College Loan Consolidation - What to Know Before You Refinance or Consolidate

By Lynn Haehl

There are many advantages to a student loan consolidation or refinance. College graduates typically receive funds from multiple lenders, which can mean more than one monthly statement. In addition, some graduates have loans with variable rates, which can increase or decrease according to the current market rate. A college loan consolidation is the perfect way to simplify your finances. With this option, you receive one monthly statement and deal with one lender. However, to benefit the most from a consolidation or refinance, make sure you know how they work.

What is a Student Loan Consolidation or Refinance?

The ultimate goal of a college loan consolidation or refinance is to reduce your monthly debt payments. On average, graduates are only given a grace period of six months. It can be difficult to find a good paying job within six months. What's more, it can be hard to afford a high student loan payment. With a consolidation or refinance, graduates can combine all their student loans into one new loan and receive a lower rate. The monthly payment on the combined principal is normally less.

Why Consolidate or Refinance a College Loan?

Graduates consolidate or refinance their student loans for three major reasons. One, they want to lock in a low interest rate. Since a majority of student loans have a variable rate, monthly payments can rise or fall with every rate adjustment. On the other hand, fixed-rate student loans are predictable and the payments remain the same. The second reason is to simplify finances. It is easier to manage one student loan payment as opposed to two or three. Lastly, consolidations and refinances offer several repayment options, which help keep payment lows. Choose a standard payoff time of 10 years, or extend the loan to 30 years.

What to Know Before a Consolidation or Refinance

Although a college loan consolidation offers lower payments and extended loan terms, these options increase the overall costs because you'll pay additional interest. Making a few extra payments throughout the year, or paying a little more on the principal each month will help reduce the total interest cost.

Another drawback with a student loan consolidation or refinance is that you might lose your grace period. Federal Direct Consolidations uphold a grace period. Other consolidated loan programs such as Stafford do not offer a grace period. If you need a grace period, do some research before applying for a consolidation or refinance.

Save up to $100's monthly by using one of our Recommended School Loan Consolidators Online. We maintain recommendations for both private and federally funded consolidators. Article Source: http://EzineArticles.com/?expert=Lynn_Haehl

College Loan Consolidation - What You Need To Know

By Rob Hickey

The rise in demand for college loan consolidation services is directly related to the costs involved with getting a college or university degree. Fueling the demand is the increasing cost of private institutions in the United States. Whether it’s for graduate school or to study abroad, students are accruing massive debts beyond what was reasonable years ago. The gap is widening between the cost of obtaining a degree and the financial aid given to assist those in need of funds. Today’s graduating students are faced with a vicious cycle of borrowing more in order to pay college tuition. College loan consolidation can ease the burden after graduation by setting up a program to help manage your college debt.

College loan consolidation is a service that allows students to reduce the amount of their monthly installments in order to repay their student loans. This is done through one combined loan with an extended payment schedule which results in a smaller monthly payment. There are other benefits as well. Did you know that you could potentially save thousands of dollars in student loan interest fees over the life of your loan? By locking in fixed interest rates you can help avoid fluctuating interest fees. The savings on fees and lower monthly payments gives you more flexibility with your money. You could either save the money, invest it, or take a well deserved vacation.

Keep in mind that if you are thinking of college loan consolidation, that it is a good idea to separate the consolidation of your private student loans and your federal student loans. A potential downside to combining both is that you could lose the interest tax deduction benefit on your federal student loans.

On a final note, the lender you choose plays an important part in the college loan consolidation process so it is important to find a reputable company which has evidence of its credibility. Interestingly, some lenders may offer incentives via an interest rate reduction if past student loan payments were made consecutively on time. It is just a matter of taking the time to compare different incentives between lending companies. Loan counselors should be able to assist you on the site of your choice to help you decide if what they are offering is what's best for you.

College loan consolidation is a worthwhile option and can help to put more cash in your pocket. Currently, interest rates are quite low so now is a good time to research lenders and take advantage of the benefits.

