What you Need to Know About Consolidating your Federal Student Loans
Posted by admin | Education | Posted on August 31st, 2009
So you’ve graduated from college, and after the relief and the celebrations, the realization of your adult responsibilities may be starting to set in: the job search, rent payments, utility bills. And now here’s another one: All those federal student loans that made your college years financially possible may be coming up for repayment soon. As grace periods end, whether you and your parents face just one student loan or multiple student loan balances, payments and payment dates, Federal Consolidation Loans can help simplify your repayment options and may lower your monthly loan payment obligations.
NextStudent, a leading Phoenix-based education funding company, features Federal Consolidation Loans, available to both parents and graduates, that offer all the benefits of federal student loan consolidation along with NextStudent rate reduction incentives that reward responsible repayment.
Federal Student Loan Consolidation Eligibility
In order to be eligible for student loan consolidation, a borrower’s federal student loans must be in one of the following:
Grace period
Authorized deferment
Forbearance
Repayment
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Federal student loans that are delinquent or in default cannot be consolidated through NextStudent.
In addition, students consolidating their own federal student loans can only be attending school less than half time. But, parents: You can consolidate the PLUS loans you took out for your children’s education as soon as they’ve been fully disbursed and have entered repayment, even if your children are still in school.
However, parents’ PLUS loans can’t be consolidated with children’s Stafford loans.
Understanding Your Federal Student Loan Consolidation Rate
The interest rate for your Federal Consolidation Loan will be a fixed rate and will be based on the weighted average of the interest rates on the student loans being consolidated. In a weighted average, the larger the loan being consolidated, the more the interest rate is factored into the average.
The weighted average is then rounded up to the nearest 0.125%, with a maximum interest rate of 8.25%. This will be your fixed interest rate on your Federal Consolidation Loan.
The Benefits of Federal Student Loan Consolidation
The thought of repaying thousands of dollars of student loan debt can be overwhelming, especially when you have multiple student loans with several different lenders or servicers. Besides the convenience of combining all your existing federal education loans into one single loan with one monthly payment, a Federal Consolidation Loan offers several other benefits:
A fixed interest rate—no more worries about variable interest rates going higher and leaving you guessing about your monthly payment amount
Interest rate capped at 8.25%
No prepayment penalties—you won’t be charged for paying off your consolidation loan early
No credit check and no application fees
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Consolidation loans are also often repaid over longer periods (15–30 years), which may lower your monthly payments by up to 60%.
Rate-Reduction Advantages with NextStudent
Besides all the benefits of federal student loan consolidation, a Federal Consolidation Loan with NextStudent features additional benefits you won’t find with many other lenders:
We’ll reduce your rate by 0.25% right off the bat if you sign up for our automatic payment plan to have your loan payments automatically debited from your savings or checking account. No stamps, no hassle, no having to remember to make your payments every month, AND you lower your monthly payment—make your life more convenient and get rewarded for doing it.
We’ll reduce your rate by 1% after you make 36 on-time payments—and lock that rate reduction for the life of the loan, even if you miss a payment later on down the road.
We know repayment can seem overwhelming now, especially if you’ve just graduated. NextStudent can help. A Federal Consolidation Loan with NextStudent could help you simplify your finances, may lower your total monthly payment, and may give you a little more time to pay back your student loans—the breathing room you need as you navigate that transition between college and the real world.
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NextStudent believes that getting an education is the best investment you can make, and we are 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.
Student Loan Debt Consolidation – Is Your Financial Future Important?
Posted by admin | Finance | Posted on August 29th, 2009
Like any other debt, student loans could influence your future decisions and your credit history. Additionally, when a student loan debt has exceeded eight percent of your income, it is seen as bad credit when assessed for further loans.
There are two approaches in reducing your student loan debt burden. When interest rates of loans fall, your education loans could be consolidated or refinanced.
There are several kinds of student loans. However, the most common are the federal and private student loans. The U.S. Department of Education’s Federal Student Aid programs manage the federally funded loans. The federal educational loan is the easiest kind to obtain.
Federal student loans are more advantageous compared to private student loans. The interests on federal loans are tax-deductible and on particular kinds of service, the student loan could be forgiven.
On the contrary, private loans do not provide any benefit. In consolidating your student debt, it is advisable not to mix the private and federal loans together. Be sure to consolidate every one of your federal student loans. Then, you could consolidate your private loans separately.
There are three scenarios to determine a person’s eligibility in consolidating his federal student loans. There are many kinds of student debt consolidation plans offered. When students do not consolidate their student loan debt, this will result in the inability to acquire future mortgages, car loans, credit cards, and other kinds of credit.
Student Loan Consolidation – How Does Consolidation Help?
When a certain student initially applied for a number of student loans from different providers and organizations, each student loan agency or provider offered distinct interest rates as well as term or period of time for the loan to be paid back. The concept of a student loan consolidation is to grab all the varying student loans and put them all into one single, simple and handy loan.
Then the student will only make one payment each month for all the loans incurred, than several or individual loan payments each month; with this, the student will then save time as well as money. With a much lower interest rate plus less checks to issue each month, are a few of the advantages of executing a student loan consolidation.
Who Should Consolidate Student Loans?
Generally, individuals apply for a student loan consolidation to cut on their payments each month and to save on money for an accumulated period of time. The faster you settle your student loan, the more money you can save.
5 Student Loan Consolidation Advantages
1. Lower payments every month.
2. Have simple and convenient loan payments.
3. Have fixed interest rates. With certain federal student consolidation loans, one may have a permanent fixed rate on a student loan.
4. Payment period can be extended. You can then give attention on earning money rather than making several monthly student loan payments.
5. In school consolidation arrangements. Student loan consolidation can help ease the burden of several monthly bills.
Student Debt Consolidation Loans: A+
Posted by admin | Debt Consolidation | Posted on August 27th, 2009
Student Debt Consolidation Loans
Only a student knows how hard the life of a student is. With the pressure coming from all angles, it is difficult to keep focus on studies and the related matters. Money is an integral part of everybody’s lives and that includes students who need them for many reasons. Moreover, as with many people, there can be times where the pocket can be a little tight and the student may have to resort to taking loans from different sources. In this process, the students may find themselves subjected to pressures of paying interest rates for their loans. The better option then for all the students is to take a student debt consolidation loan.
A student debt consolidation loan will consolidate all the loans that a student owes and combine into one single loan. The advantages of this process are plenty as well. Advantages such as:
•The student debt consolidation will allow a student to focus on one single loan. This is relatively easier than focusing on multiple loans.
•The interest rate on student loans is very low, with usual interest rates ranging from 1% – 3%.
•The interest rates are charged only when the students are out of the college and have started working.
•There are many rebates that the students can get with the student debt consolidation loan that makes the repayment a lot easier.
•A lot of financial pressure is also removed of the students; this allows more concentration on the studies.
•A student debt consolidation loan also prevents a likelihood of a student being turned into a borrower with bad credit history.
With these advantages, it is better to have student debt consolidation loan than keep on fighting with the loan and its payments.
Any student who wants to apply for the debt consolidation loan has two options available to him, those two being:
Loans from government agencies– there are many government related organizations, which deal in providing loans to the students. So if a student wants to take an authorized loan then this is the answer.
Loans – Many other authorities deal in student debt consolidation loans. This is another option for students who do not get loans from government authorities.
The process of application is simple as well for the student debt consolidation loan. All a student borrower of the loan needs to do is just estimate his requirements and then submit an application to the lender of the loan. Being a student loan it will in all likelihood will be approved in a few working days.
To learn more about student debt consolidation loans, please visit Total Debt Relief.