Paying Off Defaulted Student Loans

If you have not made your federal Stafford, PLUS or Graduate PLUS loan payment in over 270 days, your student loan will be considered in default. What can you do about this to keep your credit from being ruined?

Having a defaulted Stafford, PLUS or Graduate PLUS loan on your credit report will cost you dearly in the long run. The bad mark will mean higher interest rates and credit denials until it is cleared, a minimum of 7 years. Even if you pay the loan in full it will still be marked as defaulted. There is only one way out of this predicament - loan rehabilitation.

Contact your lender and make arrangements to pay back your student loan and you are on your way to a clean credit report. Your lender wants to get paid, and they know the best way for that to happen is to work with you to come up with a payment you can afford. When you reach a satisfactory repayment agreement with your lender stick to it!

After nine full payments on your defaulted Stafford, PLUS or Graduate PLUS loan made within twenty days of their due dates (twelve full payments for Perkins loans) your loan will be taken out of default status and your credit record will be clean. These must be voluntary payments. Garnishment or other forced payments do not count. As soon as your default status is cleared you will be free to consolidate your loans and lower your payments even more.

While you may be able to consolidate after three consecutive payments your loan will not be taken out of default status. This will be marked on your credit record as 'defaulted, paid in full" and still considered a black mark so loan rehabilitation before consolidation is mandatory for a clean credit history

The Background Of Student Credit

This article will explain the reasons why you should begin building your credit as a student. Whether you are taking night classes or are going to school full-time, this article applies to you. It is very often stressed that any young person who wants to get ahead should attend college. What is not stressed and is very important as well is to establish credit.

To give a little background on credit, you and everyone else in the United States who has a Social Security number and is over the age of eighteen will have a credit report. You may have never had credit in your life but you will still have a credit report. This credit report will often show as blank with no credit but a credit report is still kept.

Credit is not something to be afraid of but it is merely a reflection of your financial history. There are many factors which go into your credit report and the following sentences will explain what these are. Your credit report will show any open credit cards you have along with loans you have taken out. For each open credit account such as a credit card or a loan, there will be a history of this account. It will tell what your account limit is along with what your current balance is.

It will list your monthly payment as well as your payment history. With payment history, this is an indication if you pay your bills on time. If you do not pay on time, this is a negative and causes your credit score to go down. This goes in as either usually thirty, sixty, or ninety days late. If you have not paid your bills and had a company file for collections, this can show on your credit report as well.

There are other factors but these are the main ones. The credit report shows that you are paying your bills on time and that you manage your accounts correctly. If you ever apply for a credit card or want to buy a car and need to take out a loan, a loan officer will pull your credit. He or she wants to make sure that if he or she lends you the money that you will pay the money back to them.

With your credit report, there is a score associated with this and the number depends upon what credit bureau you are talking to. There are three different credit bureau agencies and these are Equifax, TransUnion, and Experiean. With each of those three credit bureaus, your respective score will fall within a range and this will determine what interest rate you will pay when borrowing money.

The more you pay your bills on time and manage your credit accounts responsibly, the higher your credit score will be. This will allow you to get the lowest interest rates. If you don't manage your credit responsibly, you will have a lower credit score and will have a higher interest rate. It is simple when you think about it: the lower the credit score, the riskier you are and the bank or loan company needs a higher interest rate to offset that risk.

See how it is important for your student credit when thinking about what you want to do with your future. Managing your credit will save you hundreds of thousands of dollars in the long run because you will receive lower interest rates. This article has given a background on credit and showed you why it is important to start this process young rather than old.

Student Loan Consolidation Rates

Student loan consolidation rates are competitive and can be lend through government or private lender. There are many options available for a student to select the best provider of student loan consolidation, you can search for a lender online and can check their interest rates. In student loan consolidation interest rates plays a great role. Today in the market, thousands of lenders are lending loans to student but when it comes to their interest rates, they are charging very high which is unaffordable by a student. Consolidating loans and getting good student loan consolidation rates can help a student shift into responsible bill paying consumer. A student can take a leave from paying monthly on student loans. In student loans, a student has to pay interest every month and for their monthly bills, he has to pay separately but in student loan consolidation, a student has to pay only one payment. It is uncommon for a borrower to get a fixed interest rate that is up to 0.6% lower than their current rates. According to federal regulations, calculating the interest rate on a consolidated loan disbursed on or after July 1, 1994 involves the weighted average of the interest rates of the old school loans you are consolidating under the new one, rounded up to the nearest one-eight of one percent. Fixed interest rates on a consolidated loan cannot exceed 8.25 percent.

It is researched that Americans are the first one in the row of taking the advantages of student loan consolidation rates. Now a days thousands of student getting advantage of applying for student loan consolidation as it not only allows you to study well but give you the options of shopping also. Consolidations are one way of getting control over spending and effectively planning a budget. For a best student loan consolidation rates you can surf on net and can be able to find lenders who are proposing affordable payment plans. They give best advices to the students to choose the best student loan consolidation in low rates. Thinking about the student loan consolidation is very easy, when it comes on the student loan consolidation rates, you have to browse different company's brochures, need to enquire about the company's creditability, the most important thing you need to ask yourself about your requirements which is very important for the application of student loan consolidation. When a student applies for student loans, it is advisory to check the terms that are offered by the student loan provider. But in the student loan consolidation you don't have to apply for different types of loan, only one will solve all your problems. You have to make one monthly loan payment every month, instead of several loan payments every month over time. This not only saves the student's time, but keeps them relax from the tensions of paying differently on their loans.

How Not To Pay Back Your Student Loan

Is there ever a chance you will not have to pay back your student loans? The answer is: YES! Depending on the type of student loan you have and when you obtained it, you may be able to cancel all or a portion of your loan under one of the following circumstances:

* The former student for whom the loan was taken has died. * You become totally and permanently disabled. * Your school closed before you could complete your program of study. * Your school falsely certified that you were eligible for a student loan. * You left school and were entitled to a refund but never received the money. * You teach in a Department of Education-approved school serving low-income students or in designated teacher shortage areas (other types of teacher cancellations are available for Perkins loans). * You serve in the U.S. military (partial cancellation for Perkins loans only). * You're a full-time employee of a public or non-profit agency providing services to low-income, high-risk children and their families (Perkins loans only). * You're a full-time nurse or medical technician (Perkins loans only). * You're a full-time law enforcement or corrections officer (Perkins loans only). * You're a full-time staff member in a Head Start program (Perkins loans only). * You are a Peace Corps or VISTA volunteer (Perkins loans only).

These circumstances apply mainly to federally funded student loans. Other lenders, however, may extend the same courtesy to you if you discuss it with them. They are not required to do so, but asking does not hurt.

Keep in mind that should the circumstances above change, you will most likely be asked to repay your loan. Find out beforehand what the exact conditions of the loan forgiveness entails. Doing so will help lessen any surprises in the future.

