College Student Loan Consolidation - The Way to Help Yourself Manage the Loans!
By Craig Statlish
Are you nearing graduation and you know that you will have to begin paying on your student loans in the near future? Do you want to know all the options you have to help you repay these loans and build good credit in the process? There are many things you can do including college student loan consolidation to help with repayment. Here are the options you need to know about.
First, with college student loan consolidation you can put all of your loans into one payment each month. This makes it much easier to manage and it will make it so that you only have one payment to deal with on a monthly basis. However, you need to be careful and make sure you have all the same options with the new loan as you do now and you need to make sure you get a good rate for your college student loan consolidation.
Second, you also have another option to help out if you cannot afford to start paying on your student loans. This is called deferment. You get 6 months after graduation or you quit going to school before a payment is ever due and if you still cannot afford to pay your loan payments, then you can extend this period by up to 2 years with a deferment. This does not hurt your credit and will allow you to figure out how you are going to pay on your loans.
Last, you also have the option to use a forbearance at any time during the loan payback. This comes in periods of 6 months at a time and is used mainly for financial hardship or sudden unemployment. This allows you to pause your payments and take 6 months at a time to find a new job or get things sorted out before you start paying on your loans again. Make sure this is included when you do your consolidation.
search
Custom Search
Undergraduate Student Loans
Undergraduate Student Loans - What They Don't Tell You About Repayment!
By Chad Wistick Platinum Quality Author
Very few students that have undergraduate student loans have any idea what they should expect when they get to the point that they have to start making payments. This is the very strange part about the education process. You go get a degree that is in a specific field, but they cannot take the time to teach you about your student loan repayment options. Here are some tips to help you out.
First, you have 6 months after you graduate or stop going to school before they will start sending you bills with payments due. This is supposed to give you time to find a job or decide to go on for more schooling. If you go on for more schooling your loans will go into an educational deferment, which keeps you from having to pay on them without hurting your credit. If you do not, then you have to pay or use one of the following options.
Second, with undergraduate student loans you have what is known as a regular deferment that you can use in 6 month increments for up to 2 full years. This is just you adding more time on the end of that original 6 months. You will not have to pay any money on your loans when you use deferment until the period is up. Then, you will have to start paying on your loans. This gives you time to figure out what to do about these undergraduate student loans.
Last, the other option, which you can use at any time with your loans is to go into forbearance. This is a way of protecting your credit rating while you are going through a financial hardship. This could be a period of unemployment or another time in your life when your money is just not enough to pay on your loans. Forbearance works for 6 months at a time and there is not a limit to how many times you can use it
By Chad Wistick Platinum Quality Author
Very few students that have undergraduate student loans have any idea what they should expect when they get to the point that they have to start making payments. This is the very strange part about the education process. You go get a degree that is in a specific field, but they cannot take the time to teach you about your student loan repayment options. Here are some tips to help you out.
First, you have 6 months after you graduate or stop going to school before they will start sending you bills with payments due. This is supposed to give you time to find a job or decide to go on for more schooling. If you go on for more schooling your loans will go into an educational deferment, which keeps you from having to pay on them without hurting your credit. If you do not, then you have to pay or use one of the following options.
Second, with undergraduate student loans you have what is known as a regular deferment that you can use in 6 month increments for up to 2 full years. This is just you adding more time on the end of that original 6 months. You will not have to pay any money on your loans when you use deferment until the period is up. Then, you will have to start paying on your loans. This gives you time to figure out what to do about these undergraduate student loans.
Last, the other option, which you can use at any time with your loans is to go into forbearance. This is a way of protecting your credit rating while you are going through a financial hardship. This could be a period of unemployment or another time in your life when your money is just not enough to pay on your loans. Forbearance works for 6 months at a time and there is not a limit to how many times you can use it
How to Consolidate Private Student Loans?
How to Consolidate Private Student Loans?
By Bruce Victor Platinum Quality Author
The private student loans or the alternative student loans are those loans which students avail of over and above the financial aid that they get. These loans are used to pay off living expenses or even the expenses for the books or computers.
Since these loans are not sponsored by the government and are given by the banks the rates are generally very much higher than the normal rates. Apart form the fact that students have low credit score and hence the loan rates are higher.
If you have two or more of these loans then it is better to consolidate the private student loans. The best option is to talk to your bank and suggest them that since you are unable to service each loan separately it is better to consolidate the private student loans into one single EMI on a monthly basis.
Also always never consolidate the federal loans and the private loans. The federal loan rates are much lower and hence it is better to consolidate them separately. Talk to the banks for consolidation and if they do not agree then there are specialized loan consolidation agencies that can do the consolidation.
Always go for a longer tenure to lower your monthly EMI. Also get a co-signer or collateral so that the EMI gets lowered. Consolidation will help you manage the finances better and it will also help to make sure that you have enough money in the bank for any exigencies. Make sure that you approach the banks that originally lent you the loan first.
