Need Student Loan Consolidation?

Need Student Loan Consolidation?

If you're buried under a mountain of debt because of your student loans and you spend so much on your monthly payments that it interferes with your ability to pay your other bills or have any money left for entertainment, then you should seriously think about consolidating your student loans. There are many benefits to consolidating your student loans, and it could help you to gain control of your financial situation and make life a little easier, at least in regards to your personal budget.

Payments are lower: When you consolidate your student loan payments, your monthly payment amount will be lowered, in many cases by as much as 50%. The reason for this is that since the life of the loan is longer, your payments are spread out over a longer period of time. Another reason your payments might be lower is because of the lower interest rate you will get with a larger single loan.

Payments are easier: It's much easier for you to keep track of a single loan than it is to pay on multiple loans that you have acquired over the span of your college years. Plus the payments are easier since they are less each month.

Consolidation loans are easy to apply for: There are different plans available that can be customized to your particular situation as far as payment amounts and years of the loan go. In addition, you might not even have to go thru a credit check or pay processing fees, especially if you take advantage of a government consolidation loan. They're also easy to qualify for and you can even consolidate while you're still a student and receive an additional grace period of several months.

Gives you peace of mind: After you graduate from college, you'll have plenty on your mind with trying to start a new career, so consolidating your loans and enjoying a grace period and lower payments can be a big help to you financially.

Rates are competitive: Student loan consolidation loans can be obtained from the government if you have the right type of loan to qualify for it. Getting your consolidation loan from the government means that you'll get low interest rates. Even if you take a consolidation loan from the private sector, you can still find good rates since this is a very competitive market and the banks and finance companies are trying to win over your business.

You may pay out more for your loan: One draw back to consolidating your student loans is that since you will be drawing out the length of your loan, you might also have to pay more. It'll be up to you to decide which is more important - having lower monthly payments or paying less over the life of the loan.

Source : www.articlecircle.com/business/financing/loans/need-student-loan-consolidation.html

[ ... ]

The Benefits of Federal Student Loans

The Benefits of Federal Student Loans

The average student who graduates from university will find it hard to make repayments for their student loan. Unless you win the lottery or have rich parents you won't be able to celebrate your financial freedom just yet. But there is a way out for students with high repayments.

A standard federal student loan is easily spent during the course of your studies and you may find yourself with more than just one federal student loan. As a young student you don't want to be under pressure to make your federal student loan repayments while studying. In order to help students still studying and students who have recently graduated, financial lenders have developed programs to lower your interest rates from as high as 5.5% to as low as 1.75%.

Typically federal consolidation student loans can save gradates around 50% in payments every month which is around $160. However if you have more than one loan then your payments will be slightly high but you'll still get the massive savings offered by a federal consolidation student loan.

The period that you can consolidate your federal student loan can be anywhere from nine years to twenty years. Most lenders will not require a credit or income check because these loans are designed for students. And like myself a couple of years ago, I was flat broke working at as a delivery boy.

Why Apply For A Federal Consolidation Student Loan?

Suppose you don't come from a well off family and you don't have a high paying job, and you want to go to college. A few years ago before consolidation loans most people would go to college and work part time so they can pay off their loans or maybe even quit college because the payments are too high or they can't get enough time to study. Federal consolidation loans are here to support students in need of an education. So if you're in this position then check them out as soon as you can.

How Does A Federal Consolidation Student Loan Work?

If you currently have a loan with two lenders for the total of $15,000 at 5% interest and you want to consolidate your student loan you can apply from a few lenders. How it works is ingenious. The lender who is consolidating your federal student loan will pay off the two lenders that you're already making repayments to. Then you'll get a new loan with the new lender and you make all repayments to them with a much lower interest rate of around 1% - 2% for the next few years.

Now that you know how federal consolidation student loans work you should start looking for a new lender and consolidate your loan today. Good luck with all your studies and I hope you enjoy the rest of your studies.

Source : www.articlecircle.com/business/financing/loans/the-benefits-of-federal-student-loans.html

[ ... ]

College Credit Cards: Building a Good Credit History at an Early Age

College Credit Cards: Building a Good Credit History at an Early Age

College student credit cards are intended specifically for students who normally would not qualify for regular credit cards, as they do not have a steady income or a credit history. As a student, it is a good idea to establish a first-rate sound credit history at an early age, which would help you get a regular credit card in the future, regardless of your employment status.

