Preparing for the Future With Student Loan Consolidation

Student loan debt from multiple lenders is a burden that many students graduate with. The good news is that student loan consolidation is available for both federal and private student loan programs. It is not a good idea, however, to consolidate student loan debt from both federal and private lenders; they should be consolidated separately.

Federal student loan consolidation has some benefits over private student loan consolidation for a few reasons. There are three main reasons for federal loan consolidation, which are to lock in an interest rate, simplify finances and lower monthly payments. After consolidating student loan accounts, borrowers only need to make a single student loan payment each month. It is much easier to remember to make payments on time without having to balance multiple payments.

Borrowers can also spread out federal student loan repayment over as much as 30 years, and the interest rate on these student loans is generally very low. Federal student loan consolidation results in a single fixed interest rate guaranteed for the life of the loan, so there’s no need to worry about their rate fluctuating with the market. The interest rate on federal loan consolidation is determined by the weighted rates of the student loans that are being consolidated. The government has set a rate cap of 8.25 percent on federal student loan consolidation.

All federal student loans are eligible for consolidation, but the best interest rates are available while they are in their grace periods rather than in repayment. There is no minimum balance, employment history or cosigner needed for to qualify for federal student loan consolidation. Applying for federal loan consolidation is free, and borrowers do not have to go through credit checks.

It takes one or two months for a federal student loan consolidation to go into effect, at which time student loan repayment will begin. There are four student loan repayment options, which are standard, graduated, income-contingent and extended. Graduated repayment is where payments increase gradually, income-contingent repayment is where payments are based on annual income, and extended repayment is where payments stretch over a longer period. There is also no prepayment penalty on federal loan consolidation.

It is a bit more different to consolidate private student loan debt, but the main benefit is the same. It is much easier to make a single student loan payment each month than to pay off several different loans separately. It’s also possible to obtain a fixed interest rate and improve one’s credit score by having fewer accounts open. Private loan consolidation is a bit more difficult to obtain than federal loan consolidation, though. In order to be eligible, one must be a U.S. citizen, pass a credit check and often pay a small application fee.

The terms and conditions vary much more with private student loan consolidation than with federal student loan consolidation. There are several things that everyone interested in private loan consolidation should consider, though, including forfeiture of the individual benefits of the separate loan accounts. Some lenders may also extend a variable interest rate rather than a fixed one. Borrowers can also only consolidate private student loan debt once, and can never “un-consolidate” their student loans.

When students and graduates do their homework, they can make the most of their student loan debt through a consolidation loan. There are several differences between federal and private student loans, including the ways they are consolidated. Any student who is nearing graduation or who has recently graduated should definitely look into their student loan consolidation options; it may be the best way to ensure a solid financial future.

For more resources about Loan consolidation or even about School loan consolidation and especially about Student loan please review these links.

By : Groshan Fabiola

Student Debt Consolidation Loans: Taking Care of Numerous Debts While you Study

Student debt consolidation loans help you to consolidate all the debts availed for the purpose of higher studies into one with comparatively low interest rate. This way it becomes easier to pay for you and that too at low interest rate. Student debt consolidation loans are basically of two types, secured and unsecured.

STUDENT DEBT CONSOLIDATION LOANS: FEATURES

Student debt consolidation loans help you to consolidate all the debts availed for the purpose of higher studies into one with comparatively low interest rate. This way it becomes easier to pay for you and that too at low interest rate. Student debt consolidation loans are basically of two types, secured and unsecured. To avail secured student debt consolidation loans you’ll have to place collateral against the loans amount. This can be any of your personal properties like car, home etc. On the other hand no such security is needed to avail an unsecured student debt consolidation loan. No credit check is required to avail student debt consolidation loans. It means students having bad credit history due to arrears, defaults, CCJ, IVA etc can also avail the benefits of student debt consolidation loans, but with slightly higher interest rate compared to good creditors. Student debt consolidation loans carry low interest because it’s meant for students. The interest rate may vary depending upon the type of loan availed by student and the credit history of the student. Unsecured student debt consolidation loans carry slightly higher interest rate than secured one, this is because lenders advance loans without any security.