By Bruce Victor Platinum Quality Author
The private student loans or the alternative student loans are those loans which students avail of over and above the financial aid that they get. These loans are used to pay off living expenses or even the expenses for the books or computers.
Since these loans are not sponsored by the government and are given by the banks the rates are generally very much higher than the normal rates. Apart form the fact that students have low credit score and hence the loan rates are higher.
If you have two or more of these loans then it is better to consolidate the private student loans. The best option is to talk to your bank and suggest them that since you are unable to service each loan separately it is better to consolidate the private student loans into one single EMI on a monthly basis.
Also always never consolidate the federal loans and the private loans. The federal loan rates are much lower and hence it is better to consolidate them separately. Talk to the banks for consolidation and if they do not agree then there are specialized loan consolidation agencies that can do the consolidation.
Always go for a longer tenure to lower your monthly EMI. Also get a co-signer or collateral so that the EMI gets lowered. Consolidation will help you manage the finances better and it will also help to make sure that you have enough money in the bank for any exigencies. Make sure that you approach the banks that originally lent you the loan first.
Conditions That Apply For Banks Offering Private Student Loans
Conditions That Apply For Banks Offering Private Student Loans
By Bruce Victor Platinum Quality Author
Private student loans are the ones that are given to the students who have exhausted all their options for getting other loans.
These loans are availed by students because of several reasons and the main reason being that you have to pay more than the amount of loan that was given to your by Stafford Loans or the Pell Grants.
That extra money that you need is called as the private student loan or the alternative loans. A lot of banks offer this loan. The way they pay is also very critical. Some pay directly to the student and some require the school certification.
The amount that the bank pays is based on the fact that you have other loans availed. The calculation of the private student loan is the net amount arrived at after deduction the other aids from the total cost.
Some banks apply the condition that you need to show that you have done reasonable efforts in obtaining aids and grants. In a lot of cases banks would want to have the cosigner or collateral. The private student loans are more expensive than the other student loans and they depend a lot on your credit score. Now as a student you may not have a good score and hence banks will generally want a co-signer.
Another thing is that a lot of these banks will give you loans only for certain type of educational courses. Please make sure that you check as to what courses are deemed as approved courses by the banks.
By Bruce Victor Platinum Quality Author
Private student loans are the ones that are given to the students who have exhausted all their options for getting other loans.
These loans are availed by students because of several reasons and the main reason being that you have to pay more than the amount of loan that was given to your by Stafford Loans or the Pell Grants.
That extra money that you need is called as the private student loan or the alternative loans. A lot of banks offer this loan. The way they pay is also very critical. Some pay directly to the student and some require the school certification.
The amount that the bank pays is based on the fact that you have other loans availed. The calculation of the private student loan is the net amount arrived at after deduction the other aids from the total cost.
Some banks apply the condition that you need to show that you have done reasonable efforts in obtaining aids and grants. In a lot of cases banks would want to have the cosigner or collateral. The private student loans are more expensive than the other student loans and they depend a lot on your credit score. Now as a student you may not have a good score and hence banks will generally want a co-signer.
Another thing is that a lot of these banks will give you loans only for certain type of educational courses. Please make sure that you check as to what courses are deemed as approved courses by the banks.
7 Simple Ways to Repay Student Loans
7 Simple Ways to Repay Student Loans
By Miranda Jones
Today most of the students take loans to fulfill their academic aspirations. But very often they face severe debt problems. It has been found that students owe at least an amount of £10,000. So if you are thinking to avoid all your debts, here are some tips:
1. There are many universities that offer funds to students who cannot afford the heavy expenses. You can avail various scholarships. It can be of a great advantage as it covers all your education expenses.
2. There are many universities who even offer debt advice services. You can browse some of the useful sheets of the National Union of Students for any kind of financial support.
3. Regulating your credit score is very essential. Always go for a student loan instead of borrowing through banks. This is invariably a cheap method. In case you are opting for banks, check their rates. A cheap overdraft facility can help you a lot. Certain banks even have graduate banking facilities.
4. The best way to defeat your debts is opting for part-time work. Now students can easily work since student grants have been abolished. You can choose a job according to your requirements. Always grab a job that gives you flexibility. Many students resort to summer jobs or work during holidays. The website of The Recruitment and Employment Confederation has a wide selection of employment consultancies.
5. In the recent times, students have a lot of work rights. The minimum wage rate is set at £ 3.70 for anyone who is 18 years. For more queries, you can consult The National Minimum Wage hotline at 0845 6000 678. So you can happily work and repay all your loans. The basic mantra is to earn while you learn!
6. Students who engage in jobs during holidays should ask their employer to complete P38(S). This means that there will no deductions from their salary. However, if you have already worked, you should have the form P45 for your new employer. For more information on other tax regulations for students, you can refer to leaflet IR60.
7. Apart from these methods, consolidating debts is a great way of tackling debt problems. You just require to consult a lending institution that will carve you a way out of debts. Merging all your debts into a single one simplifies the task of debt management. Students will make only one single student debt consolidation payment. This reduces the rate of interest and is best applied for credit card debt consolidation.
