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How To Consolidate Student Loans

March 11, 2012

How To Consolidate Student Loans

Consolidate Student Loans

For those asking the question of how to consolidate student loans that have either a vague or zero understanding of how the consolidation process works, well to make it simple consolidation is when you basically group together all of your loans, student loans in this case, and only pay one payment on the total sum of all your student loan debt. The simple act of consolidation will not only provide you with the benefit of only having to pay one monthly payment to one lender, it can also lower your interest rate as your interest reate will be around the average of all the loans interest rates that you are consolidating, as well as lower the monthly payment.

Lower payments are always great but they come with a price, which the lower payment will mean an extended repayment period which will both keep you in debt longer as well as you will pay more over the life of the repayment compared to paying to off with a shorter repayment term. But the good thing about having a longer repayment term is that it will give you time to get a job while you have a low monthly payment, then start paying larger payments when you afford it, where consolidation companies usually allow you to do so without penalty. Before we get into answering the question how to consolidate student loans in it’s extent, it should be known that you can actually consolidate just one loan and still enjoy the benefits of consolidation.

Another aspect of answering your question of how to consolidate student loans is the part that for the most part, federal student loans and private student loans need to be consolidated seprately. These consolidation loans are granted in the form of both secured and unsecured loans, and once they are given your credit score can actually go up as all of your student loans will be paid off by the consolidation company, which will show up as mutliple loans paid off, bumping up your score.

All in all the act of student loan consolidation can provide you with immense value, especially for those nearing student loan default as it can keep you from having to default on your student loans because you cannot afford the monntly payment. If you are in this situation then a lower monthly payment that is offered through consolidation companies can help you avoid many negative things.

Private Student Loan Consolidation

Now when it comes to how do you consolidate student loans, well there are two distinct ways, those being either through a private consolidator for those with private loans like through Sallie Mae or Next Student who are both some of the largest private student loan consolidation providers. To get started with the process of private student loan consolidation, the best thing to do is contact providers directly who can get you going on the process of consolidating your student loans.

Federal Student Loan Consolidation

Or for federal student loan debt, one would use the Federal Student Loan Consolidation Program which is provided by the Higher Education Act (HEA) where they provide student loan consolidation services for federal loans. If you are ready to utilize federal student loan consolidation then you should visist the Direct Consolidation Loans site which can provide you with value information, answering any more of your how to consolidate student loans questions and lend a helping hand to consolidating your student loans.

Drawbacks of Student Loan Consolidation

Now that you known the major aspects of what student loan consolidation entails, there are a few speed bumps that you may encounter, the keyword being “may” because there is a good chance that the process will go smooth. But for examples purposes, below are some of the negative aspects:

  • Consolidating your student loans can actually make you ineligible for certain student loan forgiveness and relief programs.
  • Certain loans are often not excepted when it comes to federal loans as well as loans that were obtained before a certain date.


How To Get A Student Loan – Both Federal & Private

February 26, 2012

How To Get A Student Loan

Get A Student Loan

When it comes to answering the your how to get a student loan question, the best answer we can give you is to fill out a Federal Application for Federal Student Aid (FAFSA) which needs to be done for the year you are looking to obtain financial aid through student loans. The FAFSA is purely federal student aid which if provides federal loans like the Perkins and Stafford which are both needs based loans, meaning eligibility is based off of your need for financial aid and not based off of credit score at all.

There is also a loan program called the PLUS loans which are loans that are made available for parents whom are looking to take out a loan in their name to provide funding for their children’s college education, which these are credit based. This how to get a student loan resource is so valuable becuase of the fact that federal student loans offers it’s eligible applicants the best interest rates as well as the best repayment options, and filling out the FAFSA just happens to pose the opportunity of qualifying for federal grant money, which is money you never have to worry about paying back.

Note that the FAFSA can be filled out as soon as January 1st for the year you are looking to obtain financial aid.

