Obtaining A Consolidation Loan
Obtaining a Consolidation Loan
For a FFEL Consolidation Loan, contact the consolidation department of a participating lender for an application or more information. (Your parents should do the same thing if they want to apply for a FFEL PLUS Consolidation Loan.)
For Direct Loans, you (and your parents, for a Direct PLUS Consolidation Loan) can contact the Direct Loan Origination Centers Consolidation Department at the Web site given above.
Note that if your parents want to apply for a FFEL PLUS Consolidation Loan, no credit checks are required. If they want to apply for a Direct PLUS Consolidation Loan, they are subject to a check for adverse credit history.
Private Loans - Student Financial Aid
This will vary on the individual company and the type of consolidation loan that you wish to apply for, some companies do promise that if all paperwork has been filled in correctly and everything checks out then you could have the money in a few days.
Companies suggest that you read through the full application thoroughly and be certain of what information is required before filling anything in.
Now is the Time to Consolidate Your Student Loans
By Marjorie Salada
Time is of the essence when it comes to college student loan consolidation. Effective July 1, 2006 the federal student loan program will experience a 1.84% interest rate increase, making it one of the largest increases in the program's history.
With the announcement of the student loan interest rate increase being less than 30 days old, students are hurrying to get the best school loan consolidation deals available. There are several companies who are in the business of consolidating student loans for recent college graduates.
Due to the student loan interest rate increase being so significant, the Department of Education is allowing student loans to be consolidated while the student is still in school. Current students will find the in-school interest rate as low as 2.5%, but is more likely to be around 4.5%. After July 1, the in-school interest rate could exceed 7%.
Although the student will be giving up their six month grace period, they will not be responsible for making payments on the consolidated school loan until after they graduate. Even though there will be no six month grace period, the student still benefits by saving hundreds and maybe even thousands of dollars in interest payments on their consolidated student loans.
Likewise, if you will be taking out a student loan you will also see an increase in student loan interest rates. After July 1, 2006 Stafford loans will increase to 6.8% and PLUS loans will go to 8.5%. The interest rates on both of these types of student loans are fixed interest rates.
These are some of the benefits of consolidating your student loans:
Potential savings of hundreds of dollars in interest payments over the loan period by locking in a low, fixed interest rate
The convenience of making one monthly payment to one lender
Lower payments due to the loans being consolidated and the repayment period being extended
Most lenders will lower your interest rate after 36 months of on-time payments
No prepayment penalties
Interest paid on student loans, in most cases, is tax deductible
Overall benefit to your credit rating, due to have one loan with one lender, instead of several loans.
Even if you are not able to make the July, 1 2006 deadline, it is still to your benefit to consolidate your student loans. You will get a fixed interest rate and one payment. For me, the convenience of having only one monthly payment made college student loan consolidation worth it.
Marjorie Salada is the owner of school loan consolidation, a website that contains information and resources for consolidating your student loans.
Alternative Student Loans For Bad Credit Can Make The Difference
By Martin Haworth
There are ways to borrow money, whoever you are and whatever your circumstances. A poor credit rating nowadays means for little, except you might have to pay more.
There are a number of places to source your alternative student loans for bad credit. More and more students are finding difficulty as the number of students increases.
As poorer students join the throng of swelling numbers, some are likely to suffer from worse credit than the average student historically.
The problem is that many new college entrants have poor credit histories, just because they are young and haven't entered the market fully. Using just their home address might even worsen their right to a loan, because their parents might have a poor history themselves.
In many instances students entering college has no credit history due to their age and their parents are applying for the loan. If the parents have a bad credit history the student may be refused entry to school due to a lack of funding sources. Clearly, in those cases, their parents would be less likely to be able to fund their child themselves.
In these cases, students will need to find out sources for alternative student loans for bad credit, and will end up paying higher interest rates. In many cases such loans have different and more challenging repayment schedules, often starting with immediate effect, rather than a more typical deferred period.
One option would be to take the more expensive alternative student loans for bad credit and then reschedule the loan at the end of the course with a student loan consolidator.
Much more favorable terms will then be perfectly possible, though a student with an alternative student loans for bad credit may still bear the penalty of higher interest rates.
You see, student loans were generally recognized as an unsecured debt in the past, which meant that the usual lenders were rather careful about lending. Nowadays though, with, government backing there are many more sources of alternative student loans for bad credit than ever before.
A student loan is considered a financial contract and when a borrower is found in default, the lender then has the option of garnishing wages and the tax refunds from federal refunds and from most states.
The previous high rate of student loan default has led to tighter credit controls on these loans and created a larger and more sustainable market for alternative student loans for bad credit.
If the borrower begins to pay off the loan early and makes regular payments, it may be possible to seek an alternative funding source to rewrite the loan to pay off the higher interest rate note and have lower payments for the life of the agreement.
(c) 2007 Best Student Loan Guide. Products, services and step-by-step guidance to help you make the best decisions you can. Checkout Martin Haworth's website for all you need at http://www.Best-Student-Loan-Guide.com
Other Loan Consolidation Article Snippets:
What You Should Know About Direct Loan Consolidation Programs
"There is sufficient information on the Internet if you choose to search for it."
What Is A School Loan Consolidation Program
"In other words, the credit debt consolidation loan will become the only loan you owe, and the monthly repayments will be as affordable as possible leaving you with enough spare income to manage your monthly expenses comfortably."
Consolidation Loan Eligibility Rules
"It is very likely that you will not agree with it, keeping in consideration that America is the paradise of all the worlds financial dreams coming true."
Is A College Student Loan Consolidation Worthwhile
"Keep in mind that with the student loan consolidation program, the rejection rates are very high if your credit rating is poor."