For more information on college loan consolidation, visit http://www.student-loan-zone.com Article Source: http://EzineArticles.com/?expert=Rob_Hickey

How To Get A Handle On College Loan Consolidation

By Jon Arnold

If you are going to graduate from college soon or have recently graduated, chances are high that you have a ton of student loans that will need to be paid back. It's pretty nice when you are still in school, since most of those programs don't require that you start making payments on the loan until after you graduate. But after you graduate, it may come as a very rude awakening that you now need to start making payments on that huge figure, which could be as much as $40,000 or even more.

Hopefully while you were in college, you also had a credit card in your name and made regular payments so at least you've got a good start on having a decent credit score. This is important because as you start to enter the very competitive job market, more and more employers are starting to look at a job candidate's credit score as one of the factors to determine if the job should be offered, and if so, at what salary.

But a huge downside here is that can you maintain your good credit score now that you are taking on payments on that huge college loan bill? If it starts to tarnish your credit score, even at the low interest rates that many student loans carry, chances are good that your future job promotion opportunities will be diminished as your credit score starts a downward spiral.

There are many ways to approach this situation, but one of the easiest and often overlooked options is a college loan consolidation program. This is significantly different from a personal loan, because with a personal loan, you are given the money and expected to put it all on your student loan bill. The temptation to skim some money off the top of that loan and put "most" of it instead of ALL of it on your student loan is frequently too difficult to resist. Besides that, getting a personal loan for that huge amount of money is going to be almost impossible, especially at the extremely high interest rates you would get, which would almost certainly be much higher than the interest rate on your existing student loan.

A college loan consolidation program can help. You are not given the money up front, so the temptation to spend it elsewhere is not an option for you. As long as you are making regular and timely payments to the debt consolidation loan company, your student loan obligations are being met, and your credit score and credit report do not suffer.

So why get into a situation where it appears that you are borrowing from Peter to pay Paul? The biggest advantage with a student loan consolidation or college bill consolidation program is that typically your monthly payment amount is less, sometimes significantly less than if you did not enroll in the program. Remember, part of the whole equation here is to lessen the amount of money going out of your pockets every month, and a college loan consolidation can do that for you.

Don't allow yourself to be at a disadvantage in today's job market by having this huge debt hanging over your head. Look into a college loan consolidation program to give yourself the financial breathing room you need as you venture into the real world.

For more insights and additional information about College Loan Consolidation as well as getting a free no-obligation college loan consolidation quote, please visit our web site at http://www.debtconsolidationstrategies.com Article Source: http://EzineArticles.com/?expert=Jon_Arnold

Find Out How to do College Loan Consolidation

By Jon Arnold

For the good majority of those that have attended college, there are debts to be paid off after you’ve graduated. Tuition costs continue to rise and sometimes it takes more than one loan to pay for those additional costs.

When you’ve had your graduation ceremony, have or have not gotten a job, and six months have gone by you will be expected to start paying those loans back. A college loan consolidation can make that repayment easier on you and your bank account.

There are many companies and banks that offer student loan consolidations. These will take all loans that you have taken during your time in college and combine them into one lump sum. That lump sum will be given one interest rate that will often be less than the interest rate that you’ll get from the loan repayment plan you’re given when you’re close to graduation. You will be able to make smaller payments and work toward the ultimate goal of paying off your student loans.

As you are looking for a student loan consolidation company, be fully aware that there can be huge differences in how their program operates. Be sure to compare costs and interest rates especially. Also be on the lookout for those companies who charge a fee for early pre-payment of the loan they give you, which only serves to lock in the interest that they will be collecting from you on this loan.

Most of the loan consolidation companies will offer an interest rate that is preferable to the one you are paying. If you have more than one student loan, you are paying that interest rate more than one time every month. When it comes right down to it you may end up paying far more than the amount you borrowed if paid over a long period of time.

The consolidation loan will give you the benefit of only paying an interest charge one time per month. This interest rate may be 4 or 5% whereas the student loans that you will be starting to pay back at the end of your six month grace period may be 7 or 8%. Many of the consolidation companies will not have a penalty for early payment, but some of them might. Be sure to find out if this is a penalty before you agree to the consolidation. Be well aware of the details of your payback agreement before you sign the papers for the loan.