Why Student Debt Consolidation Is Both Good And Bad For You

When you think about the debts you have incurred as an undergraduate, do not get upset about it. There are many undergraduates who come out college with both student loans and credit card debt. With the cost of tuition increasing and many students responsible for their schooling and living costs, it is only understandable why you will have debt coming out of college. This article will break down into three sections: the situation, the goods, and the bads of debt consolidation.

To think that you are the only one who has debt problems is to isolate yourself in the financial situation you are in. If you talk with friends, you will find they may be in the same boat as you are. You may even want to ask your friends if they are in the same situation so you have someone to talk about with this. If you do not feel comfortable doing this, Google the group Debtors Anonymous. You can talk about your debt problems with others in anonymity. This can be a very emotional process so it is important to have an outlet in which to express and share your emotions with others.

Debt consolidation can be very good for you because it can help you find a solution to your problem. Many people get themselves in debt but have no idea how to find a solution to reduce and eliminate the debt. Using a debt consolidation company will allow you to work with a trained professional who is able to look at your situation objectively. It can be very difficult to create solutions to your debt problems when you are so deep into the problem.

You are emotionally involved so you will not be thinking as clearly as the trained professional. Debt consolidation companies are able to talk with your creditors to often create one payment for you every month, which can eliminate the hassle of many different bills. These companies often can negotiate lower rates on your outstanding debts and help you create a budget to help you for the future.

Debt consolidation companies can be very good for you but there are drawbacks to using one as well. This can potentially have a negative effect on your credit. Your creditors may report that you have not paid your account as agreed in the original terms. Some debt consolidation companies have bad track records and you have to watch out for scam artists. You may have to pay fees to use these companies and this may be the last thing that you can afford when you are struggling to already pay your bills.

Hopefully this article has given you good insights into why you may want to work with a debt consolidation company or why you may shy away from one. Ultimately, the decision is yours but there is one main fact to keep in mind: do not isolate yourself simply because you have debt. There are many different resources available out there for you so do not be afraid to use these.

Best student loan consolidation,

Student loan consolidation, a way to slim down your monthly burden

Going to college is very important. Thus, Americans, even married once still continue to go to college. This is because you have better future if you are able to finish college; this is true in American and even in the other parts of the world.

To help you with this important factor in your life, student loans are available to help you go through college education. However, students end up with knee-deep in student loans.

If you are one of these students, you need not despair; you may shop around to find the best student loan consolidation entities to help you in the process of getting out of debt.

Best student loan consolidation will help reduce your monthly payment of up to 50%.

You cannot find any better deal than that. Reducing your monthly payment will mean that you can have some spare money for other purposes. Best student loan consolidation will thus help you have some money to meet other expenses like car payments, household needs, and childcare.

Additionally, because of the best student loan consolidation program, your credit rating will improve and you can even extend your paying period from the usual ten years to as long as thirty years.

You may also find the best student loan consolidation company that will give an additional percentage of interest on top of the savings from the consolidation. This will be good to lessen your monthly burden.

Additionally, if your student loan is under the federal direct student loans, you may qualify for the best federal direct loan consolidation program.

In this program, in addition to the 50% or more reduction in your monthly payments, there is a lock in lower interest rate available for you.

This lock in lower interest rate is best for your student loan consolidation program because it will shield you against inflation rates.

This will mean that you will not have to worry about additional charges due to the inflation rate fluctuations.

To top is all off, the best student loan consolidation deal under the federal direct program is easy to apply, and there are no fees, credit checks, application, or original charges.

Thus, it is a clean way through paying your student loans and can even spare you some money for other purposes. Is this not the best student loan consolidation program you will ever find?

If you are not sure if your student loans are under the federal direct student loans program, you may check out the Internet. Match your student loans if they will qualify for the best student loan consolidation program.

You can also find in the Internet additional information that you can use to help you get out of that knee-deep debt.

How To Apply For A Student Loan

There are many factors to consider before applying for a student loan. Among these are how much is available in savings or other non-loan areas. Are you going to receive any scholarships? Is the educational institution accredited? Will you be going full time or only taking one or two classes? Make a list of the expenses for each semester. Will you be living on campus or commuting? Allow enough money to purchase books, food, clothing, and other basic supplies. Once those criteria have been established, you must allow yourself plenty of time to complete the process.

Before even considering loans or grants, you must have received an acceptance letter from the educational institution of your choice. Once that has been accomplished, it is best to visit the school in person and make the acquaintance of the financial aid office. However, that is not always an option. The second step, once an acceptance letter is received and returned is to fill out the FAFSA or Financial Application For Student Aid. Most financial aid offices will help in filling out this form and sending it to the correct address. While awaiting the results from this, explore the possibilities of various grants and scholarships that are available. Again, the financial aid office will help determining the availabilities of these.

The FAFSA will generate a SAR or Student Aid Report. Use this form in conjunction with grants, scholarships and other financial awards to calculate the amount of money that will need to be borrowed to ensure payment of the educational credits. If you are planning on working while attending school, these funds can be used to offset the total repayment amounts. However, the lending institutions will use these monies to determine the loan amounts available for subsequent semesters.

Student Loans

College is not cheap. Although there are many ways to pay for the education it usually involves some form of loan. The best ones are from parents because the payback time and interest rates are always much better. Since this source is not always available, the federal government has a program that will. This is the federal student loan program.

The most popular federal student loan program is the Sallie Mae fund. This program arranges loan through private institutions at a much lower interest rate than is otherwise charged. Application is usually done through the financial aid office of the schools. The amounts lent are based upon the applicant's financial needs as well as the fees and tuitions charged at the educational institution.

This loan, like most grants and scholarships takes into account both the student and his families financial liabilities. Most of the loans of this type are paid directly to the schools. Once the school has deducted the tuition and fees, a check is given to the student for the purchase of books and other supplies necessary.

Other sources of loans are banks and credit unions. These are private institutions and will base the amount of the loan upon the person's credit rating. Some of requirements may include collateral to ensure payback. One of the most common forms of this collateral is a second mortgage. For young borrowers, many financial institutions will require a parent or guardian to co-sign the loan.

The terms of most of these loans signify that payback is to start upon graduation or after a six-month grace period from graduation. Should the student decide to go on to an advanced degree, most loans will be again deferred until the degree is obtained or other arrangements are made. These requirements will vary from institution to institution.

Student Loan Debt Consolidation

There's no way around it. If you took out student loans to pay for college, you have to pay them back. That can be hard to do, whether you're still in school, trying to start your life outside it, or even 10 years down the line. You borrowed the money, you used it, and you have to pay it back.

What happens when that means you have to choose between paying all your bills or just those? What happens when those outstanding debts get in the way of putting money together for a house, or a car, or a family? It just doesn't make sense to walk through life incurring the debts of living while you're still dragging around the ones from school.