These are some of the most important student loan management tips. But these tips will definitely help you to manage your student loans in an organized way.
Miranda Jones is a freelance writer and publishes debt advices at Debt And Debtor. For more debt advices she recommends you to visit YesDebtFree.co.uk
By Miranda Jones
Today most of the students take loans to fulfill their academic aspirations. But very often they face severe debt problems. It has been found that students owe at least an amount of £10,000. So if you are thinking to avoid all your debts, here are some tips:
1. There are many universities that offer funds to students who cannot afford the heavy expenses. You can avail various scholarships. It can be of a great advantage as it covers all your education expenses.
2. There are many universities who even offer debt advice services. You can browse some of the useful sheets of the National Union of Students for any kind of financial support.
3. Regulating your credit score is very essential. Always go for a student loan instead of borrowing through banks. This is invariably a cheap method. In case you are opting for banks, check their rates. A cheap overdraft facility can help you a lot. Certain banks even have graduate banking facilities.
4. The best way to defeat your debts is opting for part-time work. Now students can easily work since student grants have been abolished. You can choose a job according to your requirements. Always grab a job that gives you flexibility. Many students resort to summer jobs or work during holidays. The website of The Recruitment and Employment Confederation has a wide selection of employment consultancies.
5. In the recent times, students have a lot of work rights. The minimum wage rate is set at £ 3.70 for anyone who is 18 years. For more queries, you can consult The National Minimum Wage hotline at 0845 6000 678. So you can happily work and repay all your loans. The basic mantra is to earn while you learn!
6. Students who engage in jobs during holidays should ask their employer to complete P38(S). This means that there will no deductions from their salary. However, if you have already worked, you should have the form P45 for your new employer. For more information on other tax regulations for students, you can refer to leaflet IR60.
7. Apart from these methods, consolidating debts is a great way of tackling debt problems. You just require to consult a lending institution that will carve you a way out of debts. Merging all your debts into a single one simplifies the task of debt management. Students will make only one single student debt consolidation payment. This reduces the rate of interest and is best applied for credit card debt consolidation.
These are some of the most important student loan management tips. But these tips will definitely help you to manage your student loans in an organized way.
Miranda Jones is a freelance writer and publishes debt advices at Debt And Debtor. For more debt advices she recommends you to visit YesDebtFree.co.uk
Top 4 Advantages of Student Consolidation Loan
Top 4 Advantages of Student Consolidation Loan
By Lana Leicester Platinum Quality Author
Student life is the most important period in anyone's life and it is the period when all the students would need to equip themselves with the best knowledge rendering training and practices. But, many people usually see that the expenditure incurred is very high. So, in order to meet up with all these expenses, the government usually provides aid in the form of Student Consolidation Loan. But, there are several conditions that are needed to be fulfilled, to avail the student consolidation loans. The top 4 advantages that you derive out of student loans are listed below.
1. The payments get reduced by up to 60%.
2. There is no penalty for pre-closure of loans.
3. No credit checks will be performed against you, in order to grant the loan.
4. The interest rates are considerably very low.
There are many different loans and a different procedure is required to avail any of those loans. And, the best way to get familiar with them is to take a sneak peek into the specific sites of the vendors/organizations offering the respective student consolidation loans.
They're sure to answer all your questions. To be eligible to obtain a government student loan, you should first get registered with the FAFSA. You need to fill in an application of the Free Application of the Federal Student Aid, more commonly known as the FAFSA and submit it to the concerned authorities before the deadline. Even if you wish to change any of the details, you can do so before the deadline. The FAFSA is need based and not everyone will get qualified. There are many ways to fill the FAFSA form and the best way to do so is to do it online.
By Lana Leicester Platinum Quality Author
Student life is the most important period in anyone's life and it is the period when all the students would need to equip themselves with the best knowledge rendering training and practices. But, many people usually see that the expenditure incurred is very high. So, in order to meet up with all these expenses, the government usually provides aid in the form of Student Consolidation Loan. But, there are several conditions that are needed to be fulfilled, to avail the student consolidation loans. The top 4 advantages that you derive out of student loans are listed below.
1. The payments get reduced by up to 60%.
2. There is no penalty for pre-closure of loans.
3. No credit checks will be performed against you, in order to grant the loan.
4. The interest rates are considerably very low.
There are many different loans and a different procedure is required to avail any of those loans. And, the best way to get familiar with them is to take a sneak peek into the specific sites of the vendors/organizations offering the respective student consolidation loans.
They're sure to answer all your questions. To be eligible to obtain a government student loan, you should first get registered with the FAFSA. You need to fill in an application of the Free Application of the Federal Student Aid, more commonly known as the FAFSA and submit it to the concerned authorities before the deadline. Even if you wish to change any of the details, you can do so before the deadline. The FAFSA is need based and not everyone will get qualified. There are many ways to fill the FAFSA form and the best way to do so is to do it online.
