Many people consider an education to be the vehicle to the future – a way to fulfill their professional and personal dreams. Travel, family, owning property, wealth, opportunity and happiness seem more attainable with an education.
And yet, many students finish their education feeling cheated. They are left with a piece of paper, a massive job hunt and often more than $20,000 in debt. This can be discouraging. What many students don’t realize, however, is that they don’t have to be controlled by their student debt. In fact, they can control the purse strings.
Consolidating student loan debt is one way that many young people are using to take control of their financial future. They already have the education and now they need to move forward in a positive way.
Normally, with debt consolidation people are able to combine all of their debt, including credit cards, lines of credit and loans, into one big loan. This can result in lower interest rates and savings, as well as less stress and hassle.
With student loan debt consolidation, there are some added benefits:
1. While with most debt consolidation programs, a person is required to qualify based upon their credit rating, student debt consolidation programs don’t. So, even if you have a poor credit score, you are able to access the benefits of debt consolidation.
2. While some people may be restricted in terms of the amount they can receive in one loan to consolidate their debt, student loan debt consolidation typically has no maximum amount.
3. If money is ever tight, with student loan debt consolidation, people can postpone repayment until graduation or until they get a job.
4. With student loan debt consolidation, the debt is usually discharged at the death of all borrowers. So, you won’t be leaving an unnecessary burden behind on your co-signers or family members.
5. Everyone loves to save money on taxes and with student loan debt consolidation the interest you pay may be tax deductible.
So, if the amount you owe the bank for your education is getting out of hand or you’ve just graduated and you want to make repayment easier, a good student loan debt consolidation plan could be right for you. Check into local financial institutions and consider seeing a credit counselor to help you.
By: Kathy Burns-Millyard
Posts Tagged ‘Loan Consolidation’
Do Federal Consolidation Loans Really Help Students?
January 18th, 2010
What are federal consolidation loans? A proud college senior only lacks a few months until graduation day when her studies will be over. She will walk away with her diploma in her hand, ready to step into her new career. Suddenly, the realization hits her. She had never really thought about it before. There are a number of student loans that she has to start paying off right after graduation, and her beginning salary isn’t enough for living expenses plus all of those loan payments. What will she do?
The simplest way to solve her problem is to consolidate all of her federal loans into one federal consolidation loan. This kind of loan is a way to refinance all of your existing federal loans into one fixed-rate loan.
A consolidation loan is an excellent way to manage your finances, it provides immediate relief from high payments and it provides long range benefits. One of the immediate benefits is that there are no application fees, hidden charges or credit checks.
By consolidating her federal loans she can save up to 53% on her monthly payments, making them considerably cheaper and easier to take care of. For example, according to StudentLoanConsolidator.com, if she has $50, 000 in different federal loans, her monthly payment right now would be $570. 80. After consolidation, she would pay just $343. 88 a month. That is a monthly savings of $226. 92!
Applying for federal consolidation loans is really quite simple. You need to have your 4 digit FAFSA pin number, the loan details for each federal loan and know which loans you want to consolidate. You will need to do some research about the different types of repayment plans you can choose from, so you will be ready to select the plan that best suits your individual needs.
When you consolidate all of your federal student loans into one loan you can extend your repayment plan from ten years up to thirty years. This will lower your monthly payments considerably, allowing you to have the money for housing expenses, car payments and any career related expenses you might have. In a consolidation loan there are no penalties for paying it off earlier. If you have extra money one month, you can pay an extra amount and reduce the length of your loan.
Federal consolidation loans are the answer to the financial woes of many graduating college seniors who are just entering their new career. When you make the decision to consolidate your financial loans, you will be able to leave your financial woes behind, and begin to enjoy financial freedom.
By: Charles Gloson
Loan Consolidation Help For Those With Very Bad Personal Credit
January 8th, 2010
Crises regarding bad debts may happen to nearly everyone at some point in life. Maybe you have recently been laid off from your job or experienced a long period of retrenchment. Financial crises can also arise when your loved ones were struck with chronic diseases and serious medical problems that wiped out your personal savings. When you find yourself overwhelmed with more and more debt repayments, fret not.
It is normal to forget and leave out one or more payment checks when you have to handle multiple debts and loans from loan creditors. That comes at a penalty of exorbitant overdue surcharges. Adding on the interests on your loan principal, you can jolly well be paying for these bad credit loans over a rather long time. Gradually, you get emptied bank savings while your debts carrying on increasing. Having no correct planning and debt consolidation assistance, it may be tough to get out of bad debts cleanly.
Simply speaking, a loan consolidation modifies all of your various bad credit & unsecured loans into one single new debt. As an illustration, your many loan payments for credit card arrears, payday loans etc can be consolidated into one single monthly payment. This way, all your high APR interest fees you are repaying might be reduced considerably together with those annoying late penalties. These are the positive aspects of debt consolidation that can be critical for absent minded borrowers. One more good point is, such loan consolidation programs offers many people to find back their confidence again, and consequentially enjoy zero debt lifestyles.
So what are the unsecured loans that can be valid for consolidation? Actually there are quite a few bad debts that can be managed via loan consolidation, including hire-purchase installments, shopping card debts, credit card bills, personal loans or/and utility bills. Next, how can one initiate loan consolidation? The truth is, the process is quite simple. Check out free debt consolidation plans online that focus in enhancing those with debt and/or loan payment issues or restore poor FICA score. You do need to furnish a brief confidential application form, that is used by a financial adviser that works with you to systematically develop a loan settlement schedule with reduced interests. She or he will be the one contacting your lenders to decrease interest rates and write off fees.
By: Morgen King