Learn How Student Debt Consolidation Loans Can Help You Save
Posted by admin | College And University | Posted on March 6th, 2010
Higher education is becoming so expensive these days that it’s rare to find a student who doesn’t need some type of financial aid to make it through to graduation. Universities and colleges award grant and scholarships as gifts or rewards to assist students, but many still find it necessary to take out student loans. Unlike scholarships and grants, they need to be repaid upon graduation, and that is when many people consider student debt consolidation loans.
A lot of people graduate with a good degree and land a well-paying job, but still struggle with repaying multiple student loans. They know they’ll be in good financial shape ten years from now, but what about today? They feel saddled with student loan debt and unsure of how to handle the payments, especially in the early years just after graduation. For many of them, consolidation is the answer.
One way to look at consolidation is this: you are handing in your multiple student loans to a consolidation lender. He pays those individual loans off, and then you must repay him. You are, in effect, trading in multiple loans for just one loan.
As long as you are finished with school, you could be eligible for consolidating your student loans. It depends what consolidation company you choose to go with, but they may or may not require you to have a minimum amount of debt before you can be eligible.
By law you may choose any consolidation lender that you want. It does not have to be the same lender that your student loans came from. That may be a good place to start looking just for simplicity’s sake, but you can ultimately choose any company out there to handle your consolidation.
Whatever company you decide to go with, never pay any consolidation fees up front. Consolidating your federal loans is always free. Anyone who is trying to charge you up front for them is not legitimate. Be careful of scams when it comes to debt consolidation, because there are a lot of people out there trying to prey on those desperate to end their financial worries.
You can consolidate as many or as few of your student loans as you like. Some people even consolidate a single loan just for the purpose of lowering the monthly payment. The only rule is that loans can only be consolidated once-in other words, no consolidating a consolidation loan. Some people purposely consolidate all their student loans but one, so that if they ever want to re-consolidate they can throw it in the mix and do so legally. You can also consolidate whenever you like, as long as you are within the ten-year repayment period of your student loans.
Hopefully this article has helped you to understand the basics of student debt consolidation loans and what they are. Many people opt for consolidation every day, and others choose to keep their loans separate. Whatever you choose to do about your student loans, make sure to be educated in your decision.
Private Student Loans Through Nextstudent Help Finance Rising Education Costs
Posted by admin | College And University | Posted on February 17th, 2010
NextStudent Private Student Loans Informal Article
Melissa Bannon
11/16/06
Version 1.0
440 words
Private Student Loans through NextStudent Help Finance Rising Education Costs
The cost of higher education is on the rise across the United States, and many students and parents are feeling the crunch since federal student aid is not able to cover the total cost of college. As a result, NextStudent, a Phoenix-based premier education funding company, offers private student loans for undergraduate and graduate students who are unable to cover their education costs with federal student aid.
Student borrowers can borrow as much as the full cost of college, less any financial aid they have received. The available annual maximum is $40,000 or the calculated cost of attendance (lesser amount) with a program maximum of $130,000.
According to NextStudent (http://www.nextstudent.com/), one of the additional benefits of its Private Student Loan Program is that borrowers have the ability to apply for an unsecured and credit-based private loan at anytime during the school year. As a result, NextStudent’s private student loans can help students cover not only tuition, fees, books and housing, but also additional educational costs that students might not have factored into their initial funding needs, such as computers, supplies and other everyday expenses related to education.
Borrowers in Control
NextStudent’s Private Student Loan Program puts borrowers in control of the loans they receive by distributing funds directly to the borrower. Additionally, student borrowers may qualify for a student loan (http://www.nextstudent.com) without a co-signer. However, by applying with a co-signer borrowers are more likely to get approved by NextStudent. Borrowers also have a choice of various money-saving repayment options, and interest payments may be tax-deductible.
Student borrowers have up to 20 years to repay their loan. However, student borrowers with cumulative balances of more than $40,000 may have their loan term extended to 25 years. The minimum loan payment on a private student loan is approximately $25.
Accessible Funds for Students
NextStudent’s undergraduate and graduate private student loans (http://www.nextstudent.com/private_loans/private_loans.asp) are easily accessible to many students. To be qualified, students must be enrolled in school at least half-time in a degree or certificate program at a school approved by The Education Resources Institute, TERI, a nonprofit organization by which all NextStudent private student loans are guaranteed. Private student loans are also available for those currently enrolled in distance-learning programs and for international students who may not qualify for federal aid.