Student Loan Glossary
Confused with student loan jargon on your financial aid form? Use our extensive student loan resources to help you. Find the comprehensive student loan glossary below to aid in all your student loan needs.
Accrued interest: Interest that builds on a loan's unpaid principal balance.
Award Letter: Notification by a financial aid office to a student informing him or her of the amount of financial aid and the financial aid programs that he has been offered.
Consolidation: The process of combining a student's federal student loans into one loan, resulting in a lower monthly payment and a fixed interest rate.
Cost of Attendance (COA): A financial aid office's estimate of the total amount that a student will have to pay to attend that university.
Default: Failure to repay a loan in conformity with the terms of the promissory note.
Deferment: A temporary period during which a borrower can, under certain conditions, postpone payments on his loan.
Delinquency: Failure to make loan payments by the due date.
Disbursement: Issuance of loan moneys to the student or parent borrower.
Discharge: The release of a borrower from the duty to pay back his or her loan.
Entrance Counseling: An informational session that first time borrowers of federal student loans must attend before loan proceeds can be paid.
Exit Counseling: An informational session that borrowers of federal loans must complete around graduation time.
Expected Family Contribution (EFC): The amount that a borrower and his family can be expected to allocate to academic expenses during the school year.
Federal Work Study: A federally-financed program that allows schools to set up campus-based employment programs for financial aid borrowers.
Forbearance: Temporary deferment or decrease of education loan payments, on the basis of financial hardship during the repayment term.
Forgiveness: Cancellation by the federal government of all or a portion of a student's loan(s) under certain circumstances.
Free Application for Federal Student Aid (FAFSA): The standard application form for all federal aid programs.
Graduate PLUS Loan: A federally-backed loan program under which graduate students can borrow up to the cost of education less other aid.
Grant: A form of financial aid that is based on a borrower's financial need and that the student does not have to repay.
Guarantee Fee: A loan fee that a student pays to a lender.
Grace period: A 6-month period before the first Direct Subsidized or Unsubsidized loan payment is due.
Master Promissory Note (MPN): The binding legal document that a borrower signs when issued a student loan.
Origination Fee: A fee that a student pays to the lender for loan origination.
Parent PLUS Loan: A loan allowing creditworthy parents of undergraduate students to obtain a federally-backed loan to pay up to the total cost of education less any other aid awarded.
Perkins Loan: A federally-guaranteed and need-based student loan that is available through the university and that carries a fixed 5% interest rate.
Private Student Loan (or Alternative Student Loan): Also known as an Alternative Student Loan, this loan is issued to borrowers by finance companies or banks and is not guaranteed by a government agency.
Scholarships: Financial aid that a student does not have to repay.
Stafford Loan: A need-based, federally-backed loan that allows students to receive a certain amount of funds from lenders to cover tuition costs.
Subsidized Loan: The federal government pays the interest that accumulates on a subsidized Stafford loan while the student is enrolled at least half-time at the university.
Unsubsidized Loan: The borrower is required to pay the interest that accumulates on an unsubsidized loan, even while he or she is enrolled in college.
Accrued interest: Interest that builds on a loan's unpaid principal balance.
Award Letter: Notification by a financial aid office to a student informing him or her of the amount of financial aid and the financial aid programs that he has been offered.
Consolidation: The process of combining a student's federal student loans into one loan, resulting in a lower monthly payment and a fixed interest rate.
Cost of Attendance (COA): A financial aid office's estimate of the total amount that a student will have to pay to attend that university.
Default: Failure to repay a loan in conformity with the terms of the promissory note.
Deferment: A temporary period during which a borrower can, under certain conditions, postpone payments on his loan.
Delinquency: Failure to make loan payments by the due date.
Disbursement: Issuance of loan moneys to the student or parent borrower.
Discharge: The release of a borrower from the duty to pay back his or her loan.
Entrance Counseling: An informational session that first time borrowers of federal student loans must attend before loan proceeds can be paid.
Exit Counseling: An informational session that borrowers of federal loans must complete around graduation time.
Expected Family Contribution (EFC): The amount that a borrower and his family can be expected to allocate to academic expenses during the school year.
Federal Work Study: A federally-financed program that allows schools to set up campus-based employment programs for financial aid borrowers.
Forbearance: Temporary deferment or decrease of education loan payments, on the basis of financial hardship during the repayment term.
Forgiveness: Cancellation by the federal government of all or a portion of a student's loan(s) under certain circumstances.
Free Application for Federal Student Aid (FAFSA): The standard application form for all federal aid programs.
Graduate PLUS Loan: A federally-backed loan program under which graduate students can borrow up to the cost of education less other aid.
Grant: A form of financial aid that is based on a borrower's financial need and that the student does not have to repay.
Guarantee Fee: A loan fee that a student pays to a lender.
Grace period: A 6-month period before the first Direct Subsidized or Unsubsidized loan payment is due.
Master Promissory Note (MPN): The binding legal document that a borrower signs when issued a student loan.
Origination Fee: A fee that a student pays to the lender for loan origination.
