Student Loans: Cut Monthly Payments on your Student Loans by Up to 42%
If you’re a graduate or college parent with any outstanding federal student loans, you may be able to lower your monthly student loan payments by up to 42% just by consolidating your parent or student loans. When you consolidate your college loans, you may be able to extend the repayment term on your parent or student loans by up to 20 years. With that longer repayment term, since you have more time to repay, the amount you have to pay each month will typically go down.
NextStudent, a leading Phoenix-based education funding company, offers a student loan consolidation program with no application fees, no processing fees, and no credit checks. By consolidating your parent or student loans, your monthly payments could go down by up to 42%.
Here’s an example: Estimated monthly payments on a $75,000 NextStudent Federal Consolidation Loan fixed at 7.25% and repaid over an extended term of 30 years are $512, versus estimated monthly payments of $879 on a $75,000 Federal Stafford Loan issued at 7.22% and repaid over 10 years — a 41.8% reduction in monthly payment amount. (Your actual payment reduction may vary and will depend on the terms of the student loans you’re consolidating.)
Replace Your Variable-Rate Student Loans With One Fixed-Rate Student Loan Consolidation
If you took out your Federal PLUS Loans or Stafford Loans prior to July 1, 2006, those student loans are subject to variable interest rates that will adjust every year. So when interest rates rise, your monthly student loan payments may also go up. Student loan consolidation puts an end to rate increases and rising payments.
NextStudent’s student loan consolidation program gives you the security of a fixed interest rate. By consolidating your federal college loans with NextStudent, you’ll replace your variable-rate college loans with a fixed-rate student loan consolidation loan and lock in your new monthly payments, so you’ll never have to worry about interest rates rising and leaving you guessing about your monthly payment amount.
Make Repaying Your Student Loans Convenient and Hassle-Free with Student Loan Consolidation
If you have multiple college loans in repayment and you’re dealing with the hassle of multiple bills, multiple due dates, and multiple monthly payments to multiple lenders, a student loan consolidation could help make your repayment easier to manage.
With a student loan consolidation program, you can bundle all your eligible federal parent or student loans into one single consolidation loan with just one monthly bill, one lender, and one monthly payment that’s fixed for the life of your student loan consolidation.
Apply in Minutes to Consolidate Your Student Loans
Typically, you can apply for a student loan consolidation in minutes. Just visit an online student loan consolidation lender or make a quick phone call to the lender of your choice. It’s fast, easy, and free to apply, and there are NO fees, NO credit checks, and NO co-signers required.
There are also no prepayment penalties. When you consolidate your federal parent or student loans with NextStudent, you’ll never be charged extra for paying more than the minimum each month or for paying off your student loan consolidation early.
Student Loan Consolidation for Private Student Loans
If you have private student loans in addition to (or instead of) your federal student loans, you won’t be able to consolidate your private student loans under the federal student loan consolidation program. But you may be eligible to consolidate your private loans separately with a Private Consolidation Loan, which offers the same convenience of a single consolidated loan for your private student loans.
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.
Watch the video related to student loans
By carefully choosing student loans, grants, and scholarships as part of your entire college financial aid package, you can avoid going into heavy college debt. Kimberly Palmer, senior editor for US News, discusses financial aid tips to help in paying for college and minimizing student debt and the differences between private loans and federal college loans. For more college financial aid advice go to www.usnews.com
Help answer the question about student loans
What Loan company will take over my federal student loans when the loans are in forbearance?What Loan company will take over my federal student loans when the loans are in forbearance so I can go back to school?
My loans are government loans from Saillie Mae. I owe them under $5000.
I heard about this company that will take over your school loans from them but I don't know the name of the company.
About Author
Jeff Mictabor is an enthusiast on the topic of student loan issues in the news. He has been writing for the past 10 years for a variety of education publications. He now offers his writing services on a freelance basis.
Tagged with: Aid • college • consolidate • Consolidation • curse • Debt • education • Financial • graduate • loan • student
Filed under: Student Loans
Like this post? Subscribe to my RSS feed and get loads more!
18 comments
To get a student loan, your first step is to fill out the Free Application for Federal Student Aid (FAFSA). You should submit your FAFSA as soon as possible – you can make estimates and correct the details later.
Once you’ve completed your FAFSA, you’ll want to visit your school’s student aid office. Ask what kind of aid you might expect.
Try this site
http://free-college-information-usa.blogspot.com/
Free College information on financial aid for students, scholarship, student loans and more.
Espcially having a history degree with a job working as a barista, and set back with 40,000 dollars! I laugh because I worked as a security guard and graduated debt free, and even had a savings. After 1 year out, I now have 50,000 sitting in my bank account
Nope, unless they take you to court and your bank received a subpoena from them.
This is exactly the reason why Im doing pre-med/pre-pharm.
So I won’t have to worry about bullcrap.
With 20 years experience in the mortgage business, I have never seen a student loan that was in repayment treated any differently than any other long term debt. While you may be able to ask for a hardship deferal in the future, which is the only advantage on a student loan that doesn't exist on a standard installment loan, no lender wants to anticipate that circumstance. As long as the payments extend past 10 months in the future, the lender will only use your monthly payment as part of your qualifying ratios. The total debt is not that important and would only be a minor factor. What will matter more is your payment history on the student loan: it should be perfect. It all comes down to the quality of your credit history (your FICO score) and your qualifying ratios of debt/income.