Each student loan consolidation company will offer something to appeal to you as a way to earn your business. Find the one that will work the best with your needs and will charge you the least amount of interest. This can save you thousands in the long run and make the payback of your student loan as simple and pain free as possible. Since your goal is to pay off your student loan, the last thing you want to do is rob Peter to pay Paul with another loan, which leaves you in the same situation you are now!

For more insights and additional information about College Loan Consolidation please visit our web site at http://www.debtconsolidationstrategies.com Article Source: http://EzineArticles.com/?expert=Jon_Arnold

Discovering The Benefits Of A College Loan Consolidation

By Jon Arnold

With the rising cost of education expenses in today's society, we find that it can cost just as much to complete our education as our first home purchase. The only problem is that in order to get our education we have generally have more than one or two student loans that we will have to pay back. Education prices continue to go up, cost of living expenses go up, yet our pay seems to have stalled somewhere around 1980.

So by the time we have finished school we are already in debt up to our ears just with the student loans that have to be repaid. So how do you cope with your other living expenses like food, car payments and rent when your student loan payments take so much of your much-needed income. The answer is with a college loan consolidation.

The benefit of a college loan consolidation is that you can combine your student loans into one loan and have only one payment. You save time and money when you do this. No more will you have to make multiple monthly payments and lower interest cost. You will be able to budget your income and expenses more easily when you do a college loan consolidation and you will find that you have a little more to go around.

When looking into college loan consolidation you will find that for Federally backed loans if you consolidate soon after you complete college, while you are in your six month grace period, you will get a better interest rate. You will also have more options when it comes to the kind of repayment schedules available.

You may choose to pay a fixed amount over a maximum of 10 years to pay your loans off more quickly; or you can get a graduated payment schedule which will fix you with a lower payment during the first 24 months and then increase the payments every 24 months, hoping your income also increases, and spread your loan out over 12 to 30 years. Another college loan consolidation payment option that can be paid back between 12 and 30 years is to have fixed payments over an extended period and with this option the repayment period is based on how much you have in student loans. Then if you find that your income is not what you expect it to be, you can do an income contingency plan over a period of up to 25 years, which is based on your adjusted gross household income, number of family members in the home and how much you owe.

A really good thing about a college loan consolidation is that if you choose one method of repayment and then find that it does not work for you then you can request that your repayment plan be changed.

Some student loans have additional rules when it comes to doing a college loan consolidation. For example a Perkins loan cannot be consolidated unless you combine it with a least one direct FELP loan such as a Federal Stafford Loan previously known as a Guaranteed Student Loan.

When you are looking into college loan consolidation you should speak with several lenders either locally or over the internet to see who will be offering you the best rate and service. When you decide on the lender make sure you understand any special conditions or fees and the terms of the college loan consolidation before signing any papers.

For more insights and additional information about a College Loan Consolidation and to get a free quote on college loan consolidation, please visit our web site at http://www.debtconsolidationstrategies.com Article Source: http://EzineArticles.com/?expert=Jon_Arnold

College Loan Consolidation - Knowing The Limitations

By Mila Spivak

With the average college graduate leaving university with approximately $20,000 in debt, there is no doubt that college loan consolidation is an effective financial loan option for graduates. By consolidating college loans, graduates will be able to reduce their monthly payments, gain flexibility in repayment options, reduce their numerous monthly repayments into one manageable monthly payment, in some cases reset the clock on deferments and forbearances and gain favourable interest rate discounts and rebates. However, before you decide to consolidate your college loans, you need to be aware of certain limitations and potential drawbacks. These don’t necessarily mean you need to rethink consolidation all together but rather guide you through aspects you need to consider before finally taking the plunge and consolidating all your college loans into one.

The first thing to keep in mind is that you can only consolidate your college loans once. Once you have done so, you will not be able to re-consolidate your loan with another lender. The exception to this rule is when you have left some loans out from the total consolidated amount and now wish to add on more loans. In this case, it will be considered as a new consolidation and you could potentially switch to a more favourable lender.