Parent PLUS Loan: A loan allowing creditworthy parents of undergraduate students to obtain a federally-backed loan to pay up to the total cost of education less any other aid awarded.
Perkins Loan: A federally-guaranteed and need-based student loan that is available through the university and that carries a fixed 5% interest rate.
Private Student Loan (or Alternative Student Loan): Also known as an Alternative Student Loan, this loan is issued to borrowers by finance companies or banks and is not guaranteed by a government agency.
Scholarships: Financial aid that a student does not have to repay.
Stafford Loan: A need-based, federally-backed loan that allows students to receive a certain amount of funds from lenders to cover tuition costs.
Subsidized Loan: The federal government pays the interest that accumulates on a subsidized Stafford loan while the student is enrolled at least half-time at the university.
Unsubsidized Loan: The borrower is required to pay the interest that accumulates on an unsubsidized loan, even while he or she is enrolled in college.
Scholarships
Financial aid is a student loan resource in the form of federal and state scholarships is free funding that students never have to pay back. Scholarships are typically rewarded to students who qualify for the required criteria. Several scholarships exist for the regular student, where importance is placed on ideals and values rather than academic merit.
Students will find scholarship guides at their local public and campus library. They can also obtain information and advice from their school's guidance counselor. The internet is a scholarship goldmine, and some websites allow students to apply online for scholarships. Caveat: Students should be aware of illegitimate offers and scams. FindTuition.com offers students the opportunity to search through 3 million grants and scholarships valued at more than $24 billion. The FastWeb scholarship search website contains a database with more than $3 billion in scholarships. Prospective student borrowers can also run a free scholarship search on Student Aid on the Web by visiting https://studentaid.ed.gov.
Students should also research state scholarships by visiting the financial aid offices of their anticipated future college as well as the public library and the World Wide Web.
Grants:
Grants are a form of federal or institutional financial aid exclusively presented on the basis of need and do not necessitate repayment. To locate federal grants, students should visit http://www.grants.gov, which lists more than 1,000 grant program offered by all the grant-issuing agencies of the federal government. Two prominent federal grants are the PELL grant and the Federal Supplemental Educational Opportunity Grant (FSEOG). The typical issuer of institutional grants, on the other hand, is colleges. Also known as merit scholarships or merit awards, institutional grants are extended on the basis of scholastic achievement.
Student Loans
Students will find scholarship guides at their local public and campus library. They can also obtain information and advice from their school's guidance counselor. The internet is a scholarship goldmine, and some websites allow students to apply online for scholarships. Caveat: Students should be aware of illegitimate offers and scams. FindTuition.com offers students the opportunity to search through 3 million grants and scholarships valued at more than $24 billion. The FastWeb scholarship search website contains a database with more than $3 billion in scholarships. Prospective student borrowers can also run a free scholarship search on Student Aid on the Web by visiting https://studentaid.ed.gov.
Students should also research state scholarships by visiting the financial aid offices of their anticipated future college as well as the public library and the World Wide Web.
Grants:
Grants are a form of federal or institutional financial aid exclusively presented on the basis of need and do not necessitate repayment. To locate federal grants, students should visit http://www.grants.gov, which lists more than 1,000 grant program offered by all the grant-issuing agencies of the federal government. Two prominent federal grants are the PELL grant and the Federal Supplemental Educational Opportunity Grant (FSEOG). The typical issuer of institutional grants, on the other hand, is colleges. Also known as merit scholarships or merit awards, institutional grants are extended on the basis of scholastic achievement.
Student Loans
Financial Aid
Free Application for Student Aid (FAFSA)
Included in our student loan resources are financial aid forms. The application process for federal student aid and numerous state aid programs begin with the submission of the Free Application for Student Aid (FAFSA). Eligibility for financial aid hinges upon the information that the student provides on the FAFSA, which contains seven sections with questions about the applicant, their college plans, and financial data among other things. Students can fill out FAFSA's online form by visiting the FAFSA website at http://www.fafsa.ed.gov. They will even find a worksheet that allows them to get acquainted with the questions before completing the online application.
Financial aid applicants will receive a Student Aid Report (SAR) which summarizes the data they reported on their FAFSA; it is official proof of receipt and processing of their FAFSA.
* Loan discharge form (for total and permanent disability)
* Forbearance form
* Economic hardship deferment
* In-school deferment request
* Education-related deferment
* Parental leave/Working mother deferment request
* Public service deferment request
* Unemployment deferment request
* Student loan consolidation forms
* Waiver of grace form (used to initiate early payment with current lenders)
The Stafford loan forms are as follows:
* Federal Stafford Loan Master Promissory Note
* Federal Stafford Loan School Certification
* Stafford Loan Plain Language Disclosure
The PLUS loan forms are as follows:
* PLUS Loan Application and Master Promissory Note
* Endorser Addendum to PLUS Loan Application and Master Promissory Note
* Federal PLUS Loan Information and School Certification
* PLUS Plain Language Disclosur
Included in our student loan resources are financial aid forms. The application process for federal student aid and numerous state aid programs begin with the submission of the Free Application for Student Aid (FAFSA). Eligibility for financial aid hinges upon the information that the student provides on the FAFSA, which contains seven sections with questions about the applicant, their college plans, and financial data among other things. Students can fill out FAFSA's online form by visiting the FAFSA website at http://www.fafsa.ed.gov. They will even find a worksheet that allows them to get acquainted with the questions before completing the online application.