Fortunately, there's a solution. You still have to pay back what you borrowed, but with a student loan debt consolidation make monthly payments to just one lender.

Think of it as refinancing. The money you borrow from one lender pays off the money you owe to all those other lenders. No more juggling what's due to whom and when. Not only that, the interest rate on the student loan debt consolidation is the weighted average of those other loans, making it lower overall and bringing your monthly payment down accordingly. Some student loan debt consolidations are settled at a fixed rate, so you don't have to worry when July 1 rolls around each year that your payment will go up.

Among the student loan debt consolidation available, there are actually four different student repayment plans to research and one is bound to be just what you're looking for.

If the idea of a fixed rate really appeals to you, consider either the Standard Repayment Plan or the Extended Repayment Plan. The Standard Repayment Plan gives you a maximum of 10 years to repay, but payments are divided within that time limit at a fixed interest rate.

Extended Repayment Plans relieve the burden of monthly payment amounts still further by stretching the time to pay off the loan to between 12 and 30 years (depending on the total amount borrowed). Again, the interest rate is fixed for that time period, and the payments are lower. Be aware that over time, you will end up paying a larger amount, but the monthly payments will be easier to bear.

The Graduated Repayment Plan also allows you to spread your monthly student load debt consolidation payments over a period of between 12 and 30 years, but in this case, the amount of your monthly payment will increase every two years.

The fourth plan appeals to a number of people because it takes into account what's going on in your life. In the Income Contingent Repayment Plan, a reasonable monthly payment amount is determined based on your annual gross income, family size, and total direct student loan debt. Another advantage of this student loan debt consolidation repayment plan spreads the payments over 25 years.

If you're close to the end of your student loans, consider carefully whether taking on a new loan is worth the time and effort. However, if you still have a long time to go and many payments ahead of you - and you've already exhausted the deferment and forbearance options on your existing loans - making a fresh start with a student loan debt consolidation may actually be to your benefit.

Student Credit_ Dealing With The Bad Credit Report

When you start building credit, not everything may go smoothly. There can be bumps and bruises in the road. This can happen with your credit and things happen sometimes when you are first starting to build credit. You may miss a bill which is supposed to be paid or there may be an eviction because you have partied too much. Any number of events can cause negative consequences to your credit report. This article is going to explain how you can work at rebuilding bad credit and what this will mean to you in the long run.

Bad credit can be cleaned up and it is not an indication of where you need to stay with your credit. To fix your credit, you need to have a clear focus and be willing to take action. Take time to first order a copy of your credit report. If you go to the website annualcreditreport.com, there are instructions on how to order a copy of this. It is important to do this to see where your credit is at and if there is incorrect information. Incorrect information which has a negative impact, when properly removed, will cause your score to go up without you having to do much else other than dispute the charge.

The second step in fixing your student credit and dealing with the bad is to start building new credit. You will want to establish a new and positive payment history so that good information can replace the bad information. When credit scoring is done, more emphasis is placed on the newest information, especially your payment history in the past year. Making on-time payment will have a huge impact on building your credit score back up.

If your credit is really bad, you may have trouble finding ways to rebuild your credit. If you search online for a "bad credit credit card" you will find many different options which are available to you. You can also look at a secured credit card. This card requires a down payment usually of around $250 and whatever you use as a down payment is what the limit of the card will be. If you do not feel comfortable using a credit card because that is what got you in trouble, think about a loan.

There are some secured loans such as a credit helper loan that some banks do offer. The basic gist of this loan is that the bank will loan you a thousand dollars, put the money into a certificate of deposit or a savings account, and not allow you to have access to the money until you pay the loan off. This will allow you to make monthly payments and build your credit history while allowing you to save money since that thousand dollars will be yours at the end of the term of the loan.

Finally, think about what you will do differently this time. Taking these steps will allow you to build new credit but maintaining good credit requires new habits. Taking the time to budget properly and maybe not use credit cards as much could be an answer. Simply breaking away from old habits will be key for you though. Good luck in this endeavor.

Student Credit Card Debt

This article will talk about the necessities of managing your student credit card. If you have read some of the other articles, you have seen that it is important to manage your credit cards. This article will talk about how high the student credit card debt level is.

Let's start with the undergraduate years. Using Nellie Mae as the source (largest provider of student loans in the United States), the average student comes out of college with roughly $2200 in credit card debt. If you are a graduate student, the figure jumps to $5800. To look further at the American household, the average credit card debt is a little less than nine thousand dollars.

Why were those numbers given straight off in this article? What kind of pattern can you see when you look at those numbers? Here is what you should see: the bad habits which began as an undergraduate continued into the graduate years and into the working years. The student credit card debt balloons eventually to almost nine thousand as an average with many households coming in at higher numbers than the nine thousand dollars. There are bad financial habits which are in place and are never corrected.

Let us take this back specifically to you. You do not want to find yourself in this situation when you graduate from college or from graduate school. Here are the actions you need to take make sure you avoid student credit card debt.

Pay off your credit card every single month. It is very easy to tell yourself you will pay it off next month but next month turns into the following month and often that balance can continue to grow eventually to a level you never thought it could reach. Carrying a balance is a slippery slope because it is acceptable for one hundred dollars one month and maybe two hundred dollars the next month.

Be honest with yourself. If you find you are pulling out your credit card for something you don't need, you may be overspending. Retail stores promote their credit cards so heavily because it has been proven that people spend more with credit cards than if they have the cash with them. You do not think as much about what you are spending when you use your credit card.

Keep track of how much you spend on the card on a monthly basis and keep track of this weekly. Your credit card balance can get out of control if you only check out how much you owe once a month. Weekly check-ups allow you to change your behavior before it becomes a problem at the end of the month. This allows you to act instead of react.

Hopefully this article on student credit card debt has given you helpful knowledge. Credit cards can be a good thing or a bad thing in your life. It is how you manage the card or let it manage you. Most people let their debt manage their lives instead of them managing their lives with less debt. There is a very simple but powerful difference in that previous statement. Good luck!

Fafsa - Free Application For Student Aid

FAFSA is Free Application For Student Aid. This is the first step in all applications for establishing a person's eligibility for federal or private loans. Federal loans are called Stafford loans and will be covered separately. There is a minimum eight-week turn around time so application must be made early. This procedure must be completed online at www.fafsa.ed.gov. Once this has been completed it will generate a form called the SAR or Student Aid Report.

If you do not include an email address on your FAFSA application the SAR report will be sent to the postal address indicated. Some institutions, such as foreign country institutions require the full eight-page SAR and this must be sent to a postal address. Once the SAR has been received, the student is then free to select the financial institution to secure the loan.

To ensure a person understands the entire process of filling out a FAFSA, a trip to the library may be in order. Check with the librarian for directions to start the search. By doing the research up front many of the more common pitfalls can be avoided. As you work through the search process, you may likely discover sources heretofore-unknown companies and businesses that offer student loans. Some of the larger libraries may even have a computer section where you can file the FAFSA application.

