Many students who exit college often have some form of student loan debt. It’s becoming more common, however, for college graduate to have multiple student loans that must be repaid in the months after they graduate due to the rising cost of attending a university or college.
It’s for this reason that many students will seek a student loan consolidation in order to make their multiple student loans more affordable when payments began to come due a few months after they graduate. While there are people who are against consolidating debt and any student that may have only two or three loans might not benefit from a student consolidation, there are benefits of seeking a consolidation loan for student debt.
Keep in mind that there are certain types of student loans that will not consolidate so it will be important to look at the type of loans you have and be sure that they will consolidate, otherwise you may not benefit from consolidating. Keeping student loans separate can be more affordable in the long run because even with multiple interest rates there is a smaller principle amount on which interest is charged.
However, anyone with multiple student loans may benefit from consolidating simply because federal student debt consolidation loans often come with a low interest rate. These types of consolidation loans can be more affordable, but any student who gets a student loan consolidation needs to make sure that they do all they can to pay off their consolidation loan as quickly as possible.
Paying the minimum monthly amount can be affordable but it can also cost more over the life of the repayment loan. It will be in a college graduate’s best interest to pay as much as they can each month in order to get out of debt faster. A consolidation loan doesn’t have to cost much more over the long run, as long as you make sure you’re paying as much as you possibly can from month-to-month.
If you are having trouble repaying student loans it’s probably not a bad idea to talk to your student loan lender about various options that range from student loan consolidations to income-based repayment plans. College debt is often necessary but it doesn’t have to follow you around for years after you exit college.
Source
Thursday, July 15, 2010
Student Loans Consolidation, Does it Make Sense?
Student loans consolidation is a process by which you can group or consolidate more than one student loan into a single loan. This has become almost essential if you have several school loans that you are paying on to different creditors. It can save you time and money.
If you are someone who has several outstanding college loans that you are paying on, you know what this means. Keeping track of and paying these loans on time can be frustrating and it can be costing you money in added interest.
In general by consolidating loans you will reduce your monthly student loan payment and quite possibly your total interest amount as well. There are private lender student loans consolidation lenders and also federal programs for student loans consolidation that you can choose from.
Any one is eligible for a consolidation loan, but those with a low credit score will have a harder time getting approved through private lenders. The federal programs then would be the place to apply for those with bad credit below 660.The Federal Family Education Loan Program or “FFELP” says that all student loans lenders must have the same offering rate. Your rate of interest however is determined by your own credit rating.
Do your due diligence when looking for a lender for your school loan consolidation provider. There are many out there and they have varying programs with discount incentives and benefits. Read the fine print, often this will reveal information about somewhat hidden fees etc.
Is getting your student loans consolidated a smart move? That is for you to decide of course, but the programs are out there and many are taking advantage of the opportunity.
Source
If you are someone who has several outstanding college loans that you are paying on, you know what this means. Keeping track of and paying these loans on time can be frustrating and it can be costing you money in added interest.
In general by consolidating loans you will reduce your monthly student loan payment and quite possibly your total interest amount as well. There are private lender student loans consolidation lenders and also federal programs for student loans consolidation that you can choose from.
Any one is eligible for a consolidation loan, but those with a low credit score will have a harder time getting approved through private lenders. The federal programs then would be the place to apply for those with bad credit below 660.The Federal Family Education Loan Program or “FFELP” says that all student loans lenders must have the same offering rate. Your rate of interest however is determined by your own credit rating.
Do your due diligence when looking for a lender for your school loan consolidation provider. There are many out there and they have varying programs with discount incentives and benefits. Read the fine print, often this will reveal information about somewhat hidden fees etc.
Is getting your student loans consolidated a smart move? That is for you to decide of course, but the programs are out there and many are taking advantage of the opportunity.
Source
Monday, June 28, 2010
Low Interest Consolidation Loans For Student Loan Debt–Who Benefits In Consolidating College Loans?
Student loan debt is often unavoidable for many college students as the cost of attending a university is increasing. For many, scholarships and grants may not meet all of the financial needs of today’s college student, so it’s for this reason many students leave college with some form of student loan debt.
After college, graduates with student loan debt will sometimes turn to a low interest student loan consolidation in order to better manage their college debt. Pooling all of your student loans into one area can make them easier to handle and will lower the risk of missing a student loan payment or allowing multiple student loan payments to become overwhelming.
However, there are many instances where student loan consolidation may not be the best route in dealing with student loan debt. Students with various forms of loans, like private loans and federal loans or subsidized and unsubsidized loans, will not be able to consolidate these types of loans and would therefore not benefit from a student loan consolidation.