Financial aid applicants will receive a Student Aid Report (SAR) which summarizes the data they reported on their FAFSA; it is official proof of receipt and processing of their FAFSA.
* Loan discharge form (for total and permanent disability)
* Forbearance form
* Economic hardship deferment
* In-school deferment request
* Education-related deferment
* Parental leave/Working mother deferment request
* Public service deferment request
* Unemployment deferment request
* Student loan consolidation forms
* Waiver of grace form (used to initiate early payment with current lenders)
The Stafford loan forms are as follows:
* Federal Stafford Loan Master Promissory Note
* Federal Stafford Loan School Certification
* Stafford Loan Plain Language Disclosure
The PLUS loan forms are as follows:
* PLUS Loan Application and Master Promissory Note
* Endorser Addendum to PLUS Loan Application and Master Promissory Note
* Federal PLUS Loan Information and School Certification
* PLUS Plain Language Disclosur
Student Loan Debt Consolidation
Student loan borrowers cannot consolidate student loans, both federal and private, into one private consolidation loan. Borrowers still have a choice among multiple private student loan consolidation options. The principal advantage reaped from private loan consolidation is receiving a single monthly payment. The monthly payment might also be lower since consolidation resets the loan period. As with federal consolidation, private consolidation loans that have a longer repayment period will result in higher total interest paid throughout the loan's term. Borrowers should find out whether the private consolidation loan's interest rate is variable or fixed, whether there are prepayment penalties, and whether any fees are charged.
Interest rates on private student loans are credit-based. Therefore, borrowers may be able to obtain a more attractive interest rate on their consolidated private loan if their credit rating has increased significantly since they first took out the loan. Lenders, rather than the government, determine the interest rates, and some might charge origination fees. The following is a list of lenders that consolidate private student loans.
To be eligible for a private loan consolidation, the borrower must be a U.S. citizen, reached the age of majority in the state of residence, and must have completed or will complete their degree within 30 days.
Repayment options vary depending on loan amount. Typically, all repayment plans begin 30 to 45 days following loan disbursement.
* EduCap Inc. Loan to Learn Private Consolidation LoanStudent Loan
* Collegiate Funding Services (CFS)
* Key Education Consolidation Loan
* Education Finance Partners
* Nelnet Private Consolidation Loan
* MELA Private Consolidation Loan
* Wells Fargo
* SunTrust eCon Loan
Interest rates on private student loans are credit-based. Therefore, borrowers may be able to obtain a more attractive interest rate on their consolidated private loan if their credit rating has increased significantly since they first took out the loan. Lenders, rather than the government, determine the interest rates, and some might charge origination fees. The following is a list of lenders that consolidate private student loans.
To be eligible for a private loan consolidation, the borrower must be a U.S. citizen, reached the age of majority in the state of residence, and must have completed or will complete their degree within 30 days.
Repayment options vary depending on loan amount. Typically, all repayment plans begin 30 to 45 days following loan disbursement.
* EduCap Inc. Loan to Learn Private Consolidation LoanStudent Loan
* Collegiate Funding Services (CFS)
* Key Education Consolidation Loan
* Education Finance Partners
* Nelnet Private Consolidation Loan
* MELA Private Consolidation Loan
* Wells Fargo
* SunTrust eCon Loan
Student Loan Forgiveness
Although not technically considered a type of student loan consolidation, student loan forgiveness is a very rare situation when the U.S. government will cancel all or a portion of a borrower’s student loans. To qualify for loan forgiveness eligibility, a borrower must:
1. Perform military service
2. Engage in volunteer work
3. Practice or teach medicine in specific communities or
4. Satisfy other requirements set forth by the forgiveness program
Borrowers can obtain loan forgiveness from volunteer organizations such as 1) the Peace Corps, 2) AmeriCorps, and 3) Volunteers in Service to America (VISTA). Students who are members of the Army National Guard may qualify for its Student Loan Repayment Program, which provides loan forgiveness up to $10,000. The National Defense Education Act allows students who work as full-time teachers in an elementary or high school that serves financially-disadvantaged students to have part of their Perkins loans forgiven. A good number of law schools provide loan forgiveness to students who serve in non-profit or public interest positions.
