Should I consolidate my college loans or not?

1. Still in school, yes! Rates are low, but they’re scheduled to go up. Your college loan payments will then remain as manageable as possible when you leave school. If you have graduated, or will be graduating this May or June, yes! Graduates can lock in historical low rates, and reduce their monthly payments more than half. You can lock in a rate even while still in school, and even if you have been out of school for a couple of years can get a good deal, too.

2. The newest twist in the consolidation puzzle is the “in school consolidation”, affecting students who are currently enrolled and will be enrolled past the July 1 consolidation. You can consolidate your existing college loans now to secure the low rates for at least part of their student loan portfolio.

3. Consolidating could save thousands of dollars in interest payments on college loans. There are impending student loan rate changes and new interpretation of regulations by the Department of Education, also, Congress is considering ending the fixed-rate program. Experts are urging students to consolidate to relieve themselves of a higher debt load.

4. Many students and families are looking for a simple, clear answer about whether to consolidate college loans or not. The simple answer is to take some of the bite out of the debt by loan consolidation. You could live like a miser and save as much money as possible or consolidate your federal student loans now.

5. For students still in school, you have an opportunity to choose consolidation. Consolidating would put a college loan borrower into repayment status, but the student can defer payments until after graduation by making a deferment request. Consolidating today can have payments put off until graduation.

6. The federal loan program allows consolidation, which is when a borrower pools his student debts together so that only one monthly payment is necessary, rather than several. It’s not just the convenience of one payment that is making consolidation so compelling. The most significant aspect of the program is that it allows a person to permanently lock in a lower interest rate on loans. These loans are backed by, or granted directly by, the federal government.

7. Rates for federal Stafford loans, the most prevalent type of student loan, as well as some other types of federal student loans are set annually based on the rate of 91-day U.S. Treasury bills at the end of May. The exact rate won’t be known until the end of the month, but experts say it will be about 2 percentage points higher. (Private loans and federal loans cannot be consolidated together.)

8. For the first time, the U.S. Department of Education will allow students still in school to consolidate federally backed loans. Federal PLUS loans can also be consolidated. PLUS loans are used to help pay the cost higher education.

9. Students, regardless of enrollment, should absolutely consolidate their college loans, arranged through the student’s lender. There are no fees, no credit checks, and interest rates are expected to move higher. Those are good reasons to consolidate.

10. Act quickly to put lock on current federal-aid interest rates. Graduates should act now to insulate themselves from a drastic rate change. Apply early. Do not wait until the last minute to file paperwork. Those who have already graduated or left school should not wait to investigate consolidation. In the first six months after graduation, you are in a grace period. Within that six-month window, you can lock in a low rate on Stafford loans and spread the repayment over as long as 30 years. If you’re going to consolidate, now is the best time to do it




By: Georgio Heberto

For most students who incurred various debts and loans opted for a college loan consolidation. For the most students the benefits and advantages out weights the pitfalls. Thus understanding the basics of college loan consolidation gives more options.

Few families and high-school students can afford to pay for a traditional college education without some financial aid, either in the availability of loans or scholarships. Many students who have student loans and are getting stress out with their financial management choose to take a college loan consolidation.

Students currently enrolled in high school that are looking towards the future and college, may not have the costs of their schooling in mind when considering where to apply. Student loan consolidation basically lowers the monthly payment for all the student loans taken earlier.

You can always engage remission if you make a college loan consolidation or a school loan consolidation for all your student loans. Federal Student Loans set up several benefits over private loans. Applying for financial aid or student loan consolidation can seen overwhelming, but it is really quite steady.

Stafford Loans are low interest rate loans borrowed in the students own name. There is no credit report review. Co-signers are not required. The funds for Stafford Loans are provided by private lenders and are subsidized and guaranteed by the Federal government. Generally, federal consolidation loans are easier to put than their private consolidation loan counterparts.

The Direct Federal Loan Consolidation program offers a special income-contingent option to students who permit borrowed at a heavy level. One of the advantages to a consolidation loan is that the new interest rate is a weighted average of the interest rates of the combined loans rounded to the nearest 1/8 of a percent. Even if you put already consolidated loans before, we can refinance lone loan from solitary institution. Stafford loans, PLUS loans, private loans, they are all eligible for consolidation.

Varying scholarships put varying requirements If you are going to settle upon a college loan consolidation or a school loan consolidation get hold of sure to look for the lowest rate of interest so that will not hurt you in the long run. Scholarships are provided by colleges and universities to their prospective students, as well as by private organizations, churches, insurance and mutual companies, and public service organizations. All scholarships carry fostering deadlines and minimum requirements. It is also always a good idea to find your high school counselor to check into local scholarships.

Most scholarships are based on academic merit, athletic skills, religious affiliations, gender, or ethnicity. Many students interested in obtaining assistance with future college costs, apply for specific scholarships.

The Federal Stafford Loans, available to both undergraduate and graduate students, are one of the top-notch affordable ways to pay for school. No credit check is required during the wizardry and there are no fees (in fact, the government prohibits lenders from charging fees) and no exercises verifications The improvement consists of a short federal form listing your contact answer and detailing the loans you owe, who currently holds them and what the balances and interest rates are. Anyone with qualifying federal student loans or federal parent loans is eligible for student loan consolidation.

You can apply as soon as you finish school or after your loans go into a grace or repayment period.Be aware that your current lender may view you as a captive customer and as a result may not be as motivated to offer you additional incentives to consolidate.

In order to permit a better handle on your debt burden, accept a school loan consolidation or college loan consolidation. Given the government sympathize with and subsidy, consolidation loans are very profitable for private lenders.

Being well armed with the knowledge and understanding of college loan consolidation may give you the advantage of negotiating a better deal. College loan consolidation is available to almost any student but you to apply and qualify for it.




By: Shellaine Enfesta

If you’re a parent or ex-student who took out any 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. When interest rates rise, your monthly student loan payments may also go up. If you’re on a tight budget, higher monthly payments may prove difficult to manage. Do you wish, instead, you could have a set monthly payment for your federal student loans that you know would never change? Student loan consolidation may be for you.

Federal student loan consolidation gives you the security of a fixed interest rate. By consolidating your federal parent student loans, you’ll replace your variable-rate college loans with a fixed-rate consolidation loan, so you’ll never have to worry about interest rates rising and leaving you guessing about your monthly payment amount.

Take the Hassle Out of Repaying Your Student Loans

If you have multiple college loans in repayment and you’re juggling 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 and one monthly payment that’s fixed for the life of your college loan.

Cut Monthly Payments on Your Student Loans by up to 40%

Besides offering you convenience and the security of a fixed interest rate, a student loan consolidation could also help you cut your monthly student loan payments almost in half. 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. By consolidating your college loans, your monthly payments could go down by up to 40%!

Apply in Minutes to Consolidate Your Student Loans

You can apply for your student loan consolidation in minutes, either online or with a quick phone call to NextStudent. 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 on your Federal Consolidation Loan. When you consolidate your 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.

Who’s Eligible for Student Loan Consolidation?

To be eligible to consolidate your own federal student loans, you can’t currently be enrolled in school more than half time. The student loans you’re looking to consolidate must be in repayment, in a grace period, or in an authorized deferment or forbearance period.

Your parents can consolidate the PLUS loans they took out to help you pay for school as soon as those student loans have been fully disbursed and have entered repayment, even if you’re still in school full time. Although your parents can consolidate their PLUS loans, you won’t be able to consolidate your own college loans with your parents’ loans.

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 student 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.




By: Jeff Mictabor