A Closer Look In to Student Loan Consolidation Programs

You’ve graduated – congratulations! If you took any student loans in order to pay your college tuition and stuck with a load of payments consider choosing one of the student loan consolidation programs available. Consolidating your loans will make life much easier. Knowing that you will only have to make one, instead of several payments per month, is only one of many benefits student loan consolidation programs include.

Student Loan Consolidation Program Benefits

By consolidating your loans you will be enjoying a fixed rate and one payment per month. The rate you will be paying should be an average of the rates you are supposed to be paying and should not exceed a maximum of 8.25%. In fact, many lenders offer rates low as 4.5% which I believe is incredible. Use a student loan payment calculator,When choosing a student loan consolidation program, to find whether you will get an interest deduction or not.

Another great benefit you will be enjoying with a student loan debt consolidation program, especially if you have to payback private loans for students with bad credit, is a boost of your credit ratings. The fact that you consolidate other loans means that you paid them off which basically means your credit ratings improved.

I would like to consolidate federal student loans with private ones, should I?

Federal student loans should be consolidated without hesitation however, do not consolidate them with private student loans the rate you will be paying will be a very high one. Do not consolidate Perkins loans because the student loan repayment plan offers a fixed rate and relatively low one as well. The most important thing to know is to consolidate the loans that do not include fixed rates. Consolidate private and federal loans separately and pay attention to the interest you will be paying if the total interest you are quoted to pay is higher than your original interest don’t apply for a loan.

Do some due diligence prior to you making this important decision and don’t forget to compare rates and offers from various lenders. Take your time when looking into this subject and make sure that you overview enough student loan consolidation programs to make a financially educated decision.

Calculating Your Student Loan Repayment Plan

Choosing the best student loan repayment plan can be quite confusing for an inexperienced graduate. An online student loan payment calculator is known to be a very useful tool for experienced users as well. It helps you calculate your debt and the amount of money it will require to cover it over a specific amount of time. A student loan payment calculator can do wonders when deciding which student loan repayment plan to work with.

Choosing a Student Loan Repayment Plan

According to the annual income you need to pay off the debt you will know which student loan repayment plan best fits your need. Level repayment plans are selected by default however; they aren’t necessarily the best for your situation. It is important not only to look at the interest rate but the repayment period should be given substantial weight for making a better decision.

Private student loans tend to carry different laws than federal student loans. You may however, find similarity between the two. Students who owe more than $7,500 in a few different loans are recommended to consolidate them for flexibility. A student loan debt consolidation can also be calculated with a payment calculator.

Calculating Student loan Consolidation Programs Payments

One of the most often selected student loan repayment options is a student loan consolidation program. This is actually a loan that helps you manage your monthly payments in an efficient way. If you have obtained private student loans for bad credit, consolidating them will help boost your credit ratings. A student loan payment calculator can be used here as well since you are looking for some sort of loan repayment.

It is important not to bas your decision only on one calculator or one lender. Shopping around by browsing the net or any other source of information, will prove to be very beneficial and money saving. Make sure to compare a few quotes from at least 3 different lenders for making a better decision.

Qualifying For a Student Loan When Labeled As Bad Credit

If you’re having trouble qualifying for a Student Loan due to your “bad credit status”, there are still certain actions you can take to get approved. First try to get one of the federal student loans available. Be sure to do this properly, meaning, apply for all loans offered by the government, before applying for a Private Student Loan.

A PLUS loan can be suitable for you if your parents have better credit ratings than you and are willing to help you, by taking the responsibility of borrowing the needed money for you.

No Success with Federal Student Loans, Are Private Student Loans OK?

Defaulted federal student loans are one of the main reasons for not getting approved for a federal student loan. Bad Credit is not an issue when it comes to federal loans. The lender assumes that the student will go from high school to college and therefore, could not build a credit history. If you’ve tried and for any reason your student loan application was declined, a private loan for a student with bad credit can be the next best solution for you.

Private student loans for students with bad credit ratings will naturally carry higher interest rates than federal student loans or private loans for excellent credit ratings. Using student loan payment calculatorswill help you compare offers for different online lenders and by choosing a proper student loan repayment plan you might even be surprised of getting an attractive student loan offer.

School is Over, Why Stay Stuck with Bad Credit?

