Online Student Loan Consolidation ~ Go. College. com. Save Money, Avoid Default. Consolidating student loans can help make what feels like a mountain of college debt much more manageable. The National Postsecondary Student Aid Survey reports that a majority of four year college graduates are carrying close to $2. Graduate students, medical students and law students are carrying much more. Consolidation loans have become common practice for both Federal and private student loan holders. A consolidation loan does more than just combine your existing loans. With a consolidation loan your existing lender or a new lender will pay off you're student loans and write a new loan to cover that total. This new loan will allow you to have one manageable monthly payment. Time to Consider Consolidation How do you know when it's time to talk to your lender about loan consolidation? If you find yourself in any of the following situations a consolidation loan might be for you: You have multiple federal and/or private student loans You have been delinquent on any monthly student loan payments You foresee large financial obligations that could put your monthly payments at risk. With a consolidated loan you can relive the stress of having a mountain of debt on your shoulders. Lenders have a stake in your financial health and they would rather rewrite your loans than see you default. Federal Loan Consolidation The Federal government offers students the Direct Consolidation Loan to help them manage their Federal college loans. Students who have received a Stafford, Perkins or FFEL loan are eligible for the Federal Direct Consolidation Loan only after they have graduated from college. Many private lenders offer attractive loan packages to make it easier for students to pay off their loans and avoid default. As these loans are underwritten by private lenders they will have higher interest rates and stricter time limits than Federal loans. Having said that, they are still a good way to reduce your monthly obligations to one manageable payments. Private lenders approve all loans on the basis of credit history and consolidation loans are no different. You may need a co- signor to qualify for a consolidation loan and you will have to be able to prove a regular income that meets the lenders requirements. Keep in mind that if you have received both private lender loans and Federal student loans you will not be able to consolidate both into one new loan. You will have to negotiate one consolidation loan for your private lender loans and one for your Federal loans. Applying for Student Loan Consolidation The application process for student loan consolidation will depend on what type of loans need to consolidate. If you have Federal Direct Loans you can apply for a Direct Consolidation Loan through the U. S. Department of Education. Remember, private consolidation loans are credit- based and there is no guarantee that all students carrying student debt will qualify. More Articles in Debt Consolidation What are the advantages of a loan workout plan? What Is a Loan Workout Plan? Simple Strategies to Get Out of Debt Debt Arbitration. CHASE LOAN CONSOLIDATION. Chase is a leading financial services institution and one you can trust when it comes to federal student loan consolidation. Government debt relief programs are limited, but options do exist. HAFA and HAMP loan modification programs can provide government sponsored mortgage relief. Myth: Debt consolidation saves interest, and you have one smaller payment. Truth: Debt consolidation is dangerous because you treat only the symptom. A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan. The result is a single monthly payment instead of. Debt Consolidation has the following advantages: A negotiation with your lenders for the reduction in interest rate and the amount outstanding. Federal Loan Consolidation. The Federal government offers students the Direct Consolidation Loan to help them manage their Federal college loans. ![]() 392 THE TAX ADVISER JUNE 2009 Individuals Exhibit: Income tax consequences of student loan forgiveness and repayment programs Student loan forgiveness. Government grants are one of the best debt relief options. Even though grants are not as popular as debt consolidation loans they are available to individuals. ![]() Consolidation programs can make all the difference to a graduate struggling to repay their student loans. ![]() ![]()
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