NextStudent offers these student loans (http://www.nextstudent.com) throughout the year with no deadlines or time constraints so that eligible undergraduate and graduate students can achieve their dream of a college education.
About NextStudent
NextStudent, federal lender code 834051, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education finance products and services including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private student loan consolidation (http://www.nextstudent.com/consolidation_loans/consolidation_loans.asp) programs, and college savings plans.
The NextStudent Scholarship Search Engine, one of the nation’s oldest and largest scholarship search engines, is updated daily, available free of charge, completely private and represents 2.4 million scholarships worth $3.4 billion.
For more information about NextStudent and its student loan programs, please visit the company’s Web site at http://www.nextstudent.com/.
Student Loan Repayment 101
Posted by admin | College And University | Posted on February 3rd, 2010
Unless you plan on being a student the rest of your life, student loan repayment is inevitable, and the ins and outs of student loan repayment can be confusing and overwhelming. The financial advisors at NextStudent, a leading Phoenix-based education funding company, would like to help clear the murky waters by defining terminology and laying out your student loan repayment options.?
Understanding Your Student Loan Repayment Options
A grace period is a pre-determined amount of time allotted to student borrowers after they leave school or drop below half-time enrollment before they must begin repayment of their federal student loans. Grace periods vary in length based on the type of student loan: Stafford loans have a grace period of six months; Perkins loans have a grace period of nine months. PLUS, Grad Plus and Federal Student Loan Consolidation loans have no grace period.
Deferment allows you to temporarily postpone your student loan payments (in most cases, up to a total of three years over the life of the student loan) if you’re unemployed or experiencing economic hardship. You can also request in-school deferments on your federal student loans while you’re enrolled at least half time.
While you’re in a grace period or in deferment, the interest on your Perkins and subsidized Stafford loans will be paid by the government. But you’ll be responsible for the interest on your PLUS, Grad PLUS and unsubsidized Stafford loans—any unpaid interest that accrues on these student loans during grace and deferment periods will be added to your principal loan balance for you to repay once repayment starts or resumes. If you want to avoid interest being added to your principal loan balance while you’re in a grace period or in deferment, you can choose to make interest-only payments during that time.?
Forbearance also allows you to temporarily postpone your student loan payments. When you’re in a forbearance period, you’ll have to pay any interest that accrues, even on Perkins or subsidized Stafford loans.??
Repayment Plans
Perkins, Stafford, PLUS and Grad PLUS loans have a standard repayment period of 10 years. If your standard monthly payment amount is higher than you’d like, you have three other repayment plans you can choose from that may make your monthly payments more affordable:
Extended Repayment is available to you if your federal student loans total more than $30,000 and if you received your first federal student loan on or after October 7, 1998. Depending on your student loan amount, you could extend your repayment period up to a 25-year term.
Graduated Repayment allows you to make lower payments at the beginning of your repayment term and gradually increases your monthly payment amount over time.
Income-Sensitive Repayment bases your monthly payment amount on your monthly income. You have to submit documentation of your income to qualify, and you have to requalify each year.
Student Loan Consolidation
If you’ve taken out any federal student loans, you’re eligible to apply for a Federal Student Loan Consolidation from NextStudent, which might give you more time to repay your student loans and could substantially reduce your monthly student loan payment.
The repayment term on a student loan consolidation will range from 10 to 30 years, depending on your total outstanding student loan amount. Student loan consolidation loans generally have the standard federal deferment and forbearance benefits.
When your student loan consolidation is in deferment, the government will pay the interest on that portion of your student loan consolidation loan that was originally a Perkins loan or subsidized Stafford loan. During deferment, you’ll only be responsible for paying the interest on that portion of your student loan consolidation loan that was originally a PLUS, Grad PLUS or unsubsidized Stafford loan. When your student loan consolidation loan is in forbearance, you’ll be responsible for paying all interest that accrues.
You can consolidate one or more qualifying federal student loans and take advantage of one easy-to-manage loan with a single monthly payment. Our online applications are fast and easy, and there are no fees to apply for a student loan consolidation.
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.