Another point to consider is the level of discounts you could receive when consolidating college loans. The discounts in interest rates given if you set up monthly bank transfers or you always pay on time are small compared to other financial services. The lenders blame squeezed margins on their college loan consolidation products due to regulations. As such you can expect to receive a maximum of 0.25% in interest rate reductions if you set up a monthly bank transfer and around 1% in interest rate reductions if you don’t miss a payment within the first 36 months of the term.

If you are married and you are now both ready to consolidate your loans, you will not be able to consolidate your partner’s and your loans into one. Since July 1 2006, married graduates will not be able to consolidate their loans together due to potential difficulties if the couple decides to split.

When you have decided to consolidate your college loans, keep in mind that by consolidating you will loose all your interest benefits obtained with Perkins Loan. The good news is that if you have Stafford loans, you keep all the subsidized benefits.

Finally, in most cases, lenders can only offer you college loan consolidation product only if you have $7,500 or more in college debt.

College loan consolidation is not an easy decision and should not be taken lightly. Although it has clear benefits for many graduates and their borrowing parents, you still need to consider all the limitations.

For a complete guide to college loan consolidation, visit www.college-loan-consolidation-help.com Article Source: http://EzineArticles.com/?expert=Mila_Spivak

College Loan Consolidation - The Basics

By Mila Spivak

When you consolidate your college debt, you simply combine several of your student or parent loans together into one loan from a single lender. As a result, you end up with a single manageable monthly repayment instead of making several monthly repayments at once.

College loan consolidation programs are different from ordinary loans and bring with them a number of important benefits:

- Your credit score will not be analysed

- There is no maximum amount available

- You can potentially postpone repayment

- Debts are forgiven at the death of all borrowers

- Interest paid on college loans could be tax deductible

College Loan Consolidation – The Maths

The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.

Here is a typical example:

Jenny has $7,000 worth of Perkins Loans @ 5% and $13,000 worth of Stafford Loans @ 7.5%. When Jenny consolidates her loans into one, her weighted interest average rounded up to the nearest 1/8th of a percent becomes 6.63%. Here is the actual consolidation calculation: (7,000*5% +13,000*7.5%)/7,000+13,000.

When a borrower consolidates a number of loans with different interest rates, the consolidated interest rate is usually lower than the highest of their interest rates, but it is also higher than the lowest of their interest rates. In most cases, if you keep to the same repayment schedule for your consolidated loan as was originally set out in your un-consolidated loans (e.g. 10 years), then the amount of interest you pay over the lifetime of the consolidated loan will be about the same. That been said, there are a number of important benefits that college loan consolidation provides that makes it a very popular financial lending option for graduates.

College Loan Consolidation – The Advantages

One Simple Monthly Repayment - A college borrower can really appreciate the manageability of a consolidated loan when they have multiply loans to manage. Consolidating all the loans into one makes the complexity of multiple loans disappear leaving a borrower with a single monthly repayment.

Alternative Repayment Plans - When you consolidate your college loans, you could potentially take advance of alternative repayment plans which usually become available if the total loan balance is higher. For example, instead of paying back your college consolidation loan in 10 years, you could consider extending the repayment plan to 20 years which will substantially reduce your monthly repayments. In some cases, monthly repayments can go down by as much as 50%. Depending on your circumstances, extending your repayments can make the overall loan more affordable and manageable. However, bear in mind that if you extend your repayments, you will end up paying more interest over the lifetime of the loan. That been said, this option suites many graduates that have other financial commitments and cannot stretch to fully repay the loan in 10 years.

Consolidation resets the clock on deferments and forbearances - In most cases, college loan consolidation resets the 3-year clock on certain deferments and forbearances. As consolidation loan is classed as a new loan, it brings with itself its own set of new deferments and forbearances. This factor is particularly useful for medical students who do not get an in-school deferment during the internship and residency periods.

Consolidating while already in repayment - If you have loans already in repayment then consolidating your loans earlier on could potentially lower your monthly repayments even if you stick to a standard 10 year plan. However, if you are close to the end of the repayment period on your loan, then consolidating may not be the ideal solution.

The benefit of shopping around - If you decide to consolidate your college loans then you can spend time shopping around for the best lender who will give you a higher interest rate discount and better rebates on the fees.