The FAFSA process will also list the state resources and funds available. Often these sources are overlooked. There are state student loan agencies that are available but too often the prospective student doesn't even know they exist. By using the FAFSA process, all available resources are thus listed. Because this is a lengthy process and the loan application is also at times lengthy, one should start as early as possible to ensure compliance in time for classes to begin.

Student Loan Information

Venturing off to a University can be a wonderful and exciting experience. I certainly recall the day I enrolled for my first classes toward an English degree. WOW, was there ever a long line at the admissions office! But forget about all that hassle. No one has to deal with waiting in any lines for classes anymore. Everything is on the web now days. Just create an account and you'll be set throughout your college career. It takes all of a few minutes to sign up for courses. Now the bookstore on the other hand is a different deal altogether. You will commonly find lines heading clear out the door at the start of each quarter/semester. Oh but wait; we forgot one crucial aspect of college life. How are you going to afford all this? After all, a higher education is definitely not cheap by any means. Maybe what you need is some student loan information to get you started.

Like many college students striving for their BAs and BSs, I sought out student loan information and financial aid options. Right from the start my mother told me to apply for any and all grants I could find. She said it was free money, if I recall correctly. This is the cash you will not have to pay back with interest. Then there is the student loan process. Many of us need valid student loan information to get started with college life. With dorm or apartment fees, food, tuition and books to cover, we need all the funds we can muster. So get ready to apply for some student loans. One of the major ones that most of us tend to take advantage of is the Stafford loan. You can apply for subsidized and/or unsubsidized. I always recommend subsidized first because the government pays the interest on the loan while you're still in school. You can't beat them apples. Even though it can be difficult living the student life, there are perks set in place for you if you look for them.

Try the Internet! This is the ideal place to begin your search for student loan information. Everything you need to know is on the web. You can even pull up the fafsfa website and get started with your student loan and financial aid process right away. Find out what you qualify for and who offers the best interest rates following graduation.

Direct Student Loan Consolidation

Student loans are two-edged swords. Without them, you couldn't pay for that degree you worked so hard for. On the other hand, without them, you might actually get to keep the amount you pay out every month for yourself. You might get to pay your other bills on time, afford a more reliable car, or find a better place to live.

If repaying your student loans is challenging your budget, or worse, putting your finances - and credit rating - in the red, you might want to think about a direct student loan consolidation.

With a direct student loan consolidation, you exchange your outstanding student loans with their higher interest rates for one loan with a more manageable, fixed interest rate.

A direct student loan consolidation may be the answer to more than one problem. If you have struggled to meet your monthly payments and in fact have used every option for deferment or forbearance your current loans offer, or find yourself about to default on your loan, a direct student loan consolidation can mean a fresh start. A new loan is often a clean slate.

Not only do deferment and forbearance options become available in case of need again, but often direct student loan consolidation gives you a much lower interest rate - as much as 0.6 percentage points - thereby lowering your monthly payments. And when you consolidate those student loans under a new loan, those loans show up on your credit report as paid off, and your credit score benefits.

There are four plans for repaying a direct student loan consolidation that you many want to investigate as you consider which is best for your needs.

The first plan is a Standard Repayment Plan and gives you a fixed monthly payment for up to 10 years. The Extended Repayment Plan also sets fixed monthly payments, but the repayment period is set between 12 and 30 years, according to the total amount you borrow. In this plan your payments are lower because they are spread across a long period of time. Keep in mind, however, that making payments over longer periods of time means you will end up paying out a larger total amount.

The third option is the Graduated Repayment Plan. This is another direct student loan consolidation plan with a repayment period between 12 and 30 years, only in this plan the amount of your monthly payment will increase every two years.

Finally, if you have a job and family, the Income Contingent Repayment Plan may be what you're looking for. This plan sets a monthly payment based on your annual gross income, family size, and total direct student loan debt, and spreads those payments over a period of 25 years.

While direct student loan consolidation may be the best way to get on top of student loans for some, if you are close to paying off your existing loans, it may not be worth it in the long run to consolidate or extend your payments.

However, if you are still seeing loan payments coming out of your pocket well into the future, consider the direct student loan consolidation seriously. If you consolidate your loans while you are still in school, you may qualify for a 6-month grace period before repayment begins. You may find you will be able to keep any subsidies on your old loans.

Lower your monthly payments, improve your credit rating, gain control of your loans, and give yourself peace of mind about the future with a direct student loan consolidation.

Consolidating Your Student Loans

Student loans are just as burdensome as any other loan and in some cases students have several loans taken out in order to pay for college. This is where student loan debt consolidation comes in with a plan of consolidating all of an individual's student loans into one manageable loan.

You need to get your facts by researching various places before you apply for one of these consolidation loans. Only certain types of loans can be consolidated under this type of loan and you will need to check. You cannot include loans such as credit cards, loans from family members, or automobile loans in the student loan consolidation.

The obvious benefits to consolidating a student loan are that there will be a single payment, probably a lower payment, and one fixed interest rate. The fixed interest rate is especially attractive because this helps a person set up a budget easier.

Of course the drawback to a fixed interest rate in this type of loan is that you may not be able to take advantage of future drops in interest rates if they occur.

Another drawback to student loan debt consolidation is the length of the term. It could be that you end up paying this loan longer than you would have otherwise and in the end pay more total interest. So be careful to get all of the data about your student loan debt consolidation loan before you sign the agreement..

Finally, you need to determine if consolidation is really for you before doing it. It may be that you want to pay off the loan faster as student debt consolidation loans tend to stretch out longer. But for most it is an attractive way to get your payments down and manage your student loan debt

Student Loans For Graduate Students

For those who want to continue their education into the post-graduate level, there are still loan options available. The biggest ones are the same as undergraduate loans, the Perkins and Stafford Loans. Another resource is to look to private organizations for graduate loans. Below is a brief summary of the loans available to graduate students.

GOVERNMENT GRADUATE LOANS

Government graduate loans differ from undergraduate loans really in name only. So just like undergraduates, graduates have the opportunity to get a Perkins or Stafford loan from the government.

1) Perkins Graduate loan

A Perkins graduate loan is available to students who demonstrate financial hardship. It has an interest rate of only 5 percent and can finance up to $4,000 of the graduate student's education. For graduate students who are adversely limited economically, the Perkins loan is one of the best options.

2) Stafford Graduate Loan

Stafford graduate loans are available to any graduate student regardless of their financial situation. Two types of Stafford graduate loans exist: subsidized and unsubsidized. The difference between the two types lies in who pays the interest. For subsidized Stafford graduate loans, the government pays the interest. Students pay for the interest in unsubsidized Stafford graduate loans, though there is the option of not having to make payments until after graduation.

To apply for either the Perkins or Stafford graduate loans, one must submit a FAFSA form to the government. When the form has been processed the government will send a SAR (Student Aide Report). This will give further instructions on how to apply for these loans.

