Eliminating Debt Early With Private Student Loan Consolidation

Eliminating Debt Early With Private Student Loan Consolidation

Many recent graduates are finding it harder and harder to stretch new paychecks. Graduation may be a milestone in itself, but alongside a college diploma are the endless monthly bills. Living on one’s own has never been easy. Private student loan consolidation is often used to lower monthly payments and improve credit ratings.

Accumulating Debts

Often, the accumulation of other debts is to blame for such a sorry state of affairs after graduation. Take the case of 25-year-old Tamika Gambrel, who has a ,000 a year job but still finds it difficult to make ends meet. She has to pay 0 for the apartment, 0 for the car note and a hefty ,000 credit card debt that came from her college days. She speaks frankly about her debts:

”After four years, I walked away owing only ,000 in loans. Considering that tuition and room and board alone at Colby was ,000 a year, I think I did alright.”

Not everyone could put up such a brave face in the face of debt. Some just decide to file for bankruptcy, instead of getting a private student loan consolidation.

Fees Not Letting Up

According to the College Board:

”The cost of attending a public, four-year college or university in the 2007-08 school year–including tuition, fees, and room and board–was ,796, up 35% over the past five years; for private schools, the cost was a hefty ,367.”

These figures are by no means fixed. As we all know, tuition fees and other related fees increase and decrease depending on inflation and other economic forces. But people still want to borrow money for their college days, because indeed it’s a chance to get a better shot at life. Private student loan consolidation becomes a chance to get better rates in the end.

Know Your Debts First

To “retire” your student loans faster, you have to know your loans. Log on to www.nslds.ed.gov (National Student Loan System) to read about the specific details of different student loans. Check the status of your loans, as well as the variable interest rates and the principal. Make sure too that you obtain the required personal identification password (PIN). This can be obtained from the Department of Education. Log on to www.pin.ed.gov for more details.

Another important thing to remember is that federal loans and private loans are different. Federal loans have caps on their interest rates while private loans do not. Often, private loans are costlier. And another thing: federal loans and private loans cannot be consolidated by one large loan. They must be consolidated separately. And again, federally subsidized loans have the government backing it up (Uncle Sam pays the interest rates while you’re in school).

Make sure that you only go to attractive private student loan consolidation deals. The case of Gambrel was actually good: she had been able to get consolidation at a 2.87% interest rate. Gambrel acknowledges: “I got very lucky. At the time I graduated, jobs weren’t plentiful, but student loan consolidation programs were very, very attractive.” This just goes to show that careful financial planning can lead to beneficial results.

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Options With Student Loan Consolidations

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.

About the Author:

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!

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



No fees

No cost to apply

No credit checks

No co-signers required

No prepayment penalties

Fixed interest rate

Repayment terms up to 30 years

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.



About the Author:

Jeff Mictabor is an enthusiast on the topic of student loan issues in the news. He has been writing for the past 10 years for a variety of education publications. He now offers his writing services on a freelance basis.



Is Student Loan Consolidation on Private Loans Really An Option?

Private student loans are credit-based and have more attractive repayment terms as well as interest rates. It can really help in saving money every month unlike the Federal student loans. Private student loan consolidation is simply the process of refinancing and combining private student loans into a single debt only. It may result to a lower monthly loan payments thus will also lessen your worries about your multiple loans.

The very main essence of a private student loan consolidation is to lessen the monthly payment of students who have multiple loans. By getting quotes from various lenders, a student can have knowledge about how to get the best deal with all the prevailing market rates present nowadays. Furthermore, private student loan consolidation can result to an extended loan payment. This gives the student borrowers enough time to pay their loans with fewer burdens. These beneficial advantages offered by the private student loan consolidation are not possible if students have several loans to handle.

There are various private student loan consolidation companies which offer more benefits. One of these is the interest rate reduction which can result to lower loan monthly payments to think of. The options for the loan repayment procedures depend upon the qualifications being required by a particular lending company. Thus, it is also the work of the lending company to choose the best private student loan consolidation program suitable for a particular student loaner.

Indeed, private student loan consolidation brings various benefits. However, one should still be aware of some situations like the drawbacks of having a private student loan consolidated.

Student loans are indeed a very big help for students who are deeply in need of some financial aids. However, all students who have decided to avail of a particular student loan should bear in mind the responsibility in repaying the borrowed amount of money. In fact, there are so many ways on how to pay off student loans.

The very first thing to do is to develop a plan on how to pay off student loans. Second is to look for a summer jobs or internships to be able to save a lot of money and not waste your valuable time. Part-time jobs will also do to help pay a loan.

Also, take into consideration to consolidate current student loans to have lower interest rates. Furthermore, one should perform volunteer works like teaching, medical works or even military works to reduce at least somehow a debt. It would also be good to apply for some grants and scholarships while in school to lessen the burden.

And lastly, take good care of the credits. Late payments should be avoided to have a good credit score.

It is important to pay off private student loans as quickly as possible. Sometimes, early paying off of the loan will lessen the burden along with a particular student loan. To make paying off easy, one can start paying off first the non-subsidized loans for it has an obligatory interest. Also, if one has several loans already, paying off first the smallest loan would be much better.

Just always remember to always do the best in paying off student loans. Be a responsible student loaner!

Failing to pay off student loans can stick with you for decades. You can’t go bankrupt on student loans so don’t count on that as saving you down the road!



About the Author:

The Student Loan Guru brings you this timely article on Private Student Loans. You can find more information on Student Loans and College resources at his student loan blog.



Private Student Loan Consolidation Tips

With the rising cost of education today, many students come out of college with at least five kinds of student loans trailing down behind them. If you are one of those students who left college with multiple student loans in tow, you should consider private student loan consolidation. Note that it is not easy to monitor all the due dates, payment amounts and interest rates for all your five or more loans. The worst part of it is that if you get confused about payment dates and you accidentally missed you due date, the bank or financial institution may charge you for late payments. Late payment charges can be quite annoying and expensive so if you don’t want to waste your money, you have to consolidate your student loans into one account.

Private student loan consolidation does not just help you track down your loan payment due date, it also help you save money on interest. A lot of banks and financial institutions around the country offer lower interest rates and longer payment periods for private student loan consolidation. What actually happens in private student loan consolidations is that the back or the financial institution pays up all your existing student loans and create a new loan account for you. Since private student loan consolidation technically results to a fresh loan, most banks and financial institutions are open for negotiations when it comes to interest rates.

Will Private Student Loan Consolidation Decrease The Amount Of My Debts?

Private student loan consolidation is not exactly your way out of a financial mess. Just because you opt for private student loan consolidation does not mean that you will no longer have the same amount of debts than before. Note that in private student loan consolidation, you only transfer your loan balances to one account so you still end up with more or less the same amount of debts than before. In fact, you might even end up with a slightly higher amount of loan considering the fact that banks and financial institutions often change loan processing fees and other service charges on private student loan consolidation. Is that bad? If you take a look at the increased figures of your student loans when you do private student loan consolidation, it does look bad. But if you take into consideration the long term effects of private student loan consolidation like lower interest rates and longer payment periods, things aren’t exactly that bad at all.

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