For more information, visit College Loan Consolidation where you will find other useful articles, news and featured college consolidation suppliers.

© Mila Spivak. All rights reserved. This article may be freely distributed as long as the content and active links remain intact. No alteration is allowed without express written permission from the author. For more information, visit http://www.college-loan-consolidation-help.com Article Source: http://EzineArticles.com/?expert=Mila_Spivak

Constantly Changing College Loan Consolidation

By Archana Sarat

The most certain thing about college loan consolidation is that it is always uncertain. It never remains stagnant. The rules and conditions constantly change. Sometimes, they even change every year. Most of the people think that federal loans will be beneficial to them and remain stagnant. However, this is not the case. Whether the loan is a federal or a private loan, it keeps changing. Needless to say, these changes somehow end up being beneficial to the lender. Very rarely, the changes benefit the borrower. However that situation is rare and scarce.

Who makes the most changes to college loan consolidation-federal or private?

While most people think it is the private who are not to be trusted with the college loan consolidation, the truth is that both federal and porivate lenders make changes constantly. However, the federal lender's changes hit the headlines, while the private lender's changes keep silently happening.

The private loan consolidation undergoes many more changes as compared to the federal loan consolidation. The main reason for this is that the private lenders can make their own rules and change it at anytime they prefer. Since they have the absolute power, they can make constant changes (though they have to work within the framework and procedures that bind them.)

What are the various changes that the lenders have made?

Whenever Federal lenders make changes to their loan policies, they affect a wide number of borrowers. Private lenders have the freedom to make changes to their policies whenever they like.

The changes that have been made to consolidation of college loans are rested below:

- In-school status consolidation: Only those loans which have been defaulted, deferred or which are delinquent or in grace period can be consolidated, Therefore, all loans that are accumulating cannot be consolidated if they are paying for the present education. This was brought into force from July I, 2007.

- Reconsolidation: The loans that have can existing consolidation can be reconsolidated from effect July 1, 2006. However, this can be done only if they comprise an FFEL or Direct loan or an FFEL consolidaton loan that is trying to avoid becoming a default loan.

- Joint consolidation with Spouse: The couples that are married do not have the possibility of consolidating their loans together as a single federal loan. This change came into effect from July I, 2007.

- Freedom of choice: The American Department of Education has proclaimed that nearly 40% of the students cannot exercise any choice about who their loan consolidation will be under. The lender has to be accepted by them. Again, their loan type and loan consolidation play a major role in helping them decide their lender. This provision came into effect from 21st March, 2007.

How to decide the right type of action?

There are various options open before you. You may choose to consolidate your college loan or you may choose not to consolidate at all. In case of consolidation, you may choose federal lender or private lender. In case of not consolidating your loan, you will have to repay your college loans one by one. Then, you may have to work the repayment options with each of the lenders. Ask and you shall relieve. Most think twice about asking your lender about various aspects of negotiation. Whatever option you decide to choose, research all the various possibilities and then make the choice. Always take an informed decision.

Archana Sarat is a chartered accountant who loves to write. To know more about student loans, log on to http://aboutstudentloans.org Article Source: http://EzineArticles.com/?expert=Archana_Sarat

All About College Loan Consolidation

By Alan King

After you walk across the graduation stage and experience the feeling of holding a hard earned diploma, the financial journey of a student is far from over. As you search for a job to compensate for all the debt now hanging over your head, you may find yourself responsible for more than one loan. If this is the case, there is an easier way to manage these repayment terms.

To lessen the confusion and demand that more than one student loan may bring, it’s time to take a look into the benefits of applying for a college loan consolidation. When merging multiple student loan commitments, an individual will be responsible for one monthly payment that is set on a specific due date.

The consolidation loan payment amount for the month is also much lower than you would expect. Interest rates are also much reasonable to handle, which are connected to a variety of federal student loans, including the FFEL Program, Stafford Loans, PLUS Loans, Direct Loan Program and Graduate and Professional PLUS Loans.

How Do Consolidation Loans Work?