Borrowers can also obtain loan forgiveness from the U.S. Department of Health and Human Services, which sponsors the Nursing Education Loan Repayment Program and the National Health Service Corps. Beneficiaries of these loan forgiveness programs are registered nurses and physicians who agree to work for a specific number of years in areas lacking adequate health care. Many private healthcare institutions and hospitals recruit physical and occupational therapists by way of loan forgiveness. Medical students can also avail themselves of the following loan repayment programs:
1. Disadvantaged Health Professions Faculty Loan Repayment Program
2. US Air Force, Army, and Navy Financial Assistance Programs
3. The National Institutes of Health (NIH) Educational Loan Repayment Programs
4. American Academy of Family Physicians Foundation
5. Nicholas J. Pisacano MD Memorial Foundation Inc.
6. Indian Health Service (IHS) Loan Repayment Program
Student Loan Consolidation
1. Perform military service
2. Engage in volunteer work
3. Practice or teach medicine in specific communities or
4. Satisfy other requirements set forth by the forgiveness program
Borrowers can obtain loan forgiveness from volunteer organizations such as 1) the Peace Corps, 2) AmeriCorps, and 3) Volunteers in Service to America (VISTA). Students who are members of the Army National Guard may qualify for its Student Loan Repayment Program, which provides loan forgiveness up to $10,000. The National Defense Education Act allows students who work as full-time teachers in an elementary or high school that serves financially-disadvantaged students to have part of their Perkins loans forgiven. A good number of law schools provide loan forgiveness to students who serve in non-profit or public interest positions.
Borrowers can also obtain loan forgiveness from the U.S. Department of Health and Human Services, which sponsors the Nursing Education Loan Repayment Program and the National Health Service Corps. Beneficiaries of these loan forgiveness programs are registered nurses and physicians who agree to work for a specific number of years in areas lacking adequate health care. Many private healthcare institutions and hospitals recruit physical and occupational therapists by way of loan forgiveness. Medical students can also avail themselves of the following loan repayment programs:
1. Disadvantaged Health Professions Faculty Loan Repayment Program
2. US Air Force, Army, and Navy Financial Assistance Programs
3. The National Institutes of Health (NIH) Educational Loan Repayment Programs
4. American Academy of Family Physicians Foundation
5. Nicholas J. Pisacano MD Memorial Foundation Inc.
6. Indian Health Service (IHS) Loan Repayment Program
Student Loan Consolidation
Student Loan Consolidation Programs
A federal consolidation loan combines all outstanding student loans into one manageable loan. All federal student loans qualify for student loan consolidation, including: Stafford, PLUS, Perkins, Direct loans, HEAL, SLS, Health Professional Student Loans, NSL and Guaranteed Student loans. Both parent and student borrowers can take out a federal consolidation loan; however, they must consolidate their loans separately. Due to a provision which took effect on July 1, 2006, married students can no longer combine their loans for consolidation purposes.
There is no fee to consolidate federal loans. Consolidation is only available after loans enter the repayment period or during the grace period. It is no longer possible for students to consolidate while they are enrolled in college. By contrast, parents are allowed to consolidate PLUS loans at any point in time. Borrowers can also consolidate loans that are in default where repayment arrangements are satisfactory.
Even if parents and students have all of their loans with one particular lender, they can choose to consolidate their loans with a different lender. This helps them obtain better savings and a lower rate. A minimum balance for loan consolidation is required by a majority of lenders.
Borrowers should consolidate federal and private student loans separately, since federal consolidation offers lower interest rates and greater advantages. The interest rate is computed by averaging the interest rates of the loans to be consolidated and rounding it up to 1/8 of a percent. The interest rate of a consolidated loan can be as low as 4.5%; it is capped at 8.25%. However, if a borrower extends the loan's term, the interest amount he will be required to pay over the lifetime of the loan will be higher.
There are no credit checks associated with federal loan consolidation. The repayment period is longer. A federal consolidation loan usually decreases the amount of the monthly payment, sometimes by as much as 60%, by extending the loan period beyond the standard 10-year repayment plan. The repayment period can range anywhere from 12 to 30 years depending on the size of the loan.
There is no fee to consolidate federal loans. Consolidation is only available after loans enter the repayment period or during the grace period. It is no longer possible for students to consolidate while they are enrolled in college. By contrast, parents are allowed to consolidate PLUS loans at any point in time. Borrowers can also consolidate loans that are in default where repayment arrangements are satisfactory.
Even if parents and students have all of their loans with one particular lender, they can choose to consolidate their loans with a different lender. This helps them obtain better savings and a lower rate. A minimum balance for loan consolidation is required by a majority of lenders.
Borrowers should consolidate federal and private student loans separately, since federal consolidation offers lower interest rates and greater advantages. The interest rate is computed by averaging the interest rates of the loans to be consolidated and rounding it up to 1/8 of a percent. The interest rate of a consolidated loan can be as low as 4.5%; it is capped at 8.25%. However, if a borrower extends the loan's term, the interest amount he will be required to pay over the lifetime of the loan will be higher.
There are no credit checks associated with federal loan consolidation. The repayment period is longer. A federal consolidation loan usually decreases the amount of the monthly payment, sometimes by as much as 60%, by extending the loan period beyond the standard 10-year repayment plan. The repayment period can range anywhere from 12 to 30 years depending on the size of the loan.
