Basics of Student Loans consolidation

Are you concerned about the multiple student loans taken by you? Wondering about how to manage them? Well, student loan consolidation programs are set up for this very purpose. As a student you may think of venturing with student loan consolidation schemes. A whole lot of questions might be coming into your mind at this point.

This is quite natural. However, there is no cause of worry or botheration. All you need to do is get to know the very basics of student loans consolidation process. Upon learning this you will be able to help yourself in going about with successfully managing consolidated student loans.

Consolidation of loans involves combining of the various loan products which may have been taken into a single product. It is undertaken in order to manage the loans with greater ease and to secure better terms of loan repayment.

As a result of loan consolidation one will need to actually dole out lesser repayment amounts. Moreover, the period of repaying is also made higher thus facilitating procurement of funds which are to be provided towards making repayments.

Now a student consolidation loan is such a consolidation loan and a part of the family loans which have been made available by the federal government under the Federal Family Education Loan (F.F.E.L.) program.

The student consolidation loan enables you to unite together all or some of your outstanding education loans into a single new loan program. Even if the loans are of different kinds and are held by several different lenders it does not pose any problems.
 It is the U.S. government which guarantees federal student loans and these federal student loan consolidation schemes are applicable to all students whether in school, in the graduation level or on the phase of launching a career.
Federal consolidation student loans are characterized by their fixed interest rates and repayment terms extending even to 30 years. It is to be noted that there are the non-federal student loans consolidation programs too which are available. These may be obtained through banks, credit unions, other types of financial institutions, institutions attended by student etc. The private loans consolidations come in this category.

The primary benefit derived from these loans is obtaining of a single monthly payment or reduction of the monthly payment. This is at the cost of increasing the total interest paid over the lifetime of the loan.
There are online ventures of student loans consolidation too. These sites set up by lenders can serve as convenient means of obtaining a consolidation loan.

However, it is advisable to consult a professional qualified loan counselor before striking a deal online. The repayment options and other crucial points of consolidation need to be explored and some thought needs to be given towards checking out comparative usefulness of various deals.

For further help, see:  Student consolidation relief

Federal Student Loan Consolidation Advices

 Federal Student Loan Consolidation programs could supply debt management
solutions for graduates, those who have left school, or dropped to less than
half-time.
A few federal student loan consolidation choices are the Direct Consolidation Loan and private consolidation loan.
Student loan consolidation recourse such as Direct Consolidation Loans sanction borrowers to combine one or more of their Federal education loans into a new loan that passes many conveniences. One lender and one monthly payment, flexible repayment options, no minimum or maximum loan amounts or fees
(direct consolidation loans), assorted deferment options, and reasonable monthly payments.
Many loans may be entitled to consolidation. PLUS loans, Federal Perkins loans, Stafford loans, Health Professions Student Loans (HPSL), Health Education Assistance Loans (HEAL) and more. You might consider consolidating other Federal Consolidation Loans.

Avoid Loan Default.

Default on a loan can occur after a default has persisted for a certain number of days. Before a loan is officially in default it is considered to be in delinquency. While delinquent, the loan holder must attempt to
contact the borrower about repayment.
If the borrow cannot be reached the loan will then be put into default status. The loan could then be made due in a single lump payment.
While in a default state a borrower can't take advantage of any deferments in most cases.

Why choose Federal Student Loan Consolidation?

You should contemplate consolidation to circumvent default. The consequences of default can be severe. You can consolidate Stafford loans, PLUS loans, and Federal Perkins Loans into one single debt. You might chop your monthly payments, but with a longer term on the loan.

Consolidation loans almost always feature a fixed interest rate for the lifetime of the loan. The term of the loan can be extended to 10 to 30 years. Although your monthly payments might be
lessened, the total amount paid would be larger due to the longer term of the consolidation loan.

About Federal Direct Consolidation Loans

You've done it! You have just graduated or are about to finish college. How to repay and manage your student loan debt is just one of the challenges that lay ahead. In many cases your best bet is to consolidate.
It's not all bad news. By consolidating your federal loans you can take advantage of a great government program.
There are many easy to find and easy to use tools available to help you transition too.
The Federal Student Loan Consolidation Program is a very commonly used management tool for your student loan debts.
This program was set up just for you to use and enjoy. Read on to find out specific information that you can take to heart today.

Using Private Student Loan Consolidation.

After you consolidate all your Federal Student Loans initially and distinctly,
consider private student loan consolidation for the remainder.
Private student loans are not possible, in general, to be consolidated with federal loan programs. Interest rates are typically greater on private student loans as well.
Private loan consolidation is an option that complements federal student loan consolidation.
After learning about federal student loan consolidation new graduates might realize that they have the ability to take charge of their finances.

Cash saved through consolidation can be used to pay off credit cards and other higher interest rate
debts.

For further help, see:  Student consolidation relief

A few things to ask yourself before you go ahead with that student loan...

With the rising cost of education nowadays, student loans is one of the best ways to pursue your tertiary education since many students cannot afford to pay the education fees. However, before taking the plunge and taking up a student loan, you need to ask yourself the following questions to decide the type of student loan that you need.
The Types Of Student Loans
There are 2 main categories of student loans currently available. Government student loans which are loans carried out by the government and private student loans which are provided by the private sector. There are pros and cons to each but generally government student loans have lower interest rates, are quite easy to get approved since they do not take into account of your credit history.
For private student loans, the interest rates are usually higher but they allow greater flexibility when repaying the student loans.
Student Loan Amount
Generally speaking, government student loans are usually fixed amounts depending on your education level. For private student loans, the amount that can be loan is more varied and depending a lot on your credit history and the repayment plan.
It is recommended to borrow only the amount of money you need for your education. To do that, you need to estimate how much you will need during the course of your studies. You will need to factor in expenses such as accommodation, living expenses, school/textbooks fees and other miscellaneous expenses.
The Period Of Student Loan
Both government and private student loans provide loans which can last anywhere from 1 year to 20 years. For longer loan periods, you need to factor in the interest rates since you can end up paying a lot for interest and every little for your principal student loan amount.
You need to determine how much you can pay per month after you graduate and have a buffer of at least 3 to 6 months in the event you are jobless.
Other Outstanding Loans
If you have other outstanding loans as well, you might want to consider consolidating the loans before getting another student loan.
Without proper discipline and control, repaying multiple loans can be a huge financial strain. It is better to clear all your outstanding loans before getting a student loan. You can get better interest rates for your student loans as well since you have better credit score.
Interest Rate
The interest rates will vary from lender to lender. Government student loan interest rates are usually fixed and pretty low. Private student loans interest rates varies depending on the type of payment plan you choose.
If you just want to repay a fixed amount per month without worrying about interest rates, it is best to get a government student loan with fixed interest. That way, it is easier to plan your financial budget.
Hopefully your loans are all from the same lender. If they are, the lender will put them together in a package so that you can pay one monthly payment.
However most decent companies will do all the hard work for you. For further help, see:  Student consolidation relief