Guru Student Loans

Options With Student Loan Consolidations

2008-11-09T06:49:00.000-08:00

Congress has recently decided to change rules for student loan consolidations.

One of the changes effects the payment of student loan consolidations, both for federal and for private student loans. The payments will now be based on the student's income. If a student can show that he or she suffers from 'partial financial hardships' then the payments made monthly on a student loan consolidation will be limited at about 15 percent taken from a students current income, instead of a set price for every student. This is a part of their College Cost Reduction Act along with their Access Act. Those changes will take effect the year 2009 as of July first.

For those students that spend at least ten years in what the government considers to be a qualifying public service position, for example teaching or maybe charitable work, then the remaining amount of a students current loans can be forgiven. Unfortunately, it is only with the loans that are funded directly by the federal government. This option became available for students on October first of the year 2007.

As of July 1st 2008, those students who move FFELP or Federal Family Education Loan in a direct loan program by using a loan consolidation plan can also qualify for the above.

Just pain consolidating student loans is also an option. A lot of the time students will consolidate funds in order to extend the amount of time they have to pay, and lower the monthly payments that they make. When they go to consolidate their loans, students have many things to look for, and many benefits they can get from consolidating their loans.

One reason why students use student loan consolidation is the escape from changing interest rates that randomly go up. Some are just looking to make fewer payments a month and a lower payment at that.

When choosing to use student loan consolidation, timing is essential. Instead of just picking one at the spur of the moment, a student should wait until after the US Treasury Bond Auction. This generally occurs in the very last week of May, and takes effect on the first of July. This usually gives each of the loaners to take a month to decide if it would benefit them to do consolidations under their current rates, or if it would be better to wait until the new rates take effect in the beginning of July. And it will give a student a chance to look for lower fixed rates.

Since private loans are not the same as federal loans, therefore these new rules that apply to federal student loan consolidation do not apply to private student loan debt consolidation. For this reason federal loans can be used only to consolidate the loans that are backed federally and private loans must be consolidated using other private consolidation methods.

If you are, or know a student who is currently looking for student loans, it is always better to use federal student loans, and federal student loan consolidation options. If you go to consolidate all of your loans you need to be sure to have two groups, one federal student loan consolidation and one for private student loan consolidation.

School loan consolidation doesn't have to be a major headache. By doing research on the Internet and using free student loan debt consolidation resources you'll be able to find a program that will save you money and headaches!

Article Source: http://EzineArticles.com/?expert=Hassan_Zaka

Student Loan Consolidation - Making Many Loans Into Just One

2008-11-09T06:47:00.000-08:00

By Michael Geoffrey

If you have several different loans all due to different days, you have no doubt realized how difficult it is to keep track of them. Since most college students are working hard at their new career that they spent several years studying for, it can become very stressful to try to stay on top of due dates for five loans or more.

You can greatly reduce the amount of time and stress that goes into paying your student loan debt each month by means of student loan consolidation. The student loan consolidation process fuses all of your debts into one loan. That way, you will only have one due date each month to worry about.

Student Loan Consolidation: What to Think About Beforehand

It is true that student loan consolidation is an attractive prospect to individuals who owe money on several different student loans. Remember, though, that there are pros and cons to every financial decision. Doing some research into student loan consolidation will allow you to make sure that your new consolidation loan terms are better than those of your current student loans.

You should thoroughly investigate all the details of the student loan consolidation process before you agree to make all of your student loans into just one consolidation loan. Since each lending institution that handles student loan consolidation will have a different offer, compare them, especially the interest rates. You want the best payment scheme and lowest interest rate possible.

It would also be wise to try to negotiate the terms of your loan, including the interest rate, before you sign a consolidation agreement. You should be able to get a great loan with a very low interest rate if you are able to prove that you have paid your previous debts in a timely manner and your credit score is good.

The bank or financial institution which you work with wants to get as many good customers as they can. So if your credit is in good order, you can expect to be catered to when it comes to your consolidation loan terms. The negotiation process will be more difficult for you if your credit score is not so good.

Before you decide to cut up credit cards to help you get out of debt, you need to understand how it can affect your credit score. Find out what you need to know first on the Debt Smackdown website.

Article Source: http://EzineArticles.com/?expert=Michael_Geoffrey

Student Loan Consolidation Fraud - Beware of Scams

2008-11-09T06:45:00.000-08:00

By Michael Geoffrey

Since most college students are known for not having a lot of money, it would seem unwise for a thief to target them. Still, some people are willing to steal even from college students who are already strapped for cash. Thanks to lots of good press in recent years, the many benefits of student loan consolidation have been clearly presented. You can successfully avoid becoming involved in student loan consolidation fraud by using some common sense.

