Student Loans Guide

student loan consolidation info

2008-05-10T03:33:00.000-07:00

student loan consolidation info
By: Studentdoc.com

Types of student loans

There are several types of loans available to students. The simplest categorization is into federal student loans and private loans. Federally funded loans are administered initially through the US Department of Education's Federal Student Aid programs, and are usually the easiest to get student loan consolidation services for. These federal programs disburse about $60 billion a year in loans, work-study support and grants. Stafford loans are the most common form of federal loans for students, but there are a variety of other federal payment plans - among them military / ROTC plans to pay for college.

Private student loans are administered by standard lending institutions. Among the most common are Citibank student loans and the Sallie Mae Signature student loans. These lenders are basically providing unsecured (or in some cases secured) loans to you as a student, and will most often charge higher interest rates than their federal counterparts.

Private and federal loans, along with scholarships, can be combined to fund your education. However, it's important that when it comes time to consolidate student loans, you do not mix the two types together. You should always consolidate your federal loans first, then separately consolidate private student loan debt. The benefits of consolidating your federal loans include: a lower interest rate (usually, but keep in mind that interest rates change every July 1), increasing the time for loan repayment to 30 years which reduces your monthly costs, and reducing the number of lending institutions you send checks to every month. For a more complete discussion of this topic and consolidation eligibility criteria, visit our page on how to consolidate student loans. Medical student loans fall into a special class, and are discussed on our medical school loans page.

Trends for student loans

Nearly 50% of recent college graduates took out student loans, with an average borrowed around $10,000 (1). Until recently, student loan interest rates ran between 6-8%. Recently, though, rates have fallen very low. As of fall 2003, Stafford loan interest rates were in 3-4% range (2).

Students who currently have loans, either a single loan or multiple loans, have a variety of options for reducing their payments and indebtedness. Because interest rates have fallen, loans can be consolidated or in some cases refinanced. When you're considering refinancing student loans or student loan consolidation, you need to compare interest rates before you consolidate federal student loans.

Effects of student debt

Like any debt, student loans can influence your credit and your future decisions. Students who borrowed a substantial amount for college (more than $5000) are less likely to pursue higher education (1). In addition, student loan debt that exceed 8% of your income can be seen negatively when your credit gets assessed for future loans (this is especially true if you have one or more defaulted student loans).

Two ways to reduce the debt burden are: 1) reduce or eliminat the principal balance. Specific types of loans can sometimes be forgiven by service or other higher education - look into the specific student loan program you have. 2) Reduce your monthly payment. Since debt burden is measured by comparing your loan payment to your income, reducing your payment helps your credit evaluation.

References and Links

1. National Center for Education Statistics
2. Consolidation recommendations of the University of Michigan Law School
School loan consolidation - Information on eligibility and rationale for consolidating (or not consolidating) your student loans.
Student loan consolidation programs - A variety of specific options, including loan companies and different types of student loan consolidations.
Private Student Loans, PLUS loans and Stafford Loans - information on different financial aid and student loan options.

student loan consolidation rate

2008-05-08T02:00:00.001-07:00

Federal Consolidation Interest Rate

by http://www.studentloanconsolidator.com/consolidation/projected-rates.php

Federal Consolidation interest rates are based on the weighted average of student loan interest rates. Federal student loans disbursed on or after July 1, 2006 have an interest rate of 6.8%*. Federal student loans disbursed before July 1, 2006 will remain variable interest rate loans. These loans will re-adjust every July 1 based on the results of the 91-day Treasury Bill. Currently, interest rates for these variable loans are:

Stafford Loans for borrowers in grace (1-6 months after graduating): 6.62%
Stafford Loans for borrowers in repayment: 7.22%
Parent PLUS Loans disbursed after July 1, 1998 but before July 1, 2006: 8.02%
Parent PLUS Loans disbursed after July 1, 2006: 8.50%

Need help figuring out what your consolidation interest rate will be? Give one of our loan counselors a call toll-free at 1-877-328-1565.

Apply now online or call toll-free 877-328-1565

*Interest rates on Federal Stafford Subsidized and Unsubsidized Loans change yearly but will never exceed 8.25%.

Private Consolidation Interest Rate

Your first year rate could be as low as 7.52%! The Student Loan Consolidator offers a first year introductory interest rate equal to the 1-Month LIBOR (London Interbank Offered Rate - currently 5.02%) plus 2.50% depending upon your credit, or the credit of your co-signer.

On the first anniversary of disbursement, the interest rate converts to a quarterly variable 1-Month LIBOR plus a margin ranging from 6.00% to 6.50% depending upon your individual credit or the credit of your co-signer, if you have one.

Learn more about private student loan consolidation.

Consolidation Loan Interest Rate Updates

In order to complete a federal loan consolidation, you'll need to provide your student loan information with your consolidation application. We've prepared a short guide to help you get this information to us by phone, fax, mail, or email.

View the guide as a web page!

Print out the guide from a PDF!