In theory, college credit cards are identical to regular credit cards. However, a college credit card is meant for college students who do not have previous credit history. Hence, these cards have more restrictions or conditions than the generic cards.

The top three restrictions include:

• - Co-signature from the parent or guardian at the time of application
• - Lower credit limit (Example: $500 to $1000)
• - Higher interest rates than traditional cards
• - Normal interest rates on these cards are 16-18%

A college credit card has become a necessity for most students. The advantages are many provided you understand how the credit card works and use it with caution. Students, especially in United States, are prolific users of these cards. This is primarily because it gives them great flexibility to manage their credit.

Students can use college student credit cards to pay their tuition fees, to rent a car, or to fill gas.
In fact, there are certain cards that offer low interest rates to students who maintain good grades. These cards are also packed with rewards and benefits. These cards help students to learn and manage their finance at a young age.

A college credit card can also be a pre-paid one, with a ceiling on the credit limit. This ensures that the student does not overspend and it also helps parents keep an eye on their children's spending behavior. There are many college credit card options from Citi, Discover, and Chase. Apart from these, there are many pre-paid card options as well.

Most of these student cards have many similar features including:

• - 0% APR for the initial period of usually 6 months on both purchases and balance transfers (typically)
• - No annual fee, at least for the first year
• - Online account management at no extra cost

While many of the above characteristics are also applicable to many traditional more generic credit cards, there are certain distinctive features that make the college student credit card stand apart including:

• - 0% liability for any unauthorized charges on the account
• - A good GPA helps earns points for the cards
• - Theft and fraud alerts

It is a good thought for students to have their own credit card. However, it is important to understand that, at an early age, bad credit could have horrible consequences. Parents can assist their kids in choosing card based on their child's spending behavior and repaying capability. Credit cards can provide financial flexibility at a young age but only if they are used judiciously.

Source : http://www.articlecircle.com/finance/personal-finance/college-credit-cards--building-a-good-credit-history-at-an-early-age.html

[ ... ]

Federal Student Loan Consolidation Benefits Several Students

Federal Student Loan Consolidation Benefits Several Students

Have you finished your graduation? If yes, the time has arisen for you to understand the responsibilities after the fun days and celebrations of college. Its time for you to search a good job and start earning in order to support your parents in every step whether in case of paying off rents or any repaying any other utility bills. Another obligatory responsibility for you is to pay off the federal student loans.

These loans have once helped you efficiently in paying off your college fees. Now its time for you to repay it as the grace periods will end soon. You may be facing difficulties to meet the loan payments due to your financial incapability but continuously missing payments may result in accumulation of defaulted student loan. This defaulted student loan can create bad impact on your credit ranking.

Therefore you need to take the necessary measures as soon as you find difficulties in paying off the liabilities. Whether you have one or more than one student loan repayments the federal student loan consolidation can make your repayments simple, easy and also can lower the reimbursements obligations.

The federal student loan consolidation unites all the federal loans into one single loan of the graduate who has finished his studies into a single loan. Again, he/she can renegotiate the current rate of interest and the repayment time with this procedure of student loan consolidation. Several kinds of federal student loan consolidation are obtainable for students possessing defaulted student loan.

The individuals can select the one appropriate for them depending on their budget and requirements. One thing that is necessary to remember in this regard is that any individual who has opt for personal loan consolidation facility will not be eligible any more for plans of federal student loan consolidations.

Individuals are free to pay off more than the actual amount of repayment after the federal student loan consolidation process every month in order to repay the entire loan as soon as possible. They need not to pay any extra charges or penalties for their payments. Rather the federal government will certainly welcome their attempt. It is also recommended so that individuals need to pay off less money as interest repayments.

The loan will be considered as defaulted student loan if individuals have not made any repayments within 180 days. In this case also individuals can opt for the process of federal student loans consolidation. Another fact to remember in this regard is that individuals can not consolidate federal and private loans together into one single loan.

The private lenders give loans in order to earn profit. Therefore the terms and conditions of these private loans are favorable to the lenders. But the student loans provided by the government include terms that will be favorable for students. Moreover federal loans have fixed interest rate whereas private loans may or may not have fixed interest rate.

As a result naturally combining both these loans are not possible. Students need to have minimum $10k as outstanding loan amount to adopt this process of consolidation.

Source : www.freearticledirectory.co.uk/index.php?page=article&article_id=27450

[ ... ]