Student Loan Consolidation Fraud: Social Security Number Scam

One scam that people use to commit student loan consolidation fraud uses emails and phone calls that supposedly come from well established financial institutions. They contact students, claiming to work with student loans. They often ask for background information and sometimes are able to get names, phone numbers, and email addresses of students who have applied for student loans. These scams will ask you to verify their information with part of, if not all of, your social security number.

This scam is not new. For many years a similar scam has been spammed to countless email addresses, asking recipients to "contact our security department immediately". The emails these scammers use can look quite official. These tricks have worked before, most famously with PayPal and eBay users.

What to Watch Out For

Student loan consolidation scams also utilize emails, mailings, and phone calls that contain the following signs of fraud:

- Impossibly low interest rates

- Spelling and grammar errors

- Letters or emails written exclusively with capital letters

- The address of a company you have never contacted before

What to Do If You Have Been Scammed

The first thing you should do if you believe that you have been scammed by student loan consolidation fraud is to right down details regarding your interactions with the company. Then, contact your creditors and the Better Business Bureau so that they become aware of the scam.

Is credit counseling the ideal way to get out of debt? Possibly, but there's no single best way for everyone. Visit the Debt Smackdown website at http://www.debtsmackdown.com for more helpful tips & advice about getting rid of your debt for good..

Article Source: http://EzineArticles.com/?expert=Michael_Geoffrey

Government Debt Consolidation Loans - Consolidate Your Federal Student Loan Debts

2008-11-09T06:42:00.000-08:00

By Paul Sarwana

Are your debts becoming too much of a burden for you? Well, your country can help you deal with this crisis in the form of government debt consolidation loans.

Although, there are many debt consolidation loans that you can consider to can help pay multiple creditors through a single monthly payment. Your best option still may be the several government backed debt consolidation loans that the federal government offers its citizens due to various reasons.

What are Government Debt Consolidation Loans?

These loans are made available by the federal government to help you pay multiple loans and creditors using similar principles of debt consolidation like any other private program. The loan allows you to consolidate multiple loans into one. This way you only need to make one single payment each month rather than three or four.

As you already know, in most cases the loans are high-interest unsecured ones; therefore converting them in to secured loans is bound to be beneficial for the borrower as it leads to low interest rates. They save you money and make your financial planning and budgeting easier.

Debt Consolidation for Federal Student Loans

Students who have multiple federal student loans to fund their educational expenses can benefit from government backed debt consolidation loans. Government backed loans help make repayment of the loans feasible for student or parents - without the hassle of having to deal with multiple loan payments every month.

There are many loans offered by the government that are designed to help out students. There are two programs under the Higher Education Act (HEA) which can allow consolidation loans. One program is Direct Consolidation Loan Program and the other is FFEL or Federal Family Education Loan program.

In the program, the Direct Consolidation Loan program, the US Department of Education helps students through debt consolidation loans to pay off education loans. After that, a new loan is issued to the student which contains the consolidated amount of all the old loans.

In case of the FFEL or Federal Family Education Loan Program, the borrower is provided with a new consolidation loan which can be used to pay off any loan that the student might have and not just educational loans.

Government Student Loan Repayment Plans

The government debt consolidation loan programs offer four different plans to the borrower, they are:

1. ICR or Income Contingent Repayment plan
2. Extended payment plan
3. Graduated payment plan and
4. Standard plan

Each plan provides the borrower with different features to meet the requirements of the individual. This provides flexibility which is a key factor in any debt consolidation program.

Consolidating your debts can help simplify your repayment process, as all of your existing loans may not have similar payment dates and terms. You pay back different types of loans with the help of one single loan. The amount that you would need to pay every month should be lower and the pay-back may also get stretched to ease the repayment process. At the end of it all, getting a government debt consolidation loan also increases the chances of paying back your loans on time.

Read on to learn how to get government debt consolidation loans, plus get more tips on how to choose government debt consolidation loan lenders at http://www.DebtFirms.com/.

Article Source: http://EzineArticles.com/?expert=Paul_Sarwana

HOT ADVICE ON STUDENT LOANS

2008-10-14T11:02:00.000-07:00

Sticker shock isn't limited to cars. It applies to the money you will need for college student loans. Since the 60's the cost of a college education has increased almost nine fold.

The first thing to remember about a student loan, that it really is not an expense, it is an investment, in yourself. A college education can lead to a more rewarding job and greater earning capability throughout your career. Studies estimate that you will 80% more over your life with a college degree versus a high school diploma.

Student Loan Steps to Follow

To determine how much money you will need for a college, and subsequently a student loan, follow these steps:

Pick A College: Find the college that is right for you.

