everything you need to know about Defaulted Federal Student Loans Stopping student loan garnishment, Stop Tax offset, Fixing your Credit, Lowest payment plans, Different payment plan types and everything you need to know about defaulted Federal Student Loans.

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