Student Loan Taxation and Consolidation
By: Mevish Jaffer
Graduating from college opens up a whole new, exciting world for you. It also marks the beginning of an entirely new chapter in your life, hopefully one filled with never-ending career possibilities. On the flip side, graduating from college also means repaying all those student loans you took out while trying to further your education.
Repayment of student loans also includes the addition of student loan taxation. Fortunately, student loans qualify for interest deductions on taxation. Student loan taxation deductions can be claimed if you used the money from student loans to pay for school associated costs such as tuition, fees, books, supplies, room and board, etc. The tax break that interest deductions on taxation for student loans provide, offer at least some form of relief for families who want to help their children finance college, but lack the sufficient funds.
Too Many Loans, Too Little Money
It’s highly probable that you took out more than just one student loan to get through college and that you are now juggling the task of repaying all of them back. You could be making up to 3-4 monthly payments, which is not easy when you are new to the workforce and are barely making ends-meet as it is. It may sound extreme, yet many people face the same daunting situation after graduating from college.
On the brighter side if you do find yourself struggling to make all of your monthly student loan payments, you can always opt to consolidate your loans in an effort to ease the burden. Student loan consolidation involves attaining a new loan that you can use to pay off all of your outstanding student loan debts. Additionally, the terms and conditions applied to the new loan are generally customized to meet your financial needs. This ensures that you won’t repeat defaulting on your new loan as you will be able to better afford the new monthly payment.
Advantages of Student Loan Consolidation
There are several advantages to consolidating your student loans, which all result in lessening your financial load. They include:
* Lower interest rates which save you a lot more money
* You only have to pay one lender as opposed to making payments to several different lenders
* There are many different payment plans to choose from
o Standard payment plan consisting of set monthly payments
o Graduated payment plan which starts out with low monthly payments and then gradually increases
o Variable payment plan that is adjustable with your changing income and expenses
o Extended payment plan enables you to extend the loan pay off period and decreases your monthly payments
Student Loan Consolidation Providers: Things to Watch out For
If you’re thinking about consolidating your student loans, then you probably need a student loan consolidation company to make it happen for you. However, there are some things to watch out for when choosing the right student loan consolidation lender. You have to make certain that the lender/company is credible and does not charge high upfront costs. It’s also wise to make a note of the different discounts on interest rates and conditions that various lenders are offering before making a commitment.
Paying back your student loans doesn’t have to be such a huge financial burden. You can take comfort in the fact that there are ways such as student loan taxation deductions and student loan consolidation options that serve to help ease some of the difficulties you may be facing in repaying your student loans.
Graduating from college opens up a whole new, exciting world for you. It also marks the beginning of an entirely new chapter in your life, hopefully one filled with never-ending career possibilities. On the flip side, graduating from college also means repaying all those student loans you took out while trying to further your education.
Repayment of student loans also includes the addition of student loan taxation. Fortunately, student loans qualify for interest deductions on taxation. Student loan taxation deductions can be claimed if you used the money from student loans to pay for school associated costs such as tuition, fees, books, supplies, room and board, etc. The tax break that interest deductions on taxation for student loans provide, offer at least some form of relief for families who want to help their children finance college, but lack the sufficient funds.
Too Many Loans, Too Little Money
It’s highly probable that you took out more than just one student loan to get through college and that you are now juggling the task of repaying all of them back. You could be making up to 3-4 monthly payments, which is not easy when you are new to the workforce and are barely making ends-meet as it is. It may sound extreme, yet many people face the same daunting situation after graduating from college.
On the brighter side if you do find yourself struggling to make all of your monthly student loan payments, you can always opt to consolidate your loans in an effort to ease the burden. Student loan consolidation involves attaining a new loan that you can use to pay off all of your outstanding student loan debts. Additionally, the terms and conditions applied to the new loan are generally customized to meet your financial needs. This ensures that you won’t repeat defaulting on your new loan as you will be able to better afford the new monthly payment.
Advantages of Student Loan Consolidation
There are several advantages to consolidating your student loans, which all result in lessening your financial load. They include:
* Lower interest rates which save you a lot more money
* You only have to pay one lender as opposed to making payments to several different lenders
* There are many different payment plans to choose from
o Standard payment plan consisting of set monthly payments
o Graduated payment plan which starts out with low monthly payments and then gradually increases
o Variable payment plan that is adjustable with your changing income and expenses
o Extended payment plan enables you to extend the loan pay off period and decreases your monthly payments
Student Loan Consolidation Providers: Things to Watch out For
If you’re thinking about consolidating your student loans, then you probably need a student loan consolidation company to make it happen for you. However, there are some things to watch out for when choosing the right student loan consolidation lender. You have to make certain that the lender/company is credible and does not charge high upfront costs. It’s also wise to make a note of the different discounts on interest rates and conditions that various lenders are offering before making a commitment.
Paying back your student loans doesn’t have to be such a huge financial burden. You can take comfort in the fact that there are ways such as student loan taxation deductions and student loan consolidation options that serve to help ease some of the difficulties you may be facing in repaying your student loans.