If you apply for a college loan consolidation, a participating lender will pay off any existing college loan debt. After this is accomplished, a new repayment schedule is created, which involves all of the loans under a student’s name, bundling them into one monthly payment. A nice advantage associated with consolidation deals with fixed interest rates, which will remain the same for the duration of the student loan repayment. When shopping around for the best consolidation offer, keep an eye out for the lenders that offer promising interest rate opportunities.

Acting fast is key to securing the best consolidation loan rates because interest charges have been known to change even while an application is being processed. Since there are numerous lenders, it is suggested to get a heads up on a variety before making a final decision. While some lenders offer an array of repayment options, others may only feature a few. In case you should ever need relief from repaying your loan, you should also review deferment options as well.

What Are the Advantages of College Loan Consolidation?

For each borrower, loan consolidation terms are different because of varying living circumstances, interest rates, and owed amounts will influence the final possibilities. Some individuals will also reap more benefits than others, such as married duos who can consolidate their individual loans into one easy repayment schedule. The time allowed for loan repayment is also extended for up to 30 years when taking this route. Unfortunately, while lower monthly payments may lessen the stress of college debt for some, in the long run, you will also be responsible for an increased amount of interest payments.

How Do I Qualify for Loan Consolidation?

For individuals who have already entered the repayment phase of student loans or are enjoying the grace period, college loan consolidation becomes an option. Defaulted borrowers may also reactivate a payment arrangement when applying for loan consolidation. The only exception to these conditions is the Direct Loan holder, who may still attend college and have the option to receive a student loan consolidation.

Get more student advice on all subjects including student loans advice from the dedicated student website http://www.118student.co.uk Article Source: http://EzineArticles.com/?expert=Alan_King

Choosing a College Loan Consolidation

By Jonathan Hue

Choosing a College Loan Consolidation

There are a few ways to handle college loan repayment, a primary one is through college loan consolidation. Once you have decided that the best way to handle your outstanding college loans is through consolidation, you have to figure out how to go about doing so. Education can be expensive and most of the time grants and scholarships cannot cover the cost of tuition, books, residence and other expenses. Many students have to take out various loans to cover the total amount. Only upon graduating does the full cost of that education become realized by the graduate. All of those loans become due at once and paying them off can seem pretty daunting.

Searching for the right college loan

The first part of consolidating your college loans deals with selecting the lender with whom you will file. It is easiest to check back with your school to determine what lenders work with the type of loans you have and through the institution. Since lenders are competitive, you stand to save in the thousands with their low interest rates and borrower benefits packages. If you are still within the loan’s grace period you can get the best rates possible, but even if you are not you can still get a great deal. Federal loans sometimes have yearly deadlines for consolidation but private loan consolidation can be done any time. Choose the lender that offers the best deal for your financial situation and be sure to read all fine print, you do not want to face extra charges that you signed up for without knowing.

Paperwork for the college loan consolidation application

When you apply for college loan consolidation you will need to have all your paperwork handy. You will have to provide information on the loan types, balances and holders. Of course they will need information regarding the school and the time period in which you were in studies. The lender will also ask you about your current financial and employment situation. You will need to provide contact information for employers as well as some references (usually professional).

Jonathan Hue is a student loan consolidation expert. You can find in-depth and detailed information regarding student loan consolidation issues at http://www.aboutstudentloans.org and check expert topics at College Loan Consolidation Article Source: http://EzineArticles.com/?expert=Jonathan_Hue

College Loan Consolidation Advice

By Nelson Smith

College loan consolidation is advantageous if you have a number of outstanding loans already, you basically take out this type of loan to pay off all the other loans, and this is called loan consolidation. This kind of consolidation is usually done by graduates who are facing difficulties in paying back the loans. College loan consolidation is really important if you are a college student and need financial help outside of your personal budget tuition fees. It is also available for those students who have not yet completed their education and is a great opportunity for graduates from university, college or any post-secondary institution.

Loans

Loans for college have become a necessity for most as the cost of a public or private education has risen enormously in recent years. Loans for college students have aided many college students in pursuing the education that they want and need. They are available to all high school graduates in the United States. These loans come in very attractive packages. When offered from banks or schools, they are classified as private student loans.

