An Overview of College Student Loan Consolidation Programs
Posted by admin in student loan consolidation, tags: aid, college, consolidate, consolidation, curse, Debt, Education, financial, graduate, loan, Student
Due to economy uncertainties, many university and college graduates are facing difficulties to pay back their student loans when their grace period is over. To rescue this situation, the college student loan consolidation programs are offered to this group of people. These programs involve combining multiple student loans into just ONE LOAN at ONE FIXED interest rate, with ONE REPAYMENT monthly. It is indeed ideal for a person to consolidate his or her student loans when the interest rate is low during economy downturn.
Why do we need these consolidation programs?
Consolidating multiple student loans is necessary for the following purposes:
• Reduce the monthly student loan repayments
• Improve the graduates’ financial positions in the long run
• Reduce the graduates’ financial burden as they are paying a lower interest rate
• Improve the graduates’ credit rating
• Make the debt repayment process simpler
• Save more money in the long run
• Avoid the unemployed graduates from suffering financial difficulties
At the moment, federal and private student loan consolidation programs are the most popular programs in the market. Under federal consolidation program, a person is allowed to combine all his federal student loans into just one debt at a lower interest rate. No employment, collateral or cosigner requirements needed to obtain the approval. On the other hand, private loan consolidation programs are suitable for those who have non federal loans. These programs are normally offered to people who intend to lump their multiple private study loans together. The approval process is normally stricter as it is based on the credit score of the applicants.
You have to be very clear that different college student debt consolidation programs are offered to suit different individuals’ needs. Each program has its different eligibility requirements for the applicants. It is indeed important for you to do your own research thoroughly in order to decide whether it is really worthwhile for you to consolidate your student loans.
Watch the video related to college student loan consolidation
Default: The Student Loan Documentary is a feature-length documentary chronicling the stories of borrowers from different backgrounds affected by the private student lending industry and their struggles to change the system. In 2005 private student loans were exempted of ALL consumer protections. No matter when their loans were taken, many borrowers now find themselves in a paralyzing predicament of repaying two, three or multiple times the original amount borrowed, with no bankruptcy …
Help answer the question about college student loan consolidation
What are some good Student Loan Consolidation Companies?These crooks known as Sallie Mae have screwed me. Two years ago I started receiving my student loans, and the interest rate at the time was only 2%. I even have a sheet of paper stating that.
My total in loans was $42,000.
I get my statement in the mail last week and suddenly I owe them $57,000 and they jacked up my interest rate to nearly 18%. I nearly cried. I called Sallie Mae right away stating, I cannot pay $688.00 a month it is just ludicrous.
I only have a couple more weeks to find a cheap, but very respectable loan consolidation company. My sister uses Nelnet, but they haven't gotten back to me yet.
For all of you college graduates what is a cheap, but VERY respectable and honest Student Loan Consolidation company?
You can email me with details if you'd like.
Thank You.
About Author
For more information about student loan debt consolidation and federal student loan consolidation, visit GetAStudentConsolidation.com.
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- Is Student Loan Consolidation on Private Loans Really An Option?
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Hi There,
You are absolutely right… Your credit can be greatly increased immediately by consolidating…
The reason is as follows..
Picture your situation if you dont consolidate.. You have say 10 loans, all with a different monthly payment ans interest rate all of which obligate you to a minimum payment each month..
So, the way the credit bureau's see it, you have alo tof obligations each month to pay for, which gives you a high DTI or debt to income ratio…
Now, once you consolidate, it does manyu thngs… First and foremost, it comnines the multip-le loans into one large loan… The one large loan will have a SIGNIFICANTLY LOWER monthly payment which is huge in determining your credit score…
So, the answer is YES it woul have an immediate impact on your score.. It could raise it as much as 100 points depending on your credit situation…
The next question you should be asking is where to go to get the best rate for consolidation..
The thing that most people dont realize is that the Department of Education regulates and determines EVERYTHING about the consolidation process..
Every lender has the exact program to work with ther eis no difference in the type of qualifications from one lender to the next because we are all administered by the departmen tof education..
The ONLY difference BETWEEN LENDERS is the department of education chooses ALL RATE DISCOUNTS offered to students…
Currently the government only offers 3 rate discounts.. Most lenders (sallie mae, nelnet,) choose to only give 1 or 2 of the rate discounts (because they lose $$ by giving)
My company is a little different.. To set ourselves aside from the rest, we offer ALL 3 RATE DISCOUNTS TO CLIENTS..
It actually adds up to 1.85% OFF YOUR RATE FOR CONSOLIDATING…
Other lenders will only offer yo to 1-1.25% off…
I am a licensed student loan advisor with Student Aid Lending, we are a nationwide title IV lender administered by the Department of Education… I would be happy to assist you with the consolidation process..
Take a look at my yahoo 360 profile.. There is alot of helpful information there for anyone to view.. You can also find the direct link to my website..
http://360.yahoo.com/my_profile-hluduhmi...
It is actually a VERY SIMPLE process, it can be completed in 10 minutes over the phone and internet…
Feel free to call or email me at any time.. Im available at all tiem to answer any questions or concerns you may have..
I hope this helps!
Jason Fry
Student Aid Lending
1-800-964-0642 ext 114
jasonf@StudentAidLending.com
The good news is that almost anyone can consolidate their student loans, even with bad credit. The federal government sponsors a program through the department of education that allows anyone to consolidate their federally backed student loans (most typically, they are Stafford Student Loans but could also be PLUS Loans or Perkins Loans) and approval is not credit based by traditional underwriting standards — the key is that you cannot be behind or have missed payments. You also must have graduated and you can only consolidate student loans once (typically) in the term of the loans. The exception to this last rule is that if you take on news loans, then you can consolidate again.
The benefit of consolidating your student loans is that you can lock in a low fixed rate while at the same time extending the duration of the pay-back on the student loans to 30 years… which could cut your monthly payment in half.
If you want to compare rates and terms to consolidate your student loans, you can get matched with several of Bills.com's pre-screened lenders, by applying here: https://www.bills.com/studentloan/loan/
To learn more about student loans, I encourage your to visit the Bills.com Student Loans Information page at http://www.bills.com/student-loans
you can try consolidating them through US dept of education’s direct loan program. they’ll buy it all out and you pay only 1 loan with a renewed lower interest. and you get your credit cleaned up.
private message me. i can teach you how to eliminate MOST of your debts. and/or rehabilitate a student loan gone bad.
All of my student loans were through Citibank initially, and last year I consolidated through them. They gave me a 5% interest rate which I think is very reasonable. They have also been very helpful on the phone when I had questions and they have never adjusted my interest rates without informing me first. Their website is http://www.studentloan.com and I would recommend them highly.