Thursday, April 14, 2011

Student Loan Consolidation Services - Using Them To Pay Off Debt

By Stephen L Carson

When students graduate from college, they start thinking about how to pay back their loans that financed their cost of education. A number of financial lenders are offering student loan consolidation services aimed to ease the financial burden of borrowers.

As the economy attempts to recover from the crisis, authorities have set lending rates at record lows to make credit affordable and accessible to more people. As a result, student loan rates right now are also low.

This is particularly beneficial for those who have received more than one loan while they were studying in college. By consolidating their student loans, borrowers are able to reduce their monthly payments thus allowing them to allot some of their cash for other expenses.

While these loans are designed to aid students in their educational expenditures such as books, tuition, and cost of living, they actually come in two forms: federal and private.

The federal loans are those sponsored by the federal government while the others are provided by private institutions. In general, however, private student loans cannot be consolidated with federally sponsored loans.

Nevertheless, there are lenders that target borrowers who would want to refinance their private loans. Even if these kinds of services cannot use the low rates being offered when refinancing federal loans, they can still offer benefits to the borrowers.

The benefit includes making just one payment every month and, since the terms of the loan have changed, it reduces the amount the individual has to pay on a monthly basis. The catch, of course, is the resulting higher interest payment throughout the life of the loan.

A number of institutions have provided private student loan consolidation services in the market including Chase, Wells Fargo, and NextStudent. When looking for a lender to refinance the loans, a few questions need to be asked such as whether the interest rates are fixed or variable, whether there are any fees involved, and whether there are penalties in the prepayment of the loan.

Consolidating federal loans, on the other hand, can reduce the monthly payment up to half and lock-in on a low fixed interest rate.

Additionally, the borrower can bundle all the loans into one manageable loan resulting to just a single monthly payment. They will be able to obtain of the service without additional application fees, origination fees, and prepayment penalties involved.

It provides the option for borrowers to select from the various terms in repaying their consolidated loans up to 30 years. Several lenders have also provided this kind of service.

Consolidating student loans is a wise approach in obtaining more flexibility in managing personal finances particularly in this environment where many continue to be in financial turmoil.

Do you want more information about student loan consolidation services? If so, check out Click that link now!

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Monday, March 14, 2011

Student Loan Consolidation - A Way to Save Money

By Juhani Tontti

So you have a great need to use every penny as smart as possible, i.e. to get the biggest benefit from every dollar. If you have several student loans, both the private and federal ones, you can save money with a simple student loan consolidation, even hundreds a month!

1. The Student Loan Consolidation Can Be Done For Private And Federal Student Loans.

Student loan consolidation can be done for both the private and federal loans. The consolidation is a great tool for simplifying the monthly bills providing an immediate payment relief and the long term benefits. However, it is important to note, that the federal loans must be consolidated as one separate group and so must the private debts too. You cannot mixed them.

As to the federal loans, which you can consolidate only once, the interest rate will be fixed during the rest life of the loan. When you can do the consolidation during the grace period, it is the deal with the fortune, which interest rate you will get. You do not have to go through the credit check and there is no application fees

2. The Debt Refinancing.

If in your case you have just graduated and got the work, your credit score may have improved compared your student times. Now when you will do the consolidation, you will refinance the interest rate and the repayment time. This process is the most effective thinking the cost savings.

3. Consolidate During The Grace Period, You Can Reduce The Interest Rate By 0,6 %

When you consolidate during the grace period, within 6 months after the graduation, you can save in the interest rates by 0.6 %. During the times, when the interest rates are historically on a low level, just by renegotiating the interest rate can bring the much needed help.

4. How Much Are The Savings?

The ideal situation would be the one, when the interest rates are historically low. Then by consolidating and refinancing the whole debt package, you can get the maximum saving. To take examples, if your student loan is $ 10.000 and you extend the repayment time from 15 years to 25 years, you can save over $ 230 a year. With the $ 100.000 debt the saving is over $ 2.400 a year without the interest rate changes.

5. Start To Calculate The Benefits From The Present Loans Consolidation.

When you think the student loan consolidation rates, you have to take into account two things: your present loan terms consolidation rate and the future rates after your student loan possible refinancing. It can happen, that only the new interest rate brings the saving you need and there is no need to extend the repayment time.

However, remember that you can consolidate the debts only once. This means, that it may be wise to plan your monthly payments so, that your monthly expenses will be on the lowest possible level. This is a careful plan and will help you, if you will meet sudden changes with the incomes or living costs.

Juhani Tontti, B.Sc., Marketing. You can do the school loan consolidation only once during the 6 months grace period. The student loans will be changed as one loan. Visit: student loan consolidation

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Monday, February 14, 2011

Student Loan Consolidation Company - 3 Tips For How to Find the Right One

By Robbie T. James

Having a lot of student loans can feel like a burden. After all, life has enough expenses for most of us to deal with: just to get by month to month, we have to pay for housing, food, medical bills, and transportation.