ALTERNATIVE GRADUATE LOANS

Alternative graduate loans, also known as private graduate loans, are loans funded by non-governmental entities. Companies offering these loans could be banks, credit card agencies or any other enterprise interested in helping graduate students secure student loans.

Student Credit Cards

In today's world, having a credit card is a luxury. Credit cards are a great convenience, meaning that you don't need to worry about cash when making a purchase. Although some credit cards have strict requirements, there are a lot of manufacturers that are giving both high school and college students the chance to get their own credit cards. Student credit cards can be used the same way as a traditional credit card, although they do come with certain restrictions and limitations that other credit cards don't normally have.

A lot of companies and banks that offer student credit cards will normally need a co-signer as a form of insurance or collateral. This person will sign on the loan with the student, and will be the person the company falls back on if the student is unable to pay the bill. Normally a parent or guardian, the co-signer is considered to be back up and a peace of mind for the issuer of the student credit card, as they can always count on the co-signer with good credit to pay if the student can't.

Normally, the APR or interest rate is higher with student credit cards, which helps to minimize the risk for the company. The spending limit is also different with these credit cards, as most are between 250 - 800 dollars. The reason for this, is because most students have established any credit, and therefore won't have a great credit rating. Although the spending limit is obviously lower with these cards than other credit cards, they will still help students establish credit.

Students who plan to make a large purchase, can greatly benefit from using student credit cards. To make large purchases, you"ll need good credit - which is where a student credit card can really help out. You can use these credit cards as a stepping stone to building credit, and establishing a good credit rating. If you can get your credit rating high with your credit card, you"ll then be able to be approved for much higher loans in the future.

Student credit cards can also help students gain a sense of responsibility. The card works just like any other credit card, although the spending limit is much lower. Once the student has mastered usage of the card, he or she can manage money much better later on in life. These cards are great for students to have, and can teach them money skills that will last a lifetime.

Just like traditional credit cards, students should also know that student credits cards can be dangerous. Although they are great to have, there are pitfalls such as overspending. If students spend more money than they having coming in, they will be unable to pay their credit card bill, which will then affect their credit. If the company goes after the co-signer to pay the bill, it could also affect their credit as well. Therefore, students should always have a budget in mind before they start using their credit cards.

All in all, student credit cards are great to have. For high school students or college students, these credit cards are a means of freedom, and a way to teach responsibility. They can come in handy during emergencies, which is reason enough to invest in them. If your son or daughter is in school right now, you should look into student credit cards. They can help your child to establish credit - which will take them farther wherever they go in life.

You can find the best choice of credit cards and pre-paid cards at www.CreditCards.us (http://www.creditcards.us)

How To Use An Online Debt Consolidation Calculator

Student debt consolidation calculators are available on nearly any site that offers debt relief. The calculators for debt consolidation help debtors discover the potentials of savings each month on student debt consolidation. Since debt consolidation agencies work to combine a debtor's bills into one monthly installment, they can help get rid of the high interest rates on loans or credit cards.

Some debt consolidators lay out a play that will help you get taxes back on your efforts. Thus, the calculators presented by these websites will help you to determine how long it will take before the investments become equivalent to the fees of getting a fresh loan for consolidating your bills.

Therefore, before you fill out that application that will add points against your credit reports, use the website calculator to determine if the deals are right for you. The calculator requires that you have your bills on hand to determine the amount you owe.

Most calculators are the nearly identical with the exception of a few that are more advanced. However, you will need to supply your zip code, an estimate of the interest you pay, the terms of your agreed payments, the cost of your loans, the loans' points, and you tax rates. You will also need to supply to the debt consolidation calculator amounts on car loans, boats, credit cards, and other loans.

Once you provide the student debt consolidation calculator with the details, you will hit the calculate button to get an estimate. Some debt consolidation calculators may require more or fewer details. For instance, some request student loans while other use the the label "other loans" is most likely where you would type in your student loans in debt consolidation calculators that do not specifically ask for this information.

Finally, online debt consolidation calculators are faster and easier to use than filling out applications.

No Credit, Bad Credit, No Problem You CAN get a Student Loan

Even if you have little credit or no credit rating at all, you can still get a student loan. Student loans are a good way to build credit as well, so once you obtain one, be sure to repay it.

Wonderful student loans for those with little or no credit are government-backed loans or loans offered through your university. One such option is the Stafford loan. When the student borrows these loans, most lenders do not look at the student's credit history. You can apply for a Perkins loan as well, which also does not look at your credit history. The government supplies the money for this type of loan, but it is reserved those who are most in need, so this option is not available for everyone.

Because Perkins and Stafford student loans are often limited to a particular amount each year and in total, there are also government-backed student loans for parents of students, called PLUS loans. Because these are government-backed loans, lenders - whether a financial institution or the government itself - do not look at anyone's credit score. These lenders do, however, take a look at your credit history to decide if you are late on any payments or in default. If so, you will not be able to receive a loan.

One thing to remember with government-backed loans is that, though you can defer payments and you may have very low interest rates, you must re-pay your loans. The government cannot only hire a bill collector, but they can confiscate your federal tax refunds or even deduct the payments from your wages. Also, if you declare bankruptcy, more often than not, your student loans will not be forgiven. If you have bad credit or no credit, student loans can be a good option for you.

Sallie Mae Student Loan Consolidation

When your student loans get the best of you and you're wondering how you're ever going to get out from under all that debt, take a look at loan consolidation. It may be the answer to a number of your problems.

Turn to Sallie Mae loan consolidation for a way to pay off your federal student loans, improve your finances, and put a little extra money in your pocket every month. A Sallie Mae loan consolidation replaces your existing multiple student loans with one loan, usually with a dramatically lower interest rate - as low as 4.75%. The difference a few percentage points can make in monthly payment amounts can mean the difference between scraping to pay bills and actually having a little extra pocket money.

It is not uncommon for a borrower to get a fixed interest rate that is up to 0.6% lower than their current rates. According to federal regulations, calculating the interest rate on a consolidated loan disbursed on or after July 1, 1994 involves the weighted average of the interest rates of the old school loans you are consolidating under the new one, rounded up to the nearest one-eight of one percent. Fixed interest rates on a consolidated loan cannot exceed 8.25 percent.

Every July 1, the interest rates on federal student loans are subject to change according to the annual fluctuations of short-term federal securities, and with them your monthly payment. One of the benefits of a Sallie Mae loan consolidation is that the interest rate is locked in for the length of the loan. While interest rates may be lower some years, when you are locked into an interest rate at least your payments will be predicable and will not rise in the years when the interest rates do.

A Sallie Mae loan consolidation also offers the opportunity to increase the length of the loan. The longer you have to pay it off, the smaller the monthly payments will be. Remember though, lengthening the life of your loan may mean paying out a larger total amount over time.