Tuition And Fees: You can use our site to research all the tuition and fees for colleges and universities in the US.
Determine Related College Expenses. Be sure to include travel to and from school, college text books, room and board, college tuition, personal expenses, etc.
Calculate Your The Money You Have Saved For College:
Determine Your Income: Or your parents income if they are going to help you with a student loan. But, if you plan to work during school, estimate your earnings.
Go To Class: You must maintain at least half-time enrollment, which generally is six credit hours.
Receive And Review Your SAR: The Student Aid Report arrives about one month after you submit the FAFSA. Your SAR includes your "Expected Family Contribution" or EFC, which your school will use to determine your eligibility for various types of aid, including student loans.

With the above information you are ready to apply online for a student loan.

Student Loan Tips

Investigate And Understand: Do thorough research as not all student loans are the same. Some interest rates may vary, the time frame to pay pack your student loan will depend on the program, grace periods and penalties for late payments also vary.
Manage Your Student Loan: Watch your mail and pay attention to deadlines. If you have questions contact the the lender for the student loans or the college coordinating the information. Be sure to attend all required Entrance and Exit Sessions.
Understand Your Student Loan Requirements: You must complete loan counseling sessions when you first obtain a student loan and upon graduation. These sessions detail your rights and responsibilities as a student loan borrower.
Pay The Piper: If you can, pay interest on any unsubsidized loans. The small payments you make will reduce your overall debt so your total to payback will be lowered.
Go To Class: You must maintain at least half-time enrollment, which generally is six credit hours.
Investigate Tax Savings: Your tax advisor may be able to determine if you qualify for tax credits, such as the Hope or Lifetime Learning Credit.
Stay In Touch: Keep your lender advised as to your address changes. It is not their fault if you move and forget to tell them. If you are late on payments, it can impact your credit.

Types Of Student Loans

Financial Need Student Loans - Subsidized Stafford Loans: This loan has a low interest rate and is from the federal government for students with financial need. Interest doesn't begin accruing until after you begin repayment.
Non-Financial Need Student Loans - Unsubsidized Stafford Loans: Similar to the subsidized loan, but not based on financial need. Interest begins accruing while you're in school.
Federal PLUS (Parent Loan for Undergraduate Students): A Federal PLUS is not based on financial need of the student. Parents of undergraduate students can apply — regardless of family income or financial assets.
Private Loans: There are companies and banks that provide private student loans for both undergraduate and graduate students. Only borrow what you need as the interest rates on these student loans are often higher.
Home Equity Loans And Lines Of Credit: A home equity loan or line of credit is one way for homeowners to pay for your college education. A possible advantage is tax deductible interest.

STUDENT LOAN CONSOLIDATION

2008-10-14T11:00:00.000-07:00

Everyone has things about his college experience he tends to throw out after graduation. Whether it was the pictures of the spring break in Panama Beach or the textbooks you couldn’t sell back, we all have things we want to put behind us as we head out into the work force.

Student loans however, no matter how small, cannot simply be forgotten. Student loans were so easy to get in college, and so easy to forget. Your first bill may arrive right after you graduate, ushering in your new bill-paying, over-financed life.

You also may have a hard time paying off your loan if you're too busy paying off the credit card you were given a t-shirt to apply for. Luckily, borrowers now have the opportunity to receive some of the best student loan consolidation fixed interest rates ever.

By consolidating, borrowers not only reduce their long-term debt but also can help change their credit score for the better over time. An improved credit score will be important when a person enters the working world and wants a new car, apartment, or charge card. Here are some tips for borrowers that can help them as they enter the job market.

More Open Accounts = Lower Score: Over a borrower’s life, he may have taken out up to eight separate loans to pay for school. Each of those loans has a different payback amount, interest rate, and payment terms. The more credit and loan accounts a person has open, the lower his overall credit score. Though by consolidation, older accounts will be merged into a single account, thereby lowering the amount of open credit lines on a credit report.

Lower Payments = Higher Score: When a credit report is evaluated, the total amount of a borrower’s monthly minimum payments is taken into account. When you have multiple loans, each of the payments is part of a borrower’s monthly payment obligation. Borrowers who consolidate have only one payment to make, which is typically lower than the minimum amounts of the separate loans.

Your Debt To Credit Ratio—It Matters: Credit bureaus typically determine if you're in debt by evaluating the amount of your available credit you actually use. If you have a total of $10,000 available on three credit lines and you owe $2,000, your score will be higher than if you have maxed out your one credit line with a $2,000 limit. If a borrower has multiple loans with a maximum used, it will reflect negatively on the person’s credit score. So it is important to consolidate accounts in order to reduce the number of open accounts being used.

Consolidation can help most borrowers in many ways, but rates won’t stay low forever. They are so low now; the only place for rates to go is up. If you are on your way out of school, you’ll need to save every cent you can in this tough job market.