Loans are almost inevitable for many people. If you ever want to buy a house, buy a brand new vehicle, or go to college or university, there is a good chance you will have to take out a loan. Going to college is a huge source of loans for people, especially for those going to a very expensive college.
When you get your tuition bill, the first thing you do is think about how you are going to pay for it. Do you get any financial aide? Do you have any scholarships that can help pay for it? Do you have any money saved from your job? Will your parents help pay for any of it? When all other sources of money are gone, you turn to loans.
Now that you have graduated from college, you probably have a wide variety of loans to pay off. The Stafford loan is a very common student government loan. It is offered in a subsidized or unsubsidized version. If you were lucky enough to get an unsubsidized Stafford loan, the government has been paying the interest for you throughout college. You may also have a Perkins loan, Graduate PLUS loan if you went to graduate school, personal loans, private loans, and credit card debt from cards you used to pay for tuition, buy books, or use throughout college. These add up to a lot of money that you owe.
After college, you either go to graduate school, get a job, or do both. Most people can’t afford to continue to go to college full time, so they get a job and take graduate classes part time. If you get a well-paying job, that is great. You can quickly pay off your loans, save for a house, and get going with your life. If you decide to go for more professional schooling, such as medical school, dental school, or law school, you have several cheap living years ahead of you and more student loans to tack on. Usually this works out because you can make a lot of money with these careers soon after you graduate.
If you are unfortunate enough to get a low paying job out of college, as many are, you can be in a tight situation. Even with a degree, it’s hard to get a high paying job out of college. It will take years of experience, promotions, and raises to get to a comfortable income. The real problem is that most if the big expenses occur when you are young out of college. You need to pay off your loans and try to save.
If you have lots of loans and the payments are outrageous, you can soften the blow. Try to consolidate your student loans. If you have several government loans as well as private loans, you can consolidate them into one loan with a lower consistent interest rate and effectively lower your monthly payments. This can be a huge help when you are just starting out.
If you are looking to find answers covering how to consolidate your student loans before your debt brings financial troubles, it is important to know that proactive choices work the best. As with any type of debt, student loans are no different in that the bigger the problem, the harder it is to recover.
It is important to understand your full debt obligations. How much money do you owe, to what agency and at what interest rate? Discovering the full story may be overwhelming, but the sooner you work at taking care of the debt the better.
When student loans originate from private lenders, consolidation options are subject to current credit scores and/or value of assets which could be used as collateral. Banks and private lenders look for existing proof that you can handle money management situations correctly before they are willing to approve a consolidation loan. When there is something to be used as collateral or person signs as a guarantor for the loan, a borrower may be able to consolidate their loans into one low monthly payment.
Private loans tend to carry higher interest rates than the Department of Education. If you have federal loans, you will want to try to consolidate those separately. Pay attention to your interest rates. Fixed rates will remain on the loan until it is paid off while variable rates will fluctuate with the market. You instrumental loan monthly costs will change throughout the years.
When it comes to federal student loans, learning how to consolidate them may take some time. The Department of Education (DOE) not only offers several types of loans, but there are also multiple student loan debt relief options as well.
There are different programs for certain types of loans as well as forgiveness programs for certain professions. If you contact the DOE to gather information on your loans, you will want to have on hand the details of your personal situation. You will also want to have on hand extra time as well as lots of patience. The hold times on the phone can be quite lengthy.
Working with the DOE is free and if you have the time necessary to wait for answers, it can be done. If you want to find the most qualified savings and enjoy having time to yourself, you may want to do as many other debtors do, hire a service that will do it for you. The extra cost will seem like a drop in the bucket when you find out that consolidating your student loan debt with an expert service like NSLR brings immense long-term savings.
Loan forgiveness programs are set up to relieve a chunk of debt. Depending on the loan and employment factors, a person in the public service field may be eligible to have up to $17,000 of debt forgiven. Once the total amount has been lowered, consolidating the debt will bring even more monthly savings. You don’t want to miss out any available program when searching to find out how to consolidate your student loan debt.
If you are looking for student loan help, National Student Loan Relief (NSLR) is the right place to start. We work hand-in-hand with the Department of Education to efficiently relieve Federal student loan debt. Visit National Student Loan Relief at http://www.nslrelief.com/ for more information.
If you’ve been wondering lately “What is loan consolidation?” then you are in luck, because education loans are about to get a whole lot easier to pay off.
President Obama student loan proposals are now impacting college debt consolidation and federal loan repayment for millions of college graduates.
However, while the advantages of federal student loan consolidation are plentiful, so are the pitfalls. It is important for federal student aid borrowers to understand the risks and rewards when they need to consolidate their educational loan.
Advantage #1 – You will save time and money. No fees, simple paperwork process. No refinancing decisions based on your credit rating. The new program is reportedly available only from Jan. 2012 through June 2012 will also be offering a slight deduction for selecting the automatic debit option in repaying your loan. This not only helps you make timely payments, but it also helps reduce the amount of interest you’ll be charged over the life of your federal direct loan.