Applying on-line for a Sallie Mae loan consolidation is free, there are no fees, and there are no credit checks. A few minutes of your time can get you smaller monthly payments and better credit scores; when your Sallie Mae loan pays off your old student loans, your credit report reflects those paid off debts.

Things happen in life and in a crisis sometimes, those student loan payments don't get made on time, or at all. If you have used up your deferment and forbearance options on current loans, consolidating your debt under one Sallie Mae loan may mean a fresh start and a clean slate. If you are facing a situation where defaulting on one or more of your current loans is a very real possibility, acting now to take advantage of a Sallie Mae loan consolidation may save you a lot of problems and help you out of an overwhelming situation. If you decide that a Sallie Mae loan consolidation is what you want, there are four options for repayment plans, the Standard Repayment Plan, the Extended Repayment Plan, the Graduated Repayment Plan, and the Income Contingent Repayment Plan. The Standard Repayment Plan offers fixed monthly payments, but the life of the loan is limited to 10 years. The Extended Repayment Plan also offers fixed monthly payments, but spreads them over 12 to 30 years, depending on the total amount borrowed, which lowers the amount of the monthly payments. The Graduated Repayment Plan also spreads payments over 12 to 30 years, but the monthly payments increase every two years.

The Income Contingent sets a payment plan that is calculated on your annual gross income, family size, and total consolidated loan debt, figured into a period of 25 years to pay it off.

A Sallie Mae loan consolidation may be the best option for you, but be sure to explore your options thoroughly to make sure you get the best loan for your situation.

Budgeting For Your Student Credit Card

When you use your student credit card, you must ensure that you have sufficient funds to cover your balance of your statement. This article will give you an indication why you must only spend with your credit card what you have available.

To start this off, think about your life as a high school student and what has happened so far. For most high school graduates who have lived with their parents through their teenage formative years, they have not had to worry about finances. Coming onto campus with little knowledge of finances can be a tough combination with the rewards that credit card companies are willing to offer if you open up a credit card. The first key when thinking about budgeting for your student credit card is to read what you are signing up for. The rewards you will receive for signing up for a new credit card pale in comparison to the finance charges if you run up a balance on your credit card.

Take this fact into consideration when you are filling out a credit card application. The average graduate from college owes roughly twenty-two hundred dollars on credit cards, according to Nellie Mae who leads the nation in student loans. If you think about this fact and how long it can take to pay back this money when including interest, you would probably not take out that credit card.

If you have $2200 in credit card debt and your interest rate on the card was twenty percent, you would be paying over four hundred dollars in interest. Most students feel that they will pay this back when they graduate and make money in the real world. What is not often considered is how long this can take to pay back and it can be difficult to pay this back with other living expenses such as rent, car payments, insurance, and the list goes on. What seems like a big check often is much less once you have taken into consideration the costs of living everyday life.

To make sure you are correctly budgeting for your student credit card, you should only spend what you can pay for. This should be included in a monthly budget if you need to. Some students will only put gas on a credit card or groceries and have that money sitting in their checking account at the end of the month. Taking the time to understand when you should spend money and not spend money is a key to making sure that you properly maintain a disciplined budget with your credit card. Budgeting and not spending beyond what you can pay for is a skill which must be learned at a young age. If you do not develop this habit at a young age, you could find yourself continuing with the same habits as you get older. This can partially explain why the average American household owes roughly nine thousand dollars in credit card debt.

Hopefully this article on the importance of budgeting for your student credit card has explained why it is so imperative. Seeing the type of credit card debt the average student finds him or herself in should explain completely why you want to budget for your student credit card.

Student Loan Pitfalls_ Dangerous Default

Introduction The student loans just like the other forms of financial aid are a service that is subject for repayment. However, although aware of such fact, many borrowers still fall to the trap of walking away from student loan debt which then results to series of consequences. They tend to ignore their being summoned to enter repayment usually either 90 or 120 days after separating from school or after dropping below half-time enrollment. With this, the loans remain delinquent for 270 days or become 270 days past due at any time, leading the loans to 'default" status.

Student Loan Default, Defined Defaulted student loans are actually defaults made by the borrower to the creditor of the terms and conditions of the student loan contract. It is usually caused by the act of escaping from debts, leading to unfavorable consequences on the part of the borrower. Basically, prior to the declaration of student loan default is the delinquency period. At this period, the lenders of student loans authorized under Title IV of the Higher Education Act will exhaust all efforts to find and contact the borrower.

If the lender's efforts of locating the debtor are unsuccessful, the loan will then be placed in default. It will be turned over to either the state guaranty agency or the Department of Education. And, once the loan enters the default status, the maturity date is accelerated, making the overall payment in full due right away.

The Consequences of Student Loan Default

When the loan enters the default status, several consequences are connected to it. Some of them are mentioned below: * The loans may be turned over to a collection agency. * The borrower will be liable for all the costs associated with collecting the loan. This may even include the court costs as well as attorney fees. * The borrower can be sued for the entire amount of the loan. * The wages may be garnished. * The federal and state income tax refunds may be intercepted. * That federal government may withhold part of the Social Security benefit payments. * On the credit record, the defaulted loans will be mentioned, making it difficult for the borrower to get an auto loan, mortgage and even credit cards. Note that having a bad credit record can harm your ability to find a job. * The borrower's chance to receive federal financial aid will now be impossible to happen until he repays the loan in full or make arrangements to repay what he already owe and make at least six consecutive, on time, monthly payments. * Federal interest benefits will be denied.

Aside from the above mentioned consequences, there is also some other less-obvious consequences that are oftentimes omitted from consideration. One of those could be the rule that the federal student loan borrowers holding defaulted student loans are no longer entitled to any deferments or forbearances. Subsequently, there are some instances when the loan default may force the individual to consider or take a semester off. This must be taken due to his or her inability to qualify for federal student aid as well as to afford the cost of higher education independently.

What's more, there is a great possibility for those borrowers who defaulted on their student loans to lose their professional licenses. For instance, the lawyers who possess defaulted loans may be subject to have their license to practice law disavowed. The doctors and certified public accountants would also fall into this category. Lastly, the borrowers who just ignored summons for loan repayments will become liable for all fees associated with collecting the federally financed loan. This means that the borrowers will end up repaying their outstanding debt, plus up to 25 percent in contingent fees in order to satisfy the student loan debt.

Note that this rule is actually consistent with the Higher Education Act as well as on the terms of most borrowers' promissory notes. The Collection Procedures Involved with Defaulted Student Loans Most of the guaranty agencies' stringent collection procedures have successfully deterred student loan neglect. One of the supports for this claim is the steady decrease and current all-time low of student loan default rates.