The only problem is that in order to get the education we want, we generally have take out more than one student loan. So by the time we have finished school, debt has already mounted just with the student loans that have to be repaid. For those students wishing to get a college education who do not qualify for scholarships and who cannot work or who can't work enough to cover their college expenses, student loans can provide an answer.

Student

Student loans generally have varying interest rates, and it's a good chance that some of your loans will be costing you more in monthly interest charges than a consolidated college loan will. Students can only consolidate their education loans during the grace period or after the loans enter repayment.

The great thing about Student debt consolidation is your credit standing as a borrower-student. They can contract more than one college loan consolidation during their four years of college and can also use the money to help them with hidden costs such as books, fees, traveling home, or even supplies.

Students who do not qualify for federal loans are redirected to apply for another type of college student loan and the rates are usually lower than normal unconsolidated loans.

Interest

Interest rates are at an all time low for the first time in forty years. A college loan consolidation may also benefit you in the form of lower interest payments, so that you pay down the principal more quickly than you would have if you continued paying off your student loans individually. There are numerous benefits of college loan consolidation: lower interest rates; lower monthly installments; a lower payoff amount; or possibly all three.

Rates

There has never been a better time to apply for college loan consolidation and take advantage of these low interest rates.

Credit

You can have college loan consolidation irrespective of what credit rating you have. There is no credit check or income verification. It is however, beneficial for students to make regular payments on time, so taking a facility with your bank to pay back your college loan by direct debit would be a good move as late payments can effect a students credit rating.

Repayment

Repayment as a rule will begin six months after the student leaves college, and the minimum monthly payment on Federal Student Loans is $50 (your actual payment depends on the amount borrowed). You will also have more options when it comes to the kind of repayment schedules available. A really good thing about a college loan consolidation is that if you choose one method of repayment and then find that it does not work for you then you can request that your repayment plan be changed.

The advantage of federal college loan consolidation is that you can actually request a fixed rate that is much lower than the previous rates you used to pay with numerous unconsolidated college loans. Refinancing and college loan consolidation is a great idea for many students, especially if it is used to the fullest advantage. Applying for college loan consolidation is easy and free to do.

You can get more help and information on Debt Consolidation and Debt Management by visiting http://www.debitconsolidation1.com/College_Loan_Consolidation.html Article Source: http://EzineArticles.com/?expert=Nelson_Smith

10 Pointers on College Loan Consolidation

By Georgio Heberto

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.

Georgio Heberto is dedicated to offering news, articles, and instruction on financing college education. You have a definite choice in how you finance your education and beyond. Visit http://www.atopeducation.com for more information. Article Source: http://EzineArticles.com/?expert=Georgio_Heberto

Understanding College Loan Consolidation

By Archana Sarat

Though most students are driven to take a college loan to smoothly complete their education, they realize the entire burden of their loans only after they finish their education. When they are in the first step of their career, repaying a huge loan appears to be a daunting task to them. It is at this point of time that the consolidation of college loan helps them out. However before taking a college loan consolidation, it is vital that they gather all the necessary Information to help them make an informed decision.

How does a college loan consolidation work?

A college loan consolidation reduces the amount of monthly Installment. It does so by increasing the time period of the loan. Another important feature of college loan consolidation is that it combines all the college loans into one and thus there is only one single payment to be made.

In federal loan program, all the federal loans can be combined into one. Also, some private loans can be combined to the federal loans. The length of the consolidation of the college loan depends on the total amount due after all the loans are consolidated.

The period will be about 10 years if the amount is $7500 or less. It may range from 12 to 15 years if the amount is around $10000 to $12000. If the amount is up to $40000, it may be about 20 years. For amounts above $60000, it may be 30 years.

The amount of interest that is due on the loan is based on the loan balance and the term of loan. Many higher value loans have low interest because they are for longer period and thus end up with more interest.

What are the various alternatives to consolidating your college loans?