Also, students with a small amount of debt or very few student loans may be better off paying them separately. Consolidating student loans, even at a low interest rate, can cost more over the repayment lifetime of debt consolidation loan due to the large amount of principal on which interest can accrue.
College graduates who may be considering a low interest student loan consolidation may want to sit down and figure out how much it would cost them to repay their student loans separately versus using a student loan consolidation. When interest is factored in, college graduates may find that paying on their debt separately will be more financially beneficial than a student loan consolidation
Source
After college, graduates with student loan debt will sometimes turn to a low interest student loan consolidation in order to better manage their college debt. Pooling all of your student loans into one area can make them easier to handle and will lower the risk of missing a student loan payment or allowing multiple student loan payments to become overwhelming.
However, there are many instances where student loan consolidation may not be the best route in dealing with student loan debt. Students with various forms of loans, like private loans and federal loans or subsidized and unsubsidized loans, will not be able to consolidate these types of loans and would therefore not benefit from a student loan consolidation.
Also, students with a small amount of debt or very few student loans may be better off paying them separately. Consolidating student loans, even at a low interest rate, can cost more over the repayment lifetime of debt consolidation loan due to the large amount of principal on which interest can accrue.
College graduates who may be considering a low interest student loan consolidation may want to sit down and figure out how much it would cost them to repay their student loans separately versus using a student loan consolidation. When interest is factored in, college graduates may find that paying on their debt separately will be more financially beneficial than a student loan consolidation
Source
Sunday, November 15, 2009
New Rules Governing Credit Terms Go Into Effect This Month
They call or drop by her credit-counseling office in a steady stream.
They are distraught. Collectors are dogging them, and they desperately need help to consolidate and pay off their bills.
While their problems might have lots of causes — maybe they’re suffering under a subprime home loan — credit-card debt is often part of the mix, according to Barbara Mascarin, operations director for the nonprofit American Financial Solutions.
She is hoping new credit-card consumer protection rules help. They were signed by President Obama in May and go into effect this month through February 2010.
“I think that people maybe will not get into so much trouble,” Mascarin said. Her staff of about two dozen often set up debt management plans for clients, and within three to five years, many clients are back on track.
Under the new protections, consumers will have to be more than 60 days behind on payments before credit-card companies can raise interest rates on balances. And, credit-card companies will have to revert to previous, lower rates if consumers pay minimum balances on time for six months.
Credit-card companies also have to give 45 days’ notice and an explanation to consumers before they change their rates.
The rules also will make it much harder for credit-card companies to issue cards to people younger than 21. Soon, applicants younger than 21 will have to prove they have the ability to pay off debt, or a parent will need to co-sign.
“If you’re a student, it will be hard to get a credit card,” said Mascarin, whose own daughter was heavily solicited by credit-card companies while a student at the University of Washington. She later canceled cards she realized she didn’t need or want.
Credit-card companies are changing terms on millions of credit card accounts before the law takes effect, according to the Los Angeles Times. At least two are changing fixed rates to variable rates.
“The credit card companies are trying to find their way around it,” Mascarin said.
But they’ve also taken steps to help firms like American Financial Solutions assist more people. This spring, the nation’s 10 largest credit-card companies agreed to provide more affordable debt management plans and hardship programs for consumers.
“These new concessions are really making a big difference,” she said.
Those who come to her office have an average card debt of $13,000. Usually it’s some big life change — a job loss, divorce or death of a spouse — that has caused them to pull out the cards and start using them for daily expenses like groceries. One man that American Financial Solutions helped had gone through a divorce and charged up $90,000 in card debt, she said.
“One of the biggest things is medical problems,” Mascarin said.
On average, they have eight credit cards, including some from the big companies and a smattering of retail cards.
The immediate advice they get is to put down the cards.
Her firm works with credit-card companies to lower rates, cut penalty fees and buy time for the consumer neck-deep in debt.
Not everyone can be helped. For those who can’t, the next step is bankruptcy. That path has become so common in this recession that American Financial Solutions began pre-bankruptcy counseling for clients in February. About 70 troubled clients get it a month.
But those who can be helped get a heavy dose of financial literacy, through counseling, classes and learning materials. The Bremerton-based company currently has 25,000 clients around Puget Sound and throughout the nation.
Mascarin wishes financial literacy were taught in schools, long before her clients got to this point.
“If you have to take a class on your state history, good grief, you should have to take a class in managing your money,” she said.
But if that’s not going to happen right away, it’s up to parents to teach the kids, she said. If you do a family budget, show them how. Show them how you balance your checking account. And explain credit cards to them, and how to use them.