Try this site
http://free-college-information-usa.blogspot.com/
Free College information on financial aid for students, scholarship, student loans and more.
No one will "take over" your loans. You will still owe the money to your lender when you are in forbearance. They will simply add interest every month while you are making payments.
If you are asking about defaulting the lender will just contract out with a collection agency to start calling and hounding you to mail them payments. If you make 6 to 12 months worth of willing and reasonable payments you can ask your lender to "rehabilitate" your loan. This is when you are issued a new loan and pay off the one in default so you can get federal fin aid again. Again, rehabilitation can only be done after you have made 6 to 12 months of payments.
Those adds can be misleading… Please don’t borrow $40,000 a year for college! If you borrow that much you will be in well over 100K of debt when they hand you your diploma.
The last 3 tips are the great. The most important one though is number 2… don’t over borrow! Borrow what you need to live your life and that’s it - it will only hurt you later.
That is a question they should be able to answer for you. Is it possible there was a class action suit? Or included in bankruptcy? Contact them and find out.
n
National Academy of American Scholars sponsors the NAAS National Awards; $250 to $25,000.00
j:
As long as you remain a full-time student, you will continue to qualify for "in-school deferment". You won't have to begin paying your loans back until you finish law school.
The only requirement is that you remain registered at least half-time at an eligible institution, and that you don't take more than 6 months off at any time during your schooling.
By the way - this is an automatic feature of government-backed student loans (Stafford/Perkins/PLUS), but it is not necessarily characteristic of all private loans. Also remember that the in-school deferment requires attendance at an "eligible" school. Some students have pursued law or medical degrees at foreign universities, only to discover that some of these schools are not participants in the Federal Student Aid program, and therefore, ineligible for in-school deferment.
I hope that helps - good luck to you!
JUST SAY NO!! ESPECIALLY MOHELA!! JUST SAY NO!! Go to school for free… A degree means nothing now a days!! I have 2!! and almost went for 3 and NOW I HAVE NO JOB AND HAVE STARTED MY OWN BUSINESS!! MOST MILLIONAIRES DO NOT HAVE DEGREES!!
When your federal educational loans are in default, you have several options:
You can repay the loan in full.
You can negotiate a new payment plan with your lender.
You can "rehabilitate" your loan.
You can consolidate your loan.
Obviously option one is rarely attractive or possible for defaulted borrowers.
Option two (renegotiate) should be investigated fully - most borrowers skip this step, but it's probably the best option for most people. Call your lender and ask to speak to someone in the "Workout" Department. Explain your situation to them (there's nothing unusual about it) and ask what options are available to you for switching to a graduated, extended or income-sensitive repayment plan. If your lender will agree to change your repayment plan, a few regular payments will get your default status removed, and the new plan may be easier for you to keep up with.
Option three (rehabilitation) is really a specific form of a workout agreement. It probably won't help you much in your situation, because it requires an agreement between you and the lender that will allow you to make 9 consecutive on-time payments of some agreed-upon amount.
Option four is everyone's favorite, but you must absolutely understand what a consolidation loan will do. To keep this utterly simple - a consolidation loan is a brand new loan that will pay off your old, defaulted loan. A consolidation loan MAY lower your monthly payments, but understand how this works. A consolidation loan never lowers your payments by wiping away some of your debt - a consolidation loan lowers your payments by stretching out the length of your loan. If you pay less every month, you'll make many additional monthly payments, and - in the end - you'll pay far more back than you would have paid on the original loan.
As an example: Suppose I lent you $100 and you agreed to pay me back in 2 weeks by paying me $50 a week. You came back a few days later and explained that you weren't going to be able to afford to pay me $50 - is there something else we could do? "Oh, absolutely," I'd say, gallantly. "Instead of paying me $50 a week for 2 weeks, how about if you only pay me $10 a week for 17 weeks?"
See - in the end, you'll pay me back $170 instead of $100 - that's how a consolidation loan works. But remember - we're not talking a $100 loan for a couple of weeks - by the time you pay that $5000 loan of yours back over many years, you'll pay a few thousand more than you might have paid if you didn't consolidate that loan.
I've attached some information about consolidating from the Department of Education - take a few minutes to read it over. If you do choose to go this route, be sure to consolidate with a reputable lender (or directly with the government) and not with some fly-by-night operation that you learn about from some pay-per-click site shilled on Yahoo! Answers.
Good luck to you!
No, you can only deduct the interest when you actually pay it, not when it accrues
It seems like everyone who answers on this subject just refer you to a website. Here's my knowledge so far on my son's student loan… He just got accepted for his first fiscal year in school and the fine print states that if you pay $1000 when your payment is only $250 (example), then your next payment wouldn't be due until after those other payments are paid from what was left of the $1000, meaning, you have an extra three months of payments paid from that money before you had to pay again. Make sense? But no matter if you overpay or pay monthly, you do need to make sure you pay on time, or it could affect your credit rating. I'm not sure what you're saying on your second part, but all loans have a minimum payment due each month, if that's what you're talking about. So what it comes down to is that you can always pay more than what you owe. No bank will turn down money early.
kewl..im gonna try tat
Financial award? grant package? marketing words!! call it what is - a financial setback, a debt burden.
Are you serious DrBones666? I’m a sophomore taking out my second amount of loans and already I’m bugging out about it.
kewl