However, although the collections department is highly committed to assisting those who are in default and making repayment as simple as possible, the non-response in the borrowers' side still opens up to one or more of the following collection approaches:

*Garnishment of Administrative Wage: Under the Higher Education Act of 1965, the Department of Education as well as the state guaranty agencies may require employers who employ individuals with defaulted student loans to take away 10 to 15 percent of the debtor's disposable income per pay period. The garnishment of the administrative wage is actually a resort taken only when the debtor refuses to voluntarily repay his or her defaulted debts and may persist until the total balance of the outstanding debt is paid back.

*Treasury Offset Payments: Aside from administrative wage garnishment, the Department of Education has the right to request the Treasury Department to perform a federal offset against the federal income tax refunds as a way of collecting defaulted student loan debt. To simply put, the borrowers with loans in default status may forgo any federal tax refunds until he or she has repaid the defaulted loan.

* Legal Action: Litigation can be pursued by the Department of Education as well as state guaranty agencies as a means for collecting the defaulted loans. It means that if the debtor refuses to repay the debt voluntarily, he or she is subject to prosecution in a state or federal district court. The borrower is therefore sued for the outstanding debt as well as for the attorney and court fees.

But, these methods are usually considered as last resorts, thus need prior notice of the proposed offset. Preventing Default There are several ways that you can make to prevent the onset of student loan default. It is just somehow necessary for you to place your interest and efforts on preventing it. Here are the possible ways that you can consider: 1. Make sure that you understand your loan options as well as the related responsibilities prior to taking out a student loan. 2. Simply make your payments on time. 3. If possible, inform your lender or service provider promptly about any of the possible adjustments that may affect the repayment of your student loan. In case you move or change your address, let them know. Also, make sure that they know about the name changes, which are very possible because of marriage; graduation or termination of studies; leaves of absence as well as transfers to another institution. 4. If certain financial difficulties are encountered, try to consider applying for a deferment or forbearance on your loans. Many experts often suggest that it is much better to defer your payments than to go in to default status. Along with this, ask your lender or service provider about the available options while you are still making payments, before you enter the default status of your loan. Always note that after you default, you won't be able to get a deferment or forbearance anymore. 5. If for instance you are having trouble making your payments, try to contact your lender as they may be able to suggest an alternate repayment options for you. Some of the possible options include graduated repayment, income sensitive repayment, as well as income contingent repayment. Also note that the types of available repayment options currently depend on whether the student loan was issued under the FFELP or FDSLP or Direct student loan programs. 6. A student loan consolidation can be considered as another way for preventing student loan default. Combine all of your educational loans into one big loan as this gives you the chance to send your payments to just one lender. What's more, you may be able to extend the term of the loan in order to lessen the size of your monthly payments. 7. Simply keep records regarding your student loans. If possible, try to back up copies of all your letters, canceled checks, promissory notes, disbursement notices, and some other necessary forms in a file folder. Just be organized.

Getting Out of Default

In case your loan already entered the default status, don't worry. You still have hopes if you will just try to pay even just a little consideration on your debts. The first move to take to get out of debt is simply to make arrangements with your lender to repay the loan. It is commonly noted that once you have made six regular payments, there is a chance for you to be eligible for an additional Title IV aid.

After you have completed twelve regular payments and applied for and received "rehabilitation", you will no longer be considered in default. It is also at this time when the record of the default will be eliminated from the reports to credit reporting bureaus. And, for further information about the available repayment options that could suit your needs, just contact your lender. The financial aid office at your school should also be able to tell you the name, address as well as the contact number of your lender. They can also give you supporting help and advice about your repayment problems.

Student Loan Rehabilitation As the phrase suggests, the loan rehabilitation is a program designed to rehabilitate the defaulted student loans and return such loans to a favorable status. This program actually requires 12 consecutive monthly payments of a predetermined agreeable amount. It is often suggested that those borrowers in default status must contact their servicing agency to define the loan rehabilitation program that is reasonable to both parties. However, if a reasonable rehabilitation program cannot be reached with your lender, there is the office of the Federal Student Aid Ombudsman, which is a neutral party, designed to resolve any disputes.

Conclusion

Having said all these, the defaulted student loans are no doubt a serious problem that must be healed as soon as possible. This is for the fact that when the case intensifies, certain damages not only on the person's credit rating, but other consequences as mentioned above will greatly result like a brush of fire.

Student Loan Repayment Tips For The Life Of Your Loans

It is often said that the most effective debt management strategy is to be debt-free. But, in order to pay for your college education, you may need to take out student loans.

Student loans are applied by many people these days. It is for the hope that student loans can greatly support their education. Well, that is primarily the purpose of student loans, but there are some instances that getting student loans is what lead people to be buried deep in debt. This is common among those who failed to repay their debts or those who actually escape from their obligations.

Now, planning for successful repayment involves a lot of considerations. The planning should start before you place and strike your pen on your first promissory note. Just as you are making a commitment to your career by way of investing time and money in higher education, you should also make a commitment to your financial future by way of effectively managing your student loans from the beginning.

Here are the most recommended tips and tactics that may help you handle your student loan debt effectively and repay the loans successfully.

Tip #1: Do Your Own Research

Always note that not all loans are the same. Some of them, such as the ones provided by the Indiana Secondary Market for instance, offer benefits during school as well as after graduation in the form of repayment incentives, while other do not. They will pay the 3 percent origination fee normally charged on Federal Family Education Loan Program (FFELP) loans, and this process actually means more money for the books, school supplies and living expenses. And, after you graduated, there is a chance that you will be qualified for reduced interest rates especially when you ready your payments up on automatic withdraw. So, with the differences in student loans, it is necessary that you do your research before signing the first promissory note.

Tip #2: Pay Attention to the Mail

Typically, every borrower receives important information regarding the student loan he or she took out. The mail usually comes in before, during and after school. So, it is somehow important that you read all of the materials you receive carefully. In case, you have questions, the source of the materials is available to welcome you with your questions. Don't hesitate to ask, and never ignore the correspondence or you may miss out a very vital deadlines or details about your loans.

Tip #3: Be Organized

When taking out student loan from a particular institution, it is always best to save all of your student loan documents and correspondences. This makes you aware of what exactly you've agreed, what is expected from you as a student loan borrower, and how much you have borrowed. At the start of the student loan process, you may find it unnecessary to keep all the documents, but when the repayment period is approaching, there is a great possibility that you may refer to some or all of these documents.

To makes things easier for you, begin by setting up an easy to use record-keeping system where you can store your student loan documents and correspondence. As you may know, there are a number of books and software products on personal finance to help you get started. Whatever you may use, whether file folders, binders, portfolios, or envelopes, it is a good idea that you set up one folder for every type of loan or account you have and keep the items sorted accordingly.

Here is what you should keep:

* Important documents like your student loan applications, promissory notes, disbursement and disclosure statements, as well as loan transfer notices. * Copies of all correspondences between you and your student loan lender, loan holder, and/or servicer, including your school's financial aid office. * Addresses and telephone numbers of your lender, loan holder, and servicer. These must be maintained up-to-date. * The name, the date and time of the conversation, as well as a summary of what you have discussed. These must be considered especially when you are speaking with anyone regarding your student loans as these may be valuable for future reference or clarification.