Students, parents, and anyone with federal student loans can consolidate online or apply by calling us here at the office toll-free at 877-328-1565. We offer great benefits and the best consolidation rates and services for students and graduates.

Apply now online or call toll-free 877-328-1565

student loan consolidation rate

2008-05-08T02:00:00.000-07:00

Federal Consolidation Interest Rate

by studentloanconsolidator.com

Stafford Loans for borrowers in grace (1-6 months after graduating): 6.62%
Stafford Loans for borrowers in repayment: 7.22%
Parent PLUS Loans disbursed after July 1, 1998 but before July 1, 2006: 8.02%
Parent PLUS Loans disbursed after July 1, 2006: 8.50%

Need help figuring out what your consolidation interest rate will be? Give one of our loan counselors a call toll-free at 1-877-328-1565.

Apply now online or call toll-free 877-328-1565

*Interest rates on Federal Stafford Subsidized and Unsubsidized Loans change yearly but will never exceed 8.25%.

Private Consolidation Interest Rate

Learn more about private student loan consolidation.

Consolidation Loan Interest Rate Updates

View the guide as a web page!

Print out the guide from a PDF!

Apply now online or call toll-free 877-328-1565

private educational loan consolidation

2008-05-08T01:59:00.001-07:00

Student Loan Consolidation

Student Loan Consolidation, also called a Student Consolidation Loan, combines several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. Consolidation loans are available for most federal loans

The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid is increased. For e.g.:- (when one or more of the loans have to be repaid in less than 10 years because of minimum payment requirements), a Student consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years.

Student consolidation loans can help with many bills and reduce payments into one low monthly payment. Before deciding which step to take it is important to learn what the company is offering and what bills can be included in the consolidation loan. The interest rate on Student consolidated loan is calculated by taking the average of the loans which are being consolidated.

Consolidation simplifies the repayment process but does involve a slight increase in the interest rate. Students who are having trouble making their payments should consider some of the alternate repayment terms provided for federal loans.

All unsecured debt such as collection agency debts, personal loans, medical bills, credit card debt, and student loans can be included in a consolidation loan. A consolidation loan gives you one monthly payment instead of several.

College graduates could be looking at a significant increase in the interest rates they pay on federal student loans if they don't consolidate their student loans. The US government sets the rates for all federal student loans based on the 91-day Treasury Bill (T-bill) rate at the end of May of each calendar year. The rates are then fixed for the year, becoming effective July 1, and affect all non-consolidated student loans.

Graduates and students graduating should consolidate as soon as they are out of school. Locking in current rates can save thousands of dollars.

A student consolidation loan combines several federal student or parent loans into a single larger loan. Most federal loans can be consolidated: Stafford, PLUS (Parent Loans to Undergraduate Students), Supplemental, Direct, Perkins and others.

Downsides to consolidation
The most obvious downside is that even though your payments are smaller, you are extending them over a longer time. That means you'll pay out more total interest. Also, as with any kind of consolidation loan, the borrower may be tempted to spend more or even borrow more because of the smaller loan payments. Then you're just piling up more debt than if you hadn't consolidated.

education student loan consolidation

2008-05-08T01:58:00.000-07:00

Student Loan Consolidation

student loans consolidation, student loan debt consolidation

2008-05-08T01:55:00.000-07:00

Student Loan Consolidation

Student Loan Consolidation, also called a Student Consolidation Loan, combines several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. Consolidation loans are available for most federal loans

The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid is increased. For e.g.:- (when one or more of the loans have to be repaid in less than 10 years because of minimum payment requirements), a Student consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years.

Student consolidation loans can help with many bills and reduce payments into one low monthly payment. Before deciding which step to take it is important to learn what the company is offering and what bills can be included in the consolidation loan. The interest rate on Student consolidated loan is calculated by taking the average of the loans which are being consolidated.

Consolidation simplifies the repayment process but does involve a slight increase in the interest rate. Students who are having trouble making their payments should consider some of the alternate repayment terms provided for federal loans.

All unsecured debt such as collection agency debts, personal loans, medical bills, credit card debt, and student loans can be included in a consolidation loan. A consolidation loan gives you one monthly payment instead of several.

College graduates could be looking at a significant increase in the interest rates they pay on federal student loans if they don't consolidate their student loans. The US government sets the rates for all federal student loans based on the 91-day Treasury Bill (T-bill) rate at the end of May of each calendar year. The rates are then fixed for the year, becoming effective July 1, and affect all non-consolidated student loans.

Graduates and students graduating should consolidate as soon as they are out of school. Locking in current rates can save thousands of dollars.

A student consolidation loan combines several federal student or parent loans into a single larger loan. Most federal loans can be consolidated: Stafford, PLUS (Parent Loans to Undergraduate Students), Supplemental, Direct, Perkins and others.

Downsides to consolidation
The most obvious downside is that even though your payments are smaller, you are extending them over a longer time. That means you'll pay out more total interest. Also, as with any kind of consolidation loan, the borrower may be tempted to spend more or even borrow more because of the smaller loan payments. Then you're just piling up more debt than if you hadn't consolidated.