But for those who cards helped get them into trouble, there may be help.
“It’s not the end of the world,” Mascarin said.
Source
They are distraught. Collectors are dogging them, and they desperately need help to consolidate and pay off their bills.
While their problems might have lots of causes — maybe they’re suffering under a subprime home loan — credit-card debt is often part of the mix, according to Barbara Mascarin, operations director for the nonprofit American Financial Solutions.
She is hoping new credit-card consumer protection rules help. They were signed by President Obama in May and go into effect this month through February 2010.
“I think that people maybe will not get into so much trouble,” Mascarin said. Her staff of about two dozen often set up debt management plans for clients, and within three to five years, many clients are back on track.
Under the new protections, consumers will have to be more than 60 days behind on payments before credit-card companies can raise interest rates on balances. And, credit-card companies will have to revert to previous, lower rates if consumers pay minimum balances on time for six months.
Credit-card companies also have to give 45 days’ notice and an explanation to consumers before they change their rates.
The rules also will make it much harder for credit-card companies to issue cards to people younger than 21. Soon, applicants younger than 21 will have to prove they have the ability to pay off debt, or a parent will need to co-sign.
“If you’re a student, it will be hard to get a credit card,” said Mascarin, whose own daughter was heavily solicited by credit-card companies while a student at the University of Washington. She later canceled cards she realized she didn’t need or want.
Credit-card companies are changing terms on millions of credit card accounts before the law takes effect, according to the Los Angeles Times. At least two are changing fixed rates to variable rates.
“The credit card companies are trying to find their way around it,” Mascarin said.
But they’ve also taken steps to help firms like American Financial Solutions assist more people. This spring, the nation’s 10 largest credit-card companies agreed to provide more affordable debt management plans and hardship programs for consumers.
“These new concessions are really making a big difference,” she said.
Those who come to her office have an average card debt of $13,000. Usually it’s some big life change — a job loss, divorce or death of a spouse — that has caused them to pull out the cards and start using them for daily expenses like groceries. One man that American Financial Solutions helped had gone through a divorce and charged up $90,000 in card debt, she said.
“One of the biggest things is medical problems,” Mascarin said.
On average, they have eight credit cards, including some from the big companies and a smattering of retail cards.
The immediate advice they get is to put down the cards.
Her firm works with credit-card companies to lower rates, cut penalty fees and buy time for the consumer neck-deep in debt.
Not everyone can be helped. For those who can’t, the next step is bankruptcy. That path has become so common in this recession that American Financial Solutions began pre-bankruptcy counseling for clients in February. About 70 troubled clients get it a month.
But those who can be helped get a heavy dose of financial literacy, through counseling, classes and learning materials. The Bremerton-based company currently has 25,000 clients around Puget Sound and throughout the nation.
Mascarin wishes financial literacy were taught in schools, long before her clients got to this point.
“If you have to take a class on your state history, good grief, you should have to take a class in managing your money,” she said.
But if that’s not going to happen right away, it’s up to parents to teach the kids, she said. If you do a family budget, show them how. Show them how you balance your checking account. And explain credit cards to them, and how to use them.
But for those who cards helped get them into trouble, there may be help.
“It’s not the end of the world,” Mascarin said.
Source
Wednesday, October 28, 2009
Sacramento Attorney Sued for Student Loan Default
SACRAMENTO, CA - A Sacramento attorney who hasn't made a payment on her student loan in over a decade is being sued by the federal government for more than $150,000.
According to a civil suit filed Tuesday in U.S. District Court, Robbin Michelle Coker consolidated multiple student loans in 1996 with a single federally-guaranteed loan of $60,466. The complaint indicates Coker stopped making payments on the new loan 18 months later.
The U.S. Department of Education reimbursed the lender for the defaulted loan and is trying to collect a total of $138,212.23, which includes the original loan amount plus interest which continues accruing at $17.25 per day.
The U.S. Attorney, which filed the suit, is seeking an additional 10 percent "debt surcharge" authorized by federal law.
Federal court records indicate Coker specializes in personal bankruptcies. With few exceptions, student loans cannot be discharged in a bankruptcy.
According to an online directory of attorneys, Coker was licensed to practice law in 1995 following graduation from McGeorge School of Law.
Source
According to a civil suit filed Tuesday in U.S. District Court, Robbin Michelle Coker consolidated multiple student loans in 1996 with a single federally-guaranteed loan of $60,466. The complaint indicates Coker stopped making payments on the new loan 18 months later.