Sure, anybody who has had the opportunity to go to college is probably pretty grateful for having had that privilege. And, it is a wonderful thing to have access to loans as a vehicle for paying for that education. But still, that does not change the fact that they can be more than a little bit difficult to pay off.

One way to potentially reduce your monthly student loan payments is to find a student loan consolidation company and consolidate your student loan debt. This is ideal if you have more than one student loan. By consolidating, you can reduce your monthly payments by potentially lowering your interest rate and stretching out your payments over more time.

Student Loan Consolidation: Federal Or Private?

The first decision you will need to make is whether you should consolidate with a private lender or with a federal consolidation program. The decision is an easy one to make, once you know how it works.

Basically, you should consolidate with a private lender if your existing loans are private loans. However, if your current student loans are federal loans such as Stafford, PLUS, Federal Perkins, or HEAL loans, you should go with federal consolidation.

Private Consolidation: How Lenders Determine Your Interest Rate

When it comes to private loan consolidation, it is important to understand how your interest rate is determined. Essentially, it is a combination of two factors: 1. the current standard rate such as the prime rate (or LIBOR) rate, and 2. your credit score. Your credit score determines how big the spread (or margin) is that is placed on top of the standard (e.g., prime) rate. The better your credit score, the lower your interest rate.

Your consolidated loan rate is usually a fixed rate, and you can choose your loan terms (e.g., 15 years, 20 years, etc.). But first, you will need to choose a consolidation lender that will offer you the lowest rate.

How To Find The Right Student Loan Consolidation Company

Here are 3 tips for getting the lowest rate on your private consolidation loan:

1. Make a list of at least 5-7 consolidation companies: As with dating, looking for a job, car shopping, and pretty much anything else in life where choice is involved, more choices are always better when you are starting out. Of course, at some point you will need to reduce your choices down to a reasonable number. But, start with as large a set of companies as possible.

2. Narrow your list down to 3 companies: Do online research on the companies you have found. Look at factors such as how long they have been in the student loan consolidation business, any low advertised rates they show, and the terms and conditions of their loans. Also, pay attention to whether the company feels like one you would want to do business with.

3. Apply to all 3 companies: Now, be sure to apply to all 3 companies. It will be easy to want to stop applying once you get an offer, but this is not the time to be lazy! Just a bit of extra effort could land you a lower rate which will save you thousands over the life of the loan.

Follow these 3 tips to find the best deal out there for you on a student consolidation loan.

Get access to the best student loan consolidation rates at: Best Student Loan Consolidation Rates.

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Friday, January 14, 2011

How to Determine if Student Loan Consolidation Companies Are in Your Best Interest

By Charles Gloson

When you start dealing with student loan consolidation companies you are going to find that there are a great many people that are willing to help you, work with you, and figure it out with you. There are more student loans that are outstanding at this time than any other time in history. This is an obvious effect of the economic situation that wasn't so obvious four to six years ago.

Now, with the apparent difficulties that recent graduates are noticing when it comes to paying their student loans back, many have no choice but to investigate student loan consolidation companies or default on the loan.
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The good news is that loan consolidation plans can be highly beneficial when it comes to developing a monthly payment arrangement that you can actually afford. For many people, the consolidation companies are the only ticket to managing all of their numerous and varied financial responsibilities.

A student loan isn't like a car loan. Most loans are deferred until after you graduate or spend at least six months out of school. When you enter into a agreement it is nearly impossible to tell what kind of financial situation you are going to be facing. Your agreement is at best, a hopeful guess at how well you'll be doing.

Because if this interesting twist, you end up with two choices. You can either stat enrolled in school indefinitely or you can employ the services of a student loan consolidation company. Either way, it is unlikely that you are in the position to pay off the loan as initially planned.

One of the most important aspects of getting out from under the situation is clear and simple. How much longer will you be paying on the loan and what does this do to your credit? In some cases, you won't be paying on the loan that much longer. The idea of consolidation is to lower your monthly payment by combining the payments and lowering the overall interest. However, in order to drop the payment, sometimes the terms of the loans are spread out for a longer period of time.

Additionally, agreeing to an arrangement can and most likely will have an impact on your credit. You just have to weigh that impact with the potential impact you would see if you were unable to make any more payments on your loans. This is a situation that only you can really determine what is best. Overall, the student loan consolidation companies can do their best to answer your questions while giving you the information that you need in order to make the best financial decision possible.

Can you refinance student loans after consolidation? What are the best options to consolidate private student loans? Get all the answers you need and more at

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