STUDENT DEBT CONSOLIDATION LOANS: ADVANTAGES

Student debt consolidation loans are very helpful for students having multiple debts. It is very difficult to manage many debts all with high interest rates. With the help of student debt consolidation loans you can merge all your previous debts into one manageable debt with low interest rate. This way you can easily repay the loan installments. Interest rates for student debt consolidation loans are further reduced if you make regular payments of the loan installments. No credit check is required to avail student debt consolidation loans; students suffering from adverse credit history can also avail the benefits of student debt consolidation loans. You can choose a flexible repayment option depending upon your needs to repay the loan amount.

STUDENT DEBT CONSOLIDATION LOANS: APPLICATION

Visiting lenders to avail student debt consolidation loan personally can be very time taking. For faster approval and quicker transaction you should apply online. Online application has many benefits. You don’t have to meet lenders personally; it consumes less time, requires less paperwork and is approved in short period of time. You can also search for lenders offering student debt consolidation loans at reasonable interest rate. With the help of Internet you can download the loan quotes from various banks, financial institutions and lending firms and compare between them to choose the best one that suits your pocket. To apply online you just have to fill up an online application form. Lenders will then get back to you with their offers.

By : Jennifer Morva

Student Loan Consolidation: Make your Student Loan Repayment Easier to Manage

Are you a May graduate with student loans looking at six-month grace periods that are ending sometime this month? If you’ve got multiple student loans going out of grace and into repayment, you’ll soon be faced with trying to juggle multiple bills, multiple due dates, and multiple monthly payments.

But you could eliminate the hassle of multiple student loan payments and help make your student loan repayment easier to manage by consolidating your eligible federal student loans with a Federal Consolidation Loan from NextStudent, a leading Phoenix-based education funding company.
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What’s Federal Student Loan Consolidation?

Student loan consolidation allows you to combine your eligible federal student loans into one single consolidated loan with one lender, one monthly bill, and one convenient monthly payment. To be eligible to consolidate your student loans, you can’t currently be enrolled in school more than half time. The student loans you’re looking to consolidate must be in repayment, in a grace period, or in an authorized deferment or forbearance period.
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Consolidating Federal Parent PLUS Loans

Parents with federal parent loans are also eligible to consolidate. Parents can consolidate the PLUS loans they took out to help you pay for school as soon as the PLUS loans have been fully disbursed and have entered repayment, even if you’re still in school full time. Although your parents can consolidate their PLUS loans, you won’t be able to consolidate your own student loans with your parents’ PLUS loans.
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Take Advantage of All the Benefits of Federal Student Loan Consolidation

1. No fees


2. No cost to apply


3. No credit checks


4. No co-signers required


5. No prepayment penalties


6. Fixed interest rate


7. Repayment terms up to 30 years


8. One single monthly payment for all your eligible federal student loans

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There are never any charges or credit checks to apply for a Federal Consolidation Loan with NextStudent. And there are no prepayment penalties, so you’ll never be charged extra fees just for paying more than the minimum each month or for paying off your student loan consolidation early.

Student loan consolidation lets you lock in a monthly payment with a fixed interest rate. You may also be able to cut your monthly student loan payments by as much as 50 percent when you consolidate your federal student loans with NextStudent. A federal student loan consolidation could extend the repayment term on your student loans by up to 20 years; by extending your payments over a longer repayment term, a consolidation loan could lower the amount you have to pay each month.
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Private Student Loan Consolidation

If you have private student loans in addition to (or instead of) federal student loans, you won’t be able to consolidate your private student loans under the federal student loan consolidation program. But you may be eligible to consolidate your private loans separately with a NextStudent Private Consolidation Loan, which offers the same convenience of a single consolidated loan for your private student loans.
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NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.

By : Jeff Mictabor