Wednesday, July 28, 2010

5 Reasons Why Student Loans Consolidation Lowers the Monthly Payments

What makes this situation is more complex, normally a student loan is not sufficient to fund education, but a student will have a number of loans to different lenders in both the private and federal.

This leads to a situation where a student has a number of loans from different donors, each with their own back pay, interest and other conditions. If payment is returned over a student can see the complex and start thinking about consolidating student loans.

1. What average student loan?

The process of consolidation of student loans means that a student or graduate today, will consolidate all loans into one loan. What happens to all old loans will be repaid with the new loan. However, federal and private loans can not be combined.

Thus, the new loan to simplify the management of the loan, but no reduction in monthly payments. If necessary, a graduate also renegotiate the payment schedule of return, monthly payments, he or she can achieve.

2. The requirements of better credit rating can reduce the interest rate paid.

When student loans were taken, a student may have worse credit score, which increased the interest of its loans. Now he has graduated and is working, he has a chance to improve credit score, which is an immediate drop in average credit score and therefore lower monthly payments.

3. You can consolidate with your spouse.

Yes, consolidation of student debt is made by the spouses, but this is generally not recommended. One reason is that if you divorce, then it is the payment of student loans.

4. Where can I consolidate?

Most federal loans can be consolidated, including FFELP and FISL and most private loans. Usually, banks and other lenders offer consolidation options that are called, but you can walk directly to the Ministry of Education to resolve the problem. Note that students and parents can use to consolidate student debt.

5. The main advantages.

Usually, the monthly payments consolidated loans are lower than the original loan. It is also a flexible solution, because you can change the rate of a variable in a fixed or extending the payment of 10-30 years, reducing monthly payments. You can deduct interest from taxes and pay more than the plan without penalty.

Tuesday, July 20, 2010

5 Reasons to Consolidate Student Loan

Debt burden of heavy student loans is never fun. According to the total amount of debt you have and what your cash situation feeling that range from a minor annoyance to something that is downright painful.

What compounds the challenge of student debt for many graduates is the fact that several payments to different lenders to make each month. Moreover, some loans at floating rate loans, which means that the actual amounts vary over time depending on factors such as the prime rate. And then there was that pain in the neck to deal with all these payments each month.

Fortunately, there is a practical way to this situation that many graduates benefit: the consolidation of student loans. This is mainly to repay all your existing loans with new loans, all loans rolled into one loan with one of your existing lenders or new.

If you're on the fence whether consolidation is good for you, here are five reasons to consider consolidation:

1. Simplify monthly payments:

By consolidating, you will see a monthly payment. This means less paperwork. And with a single payment, you can easily monitor your household expenses.

2. Get a fixed rate:

Almost all consolidation loans are granted at a fixed rate. This means that you can count on your payment will not change over time - until the loan is repaid.

3. Reduce your payments:

consolidation loans, you can spread your payments over time, which can lead to significantly lower payment. For example, your repayment period is extended to 25 or 30 years (from a 10 or 15 years now).

4. Calculate the convenience Early Payout More:

With only a loan and rates, you can easily calculate the financial projections and long-term responsibility for your household, including the effects of a possible future payment at the beginning of your loan.

5. Dealing with one lender:

If you need to talk to your lender at any time during the term of your loan to repay, you can easily and effectively done simply by contact lender instead of two or three. Can not be much simpler than that!

Monday, July 12, 2010

Finding Free Money For College - Using Upromise to Avoid Taking Out Student Loans

Report from parents that they have saved thousands of dollars to the university of their child 529 savings programs, all with money given to them free. Programs like Upromise team with hundreds of famous retailers, to give money back rebates on everyday purchases like gas, groceries, restaurant meals and travel. One parent said she has already recorded more than $ 2,000 for the school education of his son, who was immersed in 529 savings and discounts earned by retail purchases or cash back rebates earned from her Upromise credit card (which gives you 1% cash on all purchases, and more on purchases participating retailer).

"Upromise is a program that each parent must sign. It is free to register and easy to obtain rebates, which are equivalent to money in your savings account. You can even upload your student loans, or simply a request to verify and get the money, but do you want. If all parents have signed up for this program if their children are born, they would probably have to pay for education or school without ever really committed to their own money. I know I'm over $ 2000 at the University of Upromise my son's 529 plan (free money for them) in just over five years. Imagine if I had started when he was born. "

The money gives Upromise members of its retail partners, including:

* More than 700 online retailers, including Best Buy, Ebay, Old Navy, Sears, Expedia, Apple Store
* Nearly 8,500 restaurants
* More than 21,000 grocery and drug stores like Kroger, Safeway, Fry, and much more
* Other companies such as rental cars, service stations and dealers

Here's how it works. You just need to store or use the services of one of the partners above. Upromise and gives you a discount on your purchase, for example a 2% discount on Best Buy. Then, each quarter when your Upromise account at least $ 50 in her savings will be automatically sent to your 529 college savings account coupled or Sallie Mae student loans. Or you can simply ask for money will be sent by check.

Upromise states on their website they are currently more than 500 million dollars to save its members money to the university, making it an important source of private funding for university education.

In addition, Upromise provides a way for friends and family, including grandparents, a link to your account so that their rebates online shopping can earn your college savings program. They also offer their own credit card that you have 1% on all your purchases, and more on purchases from participating retailers.

Saturday, July 3, 2010

Federal Student Loan Consolidation Programs

With the increasing price in education and demand for a better life, most students tend to take up more than one federal education loan during their university period and later for their continuing education. In most cases students do not understand the added responsibility that comes with these loans. The major problem comes when they have to repay several loans after their college ends, this is when most students start realizing the cost of loans taken and look out for ways to minimize their monthly expense.

This is when student loan consolidation comes into action for many students. Loan consolidation can significantly reduce the amount of loan taken from private or federal lenders by combining the total amount into one loan which helps the student to pay for only one bill at the end of month. Moreover the interest rate of such a loan is quiet low compared to private student loans which is another fact why they are much more popular among students.

An average graduating student gets a degree along with a $20,000 loan to pay back, this amount can be considered high when comparing the student's situation at that period of time. Living in the transitional phase from changing career and with their first step in the real world these students normally lack the ability to carry their financial burden successfully upon their shoulders. Considering this fact the government offers federal loan consolidation programs that can mitigate the need of paying numerous bills each month. The new loan offered by the federal government student loan consolidation program is a fixed rate loan unlike any other student loan, these loans are very easy to apply for compared to other federal loans for regular students and can also help you to save a lot of money at the end of repayment period.

Unlike other loans, a federal loan consolidation program should be for more than $7500 and has very few background checks. The student should not worry about the eligibility requirement as the lender will verify everything with their own resources.

Once approved the lending company will pay all the previous loans taken by the student and the student has only to pay the new loan amount with a lower interest rate in an even longer period of time. These student loan consolidation programs come with various repayment periods which are lower than many other federal loan programs, thus students can use the grace period to further reduce their rate of interest. A major advantage of consolidating your loan is that it gives you time to settle down after your college period, most students can not find a job instantly they leave their college which can be an added pressure on students who already face problems of repaying their loan. Consolidating several loans you can get enough time to think about your career prospective and decide to choose a better paying job than choosing a less attractive job with low pay only to pay for your education loan.

If in case a student can not get a student loan consolidation program then they can use the regular debt consolidation plans too consolidate their student loans but these general loans can cost them more than an average student loan consolidation program as these loans are meant to be sold with higher interest rates and low repayment period.