The U.S. Department of Education reimbursed the lender for the defaulted loan and is trying to collect a total of $138,212.23, which includes the original loan amount plus interest which continues accruing at $17.25 per day.
The U.S. Attorney, which filed the suit, is seeking an additional 10 percent "debt surcharge" authorized by federal law.
Federal court records indicate Coker specializes in personal bankruptcies. With few exceptions, student loans cannot be discharged in a bankruptcy.
According to an online directory of attorneys, Coker was licensed to practice law in 1995 following graduation from McGeorge School of Law.
Source
Thursday, October 15, 2009
Bad Credit Consolidation - Can It Help You Get Out of Debt?
Bad credit consolidation is a financial tactic that can help you lower the amount of your bills as well as lowering your interest rate. If you have several types of debt including credit cards, car loans, student loans and personal loans, consolidating them all into one payment may be the best way to go for you. Not only will you save money, but you will only have to make one payment a month. No more worrying about the bills be paid on time.
Every single day we notice companies advertising for these types of services. On the Internet and on television we see ads that offer you a lower interest rate and one payment a month for all of your bills. The one good thing about the bad economy is that these companies are doing what it takes to help you out! It is a win-win situation for you and the company. The company makes money off the consolidation and you save money by having a lower interest rate and making one payment.
Almost all of the advertisements offer an 800 number to call and speak to a representative. Even if you do not want to give away all your personal information, it might still be a good idea and call just to see what types of offers they can give you. There are MANY different companies that do this, so please do not feel like you have to work with the first company that you talk to. Now get out there and save some money by consolidating your debt.
Source
Every single day we notice companies advertising for these types of services. On the Internet and on television we see ads that offer you a lower interest rate and one payment a month for all of your bills. The one good thing about the bad economy is that these companies are doing what it takes to help you out! It is a win-win situation for you and the company. The company makes money off the consolidation and you save money by having a lower interest rate and making one payment.
Almost all of the advertisements offer an 800 number to call and speak to a representative. Even if you do not want to give away all your personal information, it might still be a good idea and call just to see what types of offers they can give you. There are MANY different companies that do this, so please do not feel like you have to work with the first company that you talk to. Now get out there and save some money by consolidating your debt.
Source
Monday, September 28, 2009
A borrower's look at using Lending Club to consolidate debt
Peer-to-Peer lending is everywhere these days. You can start a business, get student loans and consolidate high interest debt. Still, borrowing money from your peers is a new experience for most of us, and for many people new things are daunting -- which makes this borrower's look at peer-to peer-lending by Matt Jabs at Debt Free Adventure all incredibly useful.
After the interest on three of his credit cards jumped, "due to bad economy", he looked into LendingClub.com to consolidate his high-interest debt into a lower fixed-term loan. But he didn't just consider the interest rates and say to himself, hmm, I'll chase that lower rate and who cares about the fees! Instead he compared the total cost and by doing so saved himself over $500. His story covers the details of his process, including his interest rate savings, 10% on one card. You'll also find links to help you figure out if you can save by consolidating to a lower rate loan the same way he did.
For me one of the biggest benefits to switching to a Lending Club peer-to peer-loan which was not covered in Jabs' article is that it is a fixed-length loan. While credit card debt can drag out year after year, a Lending Club loan gives you a specific payoff date. Having an end in sight can be a huge motivator to tackling your debt. I also like that you can't add to this debt over time and that there is no prepayment penalty.
While I have not personally used Lending Club or a peer-to-peer lender, this type of information,is leading me to look at a peer-to-peer solution to consolidate my current credit card debt when my promotional 0% rate expires.
Source
After the interest on three of his credit cards jumped, "due to bad economy", he looked into LendingClub.com to consolidate his high-interest debt into a lower fixed-term loan. But he didn't just consider the interest rates and say to himself, hmm, I'll chase that lower rate and who cares about the fees! Instead he compared the total cost and by doing so saved himself over $500. His story covers the details of his process, including his interest rate savings, 10% on one card. You'll also find links to help you figure out if you can save by consolidating to a lower rate loan the same way he did.
For me one of the biggest benefits to switching to a Lending Club peer-to peer-loan which was not covered in Jabs' article is that it is a fixed-length loan. While credit card debt can drag out year after year, a Lending Club loan gives you a specific payoff date. Having an end in sight can be a huge motivator to tackling your debt. I also like that you can't add to this debt over time and that there is no prepayment penalty.
While I have not personally used Lending Club or a peer-to-peer lender, this type of information,is leading me to look at a peer-to-peer solution to consolidate my current credit card debt when my promotional 0% rate expires.
Source
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