How To Get A Student Loan That Is Private

When it comes to how to get student loans that are from private lenders, there are a couple of options which include:

  • Banks – Which you can go through the bank that you currently hold an account with, or you can go with a different bank, which some great private student loan lenders are; Citi Bank, Bank of America, Wachovia, Chase among others.
  • Specific Providers – These include organizations like Sallie Mae and Access Student Loans among others.
  • Credit Unions – When it comes to how to get a student loan through credit unions, you must become a member of a credited union which is done by applying either online or on location. Keep this resource in mind if you need to apply for federal student loans because credit union loans offer private loans but with interest rates that are comparable to the likes of federal student loans, offering you a great alternative.

Private student loans can provide great benefit, but should be used after your grant and federal loan money has not sufficed your entire financial need when it comes to the amount you need to pay for your education and other related costs. Getting student loans that are private comes with negative aspects like higher interest rates and less lenient repayment options, as well as are always credited based so the best thing to do if you need to apply for a private loan is to obtain a worth co-signer as this will both increase your odds of becoming eligible for a private loan as well as provide you with a lower interest rate.

When it comes to how to get a student loan these are the methods that you can use to get loans to pay for your tuition, but always remember to apply for grant programs, both federal and private and as many as you can because you can pay for a big part of your education with grants which unlike loans, you will not be in debt for whatever amount you are granted.

How To Pay Off Student Loans FAST – 9 Methods

August 26, 2011

How To Pay Off Student Loans Fast

If you are looking for how to pay off student loans methods that will enable you to get your debt wiped clean way faster than normal, we’ve go you covered. Below will be 7 different methods that all show you how to pay off student loans faster than you every may have thought possible.

Pay Off Student Loans

How To Pay Off Student Loans – 7 ways

  1. The first way that we will suggest when it  comes to how to pay off student loans fast is to keep living like you are in college. Budget shopping has been done by all of us in college and is a great way to save money, a lot more than when you were in college because now you have a monthly check coming in from you job, allowing you to live like a student but earn career income.
  2. With many loan options out there, there the grace period as you might know, which allows you a 6 month timeframe where you don’t have to pay. Do not wait until the 6 month timeframe is up. Right when you are done with college, start paying your student loan payments from day one.
  3. If you can, pay more than the minimum. Student loan debt programs, or any debt programs for that matter, want to keep you around for as long as they can by giving low monthly payments, but you end up paying a lot more in interest. If you can double up, or even add an extra 30 dollars each month, you will be able to pay off student loans faster. While were on the subject, you should try to pick the shortest repayment plan available.
  4. Another remedy to your how to pay off student loans quicker is to negotiate your the offer you get on your first job. Also, you should wait it out, if possible and not hop on the first job you get, try to find one that pays a little more, say 1500 more, so then you can pay off your debt with that extra 1500.
  5. Another way when it comes to the subject of how to pay off student loans a lot faster is to start saving for retirement. I know it may sound strange but saving for retirement while you have student debt does more than just help set you up financially when you hang it up, it actually provides you tax benefits. If you enroll in what is called a Registered Retirement Savings Plan (RRSP) you will pay less tax. Also, you can always decide to take out what you saved in retirement as one large last payment to finish off your debt completely. So this method can be very powerful.
  6. Another way when askign how to pay off student loans faster is: Do not let instant gratification hinder your from paying off your debt. In other try to avoid the “shiny object” plague until after your student debt is paid off. Although you have to treat yourself sometimes. kind of like a diet eating 6 days health and eating up on the 7th day, but try to stay as disciplined as you can.
  7. There is also the option of loan forgiveness programs where you can get a big part of your debt wiped out by working jobs that allow this option through your loan lender. The best thing to do for this option is to ask about it through your loan lender.
  8. You can also consider conolidating your loans as this has proved to be a money saver.
  9. Another way when it comes to how to pay off student loans faster methods is to use a student repayment calculator which will really put it into perspective on how long it will take out at the rate you are paying now, as well as showing your how much time and money you can save by paying a higher payment.

How To Pay off Student Loans – Conclusion

Now you know some of the best methods when it comes to your question how to pay off student loans fast. These ways have enabled many students to pay off their student loans in a one figure time frame instead of two figure time frame. Hopefully this methods will do the same for you!