Advantage #2 – You may improve your credit score by avoiding default. Consolidating education loan debt could be the ticket to staying current and not defaulting on your financial obligations. These types of loans cannot currently be discharged for dismissed (except for loan forgiveness programs); not bankruptcy, not by hope and prayer. Not by ignoring the threatening collection agent letters. These loans must be repaid! So by consolidating, getting a smaller monthly loan payment, and sticking to a repayment schedule consistently, over time you will pay off your debt. Federal student loan consolidation then gives you a path to resolving your financial problems related to college debt.
Advantage #3 – You will avoid frustration by only having one bill to pay each month. Having to keep track of 2 or 3 different bills each and every month can seem daunting; so, by consolidating into a new federal loan consolidation program, you will not only lower your monthly bills. You’ll also lower the number of checks you will have to write and mail each month!
College was worth the price of admission. Your college degree opens many new doors to career advancement now and in the future. But now, repayment of those college loans looms large. And the new federal student loan consolidation program available for only six months by the U.S. Department of Education (Jan. 2012 – June 2012), could be the winning ticket to taking advantage of direct loan consolidation.
There are also disadvantages lurking around the edges of the new federal and private student loan consolidation programs: Some consolidation programs make you ineligible to get your loans forgiven if you later enter a qualifying career. Some federal loan consolidation programs exempt certain types of loans, and loans that were taken out at an earlier time period. Oftentimes, old loans carry a lower interest rate, so consolidating those at a higher level of interest makes no sense. Remember to compare options; your student loan consolidation rates should at the very least be better than you can get from a private federal loan consolidation program.
But the U.S. Government’s Dept. of Education website now offers a variety of loan calculators aimed at helping college graduates have access to online tools aiming to help them compare loan consolidation packages and help them determine the best way for them to pay off college expenses.
The official ed.gov website is undergoing a number of updates after President Obama’s student loan forgiveness plans came to light in the media. By providing comprehensive details on various ways to finance a college education, this website will ultimately offer yet another advantage to those seeking federal student loan consolidation.
While paying off these loans may never be easy, making the sacrifice and the commitment now to honor your loan commitments will pay off in other ways: You will earn the satisfaction of having followed through with one of your major financial commitments you made early in your adult life. And, you will demonstrate to yourself and to future creditors that you are an excellent credit risk.
Therefore, the advantages of federal student loan consolidation are obviously a goal you’ll want to consider as you dig yourself out of debt.
Steve Johnson is a writer and publisher of FindHow2.com, offering hundreds of free helpful articles on restoring good credit, debt reduction tips, and personal financial management. One of the most popular topics at FindHow2.com includes free listings of student loan forgiveness programs to pay off college debts.
Federal student loan consolidation has become one of the leading solutions to student loan debt. With most graduates leaving college with over $20,000 in debt, consolidation is increasingly an option to handle payments. The government has taken this debt seriously by offering several programs with consolidation as a one, to help young adults afford the payments.
It can be a financially tough road entering the job force after graduation even without hefty student loan debt. Many graduates are choosing to move back in with their parents in order to keep costs low while starting their careers. Some graduates are choosing to defer their loan payments, pushing them back until they have a chance to get on their feet. This option will help those who are able to start their careers quickly, but for those who are not so lucky or decide to change their life goals, these loans will only increase sitting in deferment. The sooner payments are made the better.
Student loan consolidation programs will bring long term debt relief. Juggling multiple bills and due dates on its own is a challenge. Those who are new to budgeting for cost of living demands will appreciate the simplicity of consolidating student loans for both Federal and private loans. These two types of loans are typically not consolidated together. Even if you consolidate them each on their own, having two smaller monthly payments will be much easier to handle.
*Group your Federal loans together into one payment. The smaller monthly cost(s) will help keep a budget strong.
*Consolidation will help loans in default get back on track while putting a stop to tax offset. Federal loans in default can and will get paid even if it is from taking some or all of your tax return.
*You may be able to get a better interest rate than the initial loan. Lowering your interest rate will help decrease the long-term final cost of your student debt.
Once you decide to take the step to consolidate your Federal loans, you will want to make sure you do not qualify for any other type of relief. There are forgiveness and income-based programs which may bring additional help prior to consolidating the loans. The forgiveness program will lower debt amounts which can then be consolidated, but income-based programs are separate. Debtors will want to know which program works best for their own personal situation. It can be quite a complicated process so finding a service that works with the Department of Education may promote the best results.
The income-based programs will help with those with lower paying jobs, like public service workers. Monthly payments are capped according to the debtor’s salary. The payment is based on a certain percentage of income. If there is an increase in salary, then the monthly payment will go up as well. After 25 years of payments, if the loan is not paid off, then the remaining balance is forgiven. One down side to this program is that if a person has already been paying on the loan, these payments will not count as time towards the 25 years. Once you qualify for the program, the clock will be set back to zero.
Don’t jump at the first chance to get help with student loan consolidation programs; take your time and research your money options.
National Student Loan Relief helps individuals gain financial relief from their Federal Student Loans. Contact us at 1-800-680-8533 or go to http://www.nslrelief.com for more information.