Consolidation of college loans is a very easy and simple procedure. In the overall terms, you will be paying a higher amount on your college loans if you consolidate them. This is because of the extended term and interest on the loan. However, if you do not consolidate, then it may be a slightly laborious procedure. This is because you have to contact each of the lenders and arrange terms of repayment with each of them. Some of the plans are dependent on your income and will suit your financial standing. Contacting the lenders can extend the term of the loan. This will become a higher amount but it will still be better than the entire overall effect of consolidating your college loan.

Archana Sarat is a chartered accountant and freelance writer. To know about student loans, log on to http://aboutstudentloans.org Article Source: http://EzineArticles.com/?expert=Archana_Sarat

College Loan Consolidation - You Solution To Student Loan Payback

By Wade Robins

For those students wishing to get a college education who do not qualify for scholarships and who cannot work or who can’t work enough to cover their college expenses, student loans can provide an answer. While borrowing money is never the ideal way to pay for anything, there are hundreds of thousands of people for whom a college education would have remained out of reach were it not for student loans. Even state colleges and universities can cost state residents upwards of $15,000 per year.

While student loans may clear the path to a college degree for you, you will eventually come to the end of that path and have to start repaying the loans. You’ll also be at the beginning of your career, and probably have the expenses associated with setting up housekeeping on your own, funding your own transportation, and managing all your own finances. Your starting salary may barely get the living essentials covered, and having those student loans hanging over you can keep you struggling for a very long time.

Benefits Of College Loan Consolidation
But there is help. College loan consolidation is one method of reducing the financial burden of those student loans. College loan consolidation will allow you to take out a single large loan with which you can pay off all your student loans, so that instead of having to make several payments each month, you only need to make one. And you may find that the monthly payment on your college loan consolidation is less than the total of those for your student loans.

A college loan consolidation may also benefit you in the form of lower interest payments, so that you pay down the principal more quickly than you would have if you continued paying off your student loans individually. Student loans are notorious for having varying interest rates, and the odds are excellent that some of yours will be costing you more in monthly interest charges than a college loan consolidation will.

The benefits of college loan consolidation are numerous: lower interest rates; lower monthly installments; a lower payoff amount; or possibly all three. Getting a lower APR means that the total amount of money you repay over the life of the college loan consolidation will be less than what you would have paid for your student loans.

The Single Payment Advantage
And it will save you the hassle of having to make sure, several times each month, that you have enough in your checking account to cover you upcoming student loan payment. If you only have one monthly payment, you can set aside enough to cover it at the beginning of the month and be done with it. You can even make arrangements for your college loan consolidation payment to be electronically deducted from you bank account each month and forget abut the check writing altogether!

You can also find more info on School Loan and College Loan Consolidation. schoolloanshelp.com is a comprehensive resource to get information about School Loans. Article Source: http://EzineArticles.com/?expert=Wade_Robins

What About Your College Loan Consolidation, Now That You Are A College Graduate?

By Charles Neshah

Now that you have graduated from college, one of the most nagging prioritises for you is to settle your student days loans, whether private or Federal college loan. So how nice would you feel to note that you have a constitutional right to lawfully reduce your student loans liability by as much as 60%.

Federal Loan Consolidation:

You can use the Federal college Loan Consolidation Program to make your student loan repayment more manageable. Yes, this program allows you to bundle your existing variable-rate federal loans into a single, fixed-rate loan of unprecedented rates as low as 4.5%.

Best of all is that it is free to consolidate, and there are reputable online private firms that make it even easier with fast, online applications plus, you get Education Finance Advisors who can answer your questions and help you through the loan consolidation process for better college student loan consolidation.

College loan Consolidation Drawback And Best College Consolidation Loan:

Even if you have already consolidated your Federal Loans at a higher rate than 4.5% or you are still carrying your private loans and would like to refinance them, there are also reputable firms you can use to get better deals in spite of college loan consolidation drawback. You can even lump all your loans, both private and Federal, into one single loan portfolio and get even lower rates.

Even if you want to continue your education, you will find loan organizations specializing in helping graduate students and continuing education students. You can even deduct already paid interest on Federal Student Consolidation loans.

Neshah writes for your success. He recommends College Loan Consolidation Success for the best college loan consolidations of all times. Article Source: http://EzineArticles.com/?expert=Charles_Neshah