Once you’ve graduated, grace period (lasting up to 9 months depending on the loans you have obtained) will begin. During this time you can start looking for a job and choose your student loan repayment plan. If you have borrowed a minimum of $7,500 in more than one student loan, joining a student loan consolidation program will be beneficial. Not only will you benefit from a fixed, lower monthly interest rate and payment but, consolidating your student loan debt will also improve your bad credit ratings.

Student Loan Repayments: Don’t Get Confused!

Once graduated and grace period starts you should begin searching for a job. If you have obtained student loans during your college studies, grace period will be the best time for you to choose a Student Loan Repayment Plan that will fit your needs. It is important not to panic about paying back the debt you owe. Panicking leads to confusion and confusion won’t help you at all. By using a trustable student loan payment calculator you will be able to find the best repayment plan available to work with.

The Type of Student Loan Repayment Options Available

Federal student loans carry different loan repayment laws than private student loans. However, similarity exists between the 2 types of loans. For example, in both cases, loan repayment begins 6 – 9 months after graduation. The student loan repayment plans available are designed to help students repay their loans in the most flexible way possible, on a case to case basis. Amongst the most popular types of loan are the following:

  • Level / Standard Repayment Plan
  • Graduated Repayment Plan
  • Income Sensitive Repayment Plan
  • Extended Repayment Plan

Choosing a Student Loan Repayment Plan

As understood you should choose a repayment plan based on your financial capabilities. The Standard repayment plan is the default plan you get. It allows the student to pay back the loan over a 10 year period. Monthly payments don’t change during the repayment period.

A Graduated repayment plan will allow you to pay a fixed, smaller amount monthly during the first few years. With time the amount will grow. This repayment plan will be found suitable for people expecting a fixed income.

Choosing an Income Sensitive Repayment Plan is in fact like choosing a Graduated repayment plan except for 1 difference. You will be paying a certain percentage from your income.

Extended repayment plans allow you to pay off your debt in small amounts over a period of 25 – 30 years. This repayment plans carries the highest interest rates.

I Have a Few Student Loans to Pay Back, Which Repayment Plan Should I Work With?

Consolidating student loan debts is wise for any student that has obtained more than 1 student loan and owes more than $7,500 in total. Student loan consolidation programs help you reduce the interest you are supposed to pay and help you get a fixed rate. If you have obtained private loans for students labeled as bad credit, once you consolidate all your loans your credit ratings will improve instantly.

It is always clever to compare a few offers from at least 3 different lenders before consolidating loans or applying for one.

Students in Debt: Credit Cards and Tuition Fees Might be the Cause!

Students find them in debt from various reasons. Amongst the most common reasons are student loans, tuition fees and overuse of credit cards. Interesting enough, credit card debt is rapidly built by students all over the world and the United States of America is an unfortunate leader in this problem. This article will try to explain the causes to this problem and hopefully help find proper solutions.

Why & How Do Students Rapidly Build Credit Card Debt?

Many students find them in credit card debt because of uncontrolled spending habits. Getting a diploma isn’t easy. It requires time, dedication and lots of effort. Therefore, many students can’t find time to spend setting up a proper budget. Their credit card is always available and an easy way to spend money. Time passes, requiring students to handle extra expenses such as buying food, clothes, books, personal appliances and from time to time enjoy themselves.

Due to the lack of proper financial budgeting they rapidly find themselves behind payments and in a position where they must use their credit card to live their life at the standard they are used to. This issue positions many students in debt.

Student Loans May Also Cause Debt

Credit card debts is known to be the most common problem amongst students however, many students find them in debt because of loans they have applied for in the passed. A student loan is usually granted to a student that needs money to pay for tuition fees, but can be used for any personal use. Some students, once found in credit card debt, apply for a federal or private student loan that will help pay off their credit card debt. After getting the money needed, they pay off the debt and quickly go back to the same life style, obviously finding them in debt once again.

Typical Solution: Student Loan Consolidation

Students that have obtained multiple student loans totaling $7,500 or more, have an option to consolidate them. By consolidating your student debts you can easily manage monthly payments and enjoy a fixed, often lower averaged interest rate. You can graduate knowing that everything will be fine. You have the time to find a job during grace period and slowly but surely pay back the loans.