Also, when setting up your record-keeping system, be sure that it is comfortable to use. This means a system that you will find easy to maintain over the life of the loan. This record-keeping system must also be secured from theft or fire. Many experts also suggest that you should keep all your student loan related documents and correspondences until all the education loans you've taken have been fully repaid.

Tip #4: Be present at All Required Entrance and Exit Sessions

When you take out student loan, you will be required to complete student loan counseling sessions. This is often considered when you first obtain the loan and upon graduation. Also, it is worth noting that some schools these days offer this on-line and the sessions will not require a great amount of your time. However, they will provide you with a great deal of information on your right and responsibilities as a borrower.

Tip #5: Learn to Manage Money like an Expert

It has been said that if you live like a professional while you are in school, you will live like a student once you've finished your degree. In other words, it is important that you know very well how to handle your money while you are attending school. This will help you lessen the total amount you end up borrowing, and in turn, the amount you will responsible for repaying. Here are some of the tactics that are worth considering:

* Develop realistic budgets for while you are attending school and even after you graduate. This will allow you to borrow not more than you need, giving you a great chance to repay your loans. * Learn to live as cheaply as you can. Always remember that you are just a student. You will enjoy a more comfortable lifestyle once you've graduated especially if you lessen your borrowing while you are in school. Some of the most recommended ideas for how to be thrifty include getting a roommate, renting a movie instead of going out to the theater, as well as bringing your lunch from home instead of eating out. Be thrifty as possible. * For any credit card bills you receive, try to pay the full amount due. * Establish a budget for yourself and follow it. While you are in school, it is important that you know how to resist the urge of using credit cards or your student loan funds to purchase things that are included in your budget. Don't just buy unnecessary things. * If possible, explore work-study or other part-time employment. As often said, it may give you an opportunity for you to study or obtain valuable professional experience, other than help cover overheads.

Tip #6: Maintain at least Half-Time Enrollment

Considering a half-time enrollment is highly necessary in order for you to qualify for an in-school deferment. The half-time enrollment normally takes six credit hours. Regarding your school's requirements for half-time status, see your financial aid officer.

Tip #7: Take Advantage of Tax Savings

Some of the student who takes out student loans qualifies for tax credits. To see your own status, check with your tax advisor. The credits are actually based on your qualified tuition payments, and they can help reduce the amount of Federal tax you pay. Now, if you are paying interest on a student loam, you may also be able to take a deduction on your Federal tax return for those interest payments. Therefore, to obtain the full benefit of the credits as well as the deductions, grab the opportunity of employing the additional tax refund to pay down your student loan debt, or perhaps to handle your educational overheads.

Tip #8: Repayment Tips As you enter the repayment period, note that being aware of your student loan obligations is very crucial. This is where the student loan default usually happens. It occurs when you fail to pay back the loan as agreed or meet the other terms of your promissory note. The promissory note for each of the loans must then be referred prior to your graduation or before you leave school so that you know what your rights and responsibilities are in repayment.

Here is what you should do as you enter the repayment period: * Send your education loan payments when due every month, for the full monthly payment amount or more. This must be done regardless of whether or not you receive a bill. * Note and understand the repayment options provided by your student loan lenders. With some available options, there is a possibility that you can lessen the total cost of the loan by making a high monthly payment. Other options may even lessen your initial monthly payments and may make it easier for you to pay back your leans early in your career. * Understand the deferment as well as forbearance. In case you need them, just learn to exercise your options. * Remember that the loan consolidation and its repayment options have its pros and cons. So, understand them. * Keep your school, lender or servicer informed of your whereabouts. Contact them immediately if you change your name or address; have questions about billing statements; have problems making your scheduled payment on time; or if you want information on or application for deferment or forbearance. * Read, note and understand all the correspondence you receive from your student loan lender, loan holder, or servicer. And, respond them promptly if asked to do so. For Further Information If for instance you need further information regarding your student loans, always remember that the financial aid staff at your school is probably your most important resource. However, there are also some consult publications from federal and state governments, lenders and scholarship granting organizations, and financial ad guidebooks that are available from your local bookstore. They are great enough for you to start your own search.

Pell Grants instead of Student Loans

There are ways you can lessen the amount of student loans you need. Once you are accepted at an accredited university, college, or community college, talk to the financial aid department. There are several scholarships and grants that are based on income and may make it possible not to need as high a student loan.

The Pell grant is one of the federal programs most schools automatically file for students. The maximum award is over four thousand dollars. However, not all students will get the maximum amount. Many factors are considered when a student applies. With few exceptions, a part time student must be carrying at least a half time load. Another factor that is considered is the actual college costs for both tuition and books.

Unlike a student loan, a Pell grant is just that, a grant. It is never repaid. It is up to the individual institution as to how the money is applied. You may either receive a check or have it applied directly to your school expenses. The various options will be discussed between the student and financial aid officer. Federal law required payments to be made a minimum of twice per academic year.

Another issue to consider when applying for a Pell grant is the type of institution. State colleges and universities are often less expensive than private colleges. Pell grants are available to Universities, private colleges and community colleges. The community college system is often the least expensive and can be used to earn Associate degrees and have many of the credits then be applied to a four-year institution. By using the Pell grant to pay many of these expenses the student can thus earn a degree that can be used to secure employment that can then be applied to the continuing education process.

Private Student Loans

Federal student loans are based on both income and availability. What happens if you can't afford college yet don't qualify? An alternative choice for you or your parents is a private student loan. These are loans done through private lenders instead of the government. The advantage of these types of direct student loans is that they have many of the same kinds of benefits as federal loans.

These loans can be used for any and all college expenses. Things like tuition, books, supplies, computers, and living expenses are all things that qualify for private student loan funds. These loans are unsecured, meaning that no collateral is needed. The loans are credit-based instead. This can mean that you might need a co-signer if you have not established a credit history.

A private education loan is usually a low-interest loan. The money can be delivered in as little as five days, and the money is given to you instead of the school. You are then responsible for paying for their various educational expenses.

This kind of loan has other advantages similar to federal loans. The interest and principal payments can be deferred until you graduate from school. For most of these loans, you are required to be attending school at least halftime for the deferral of payments and interest.

When you do graduate, the loans can usually be deferred for six months until you finds employment, and then you will generally have a variety of repayment options available so that you can tailor your payments to your income.

Don't let the high cost of a college education deter you. There are options available even for those who do not meet low income standards required by federal programs. Take time to do some research and you will soon be on your way.

Options For Paying Your Student Loan.

There are mainly four options for paying back your student loan. If you land up with a good job once out of college, and can afford to make steep monthly payments, go with the standard payment schedule.

Under this option, you can pay off your debt within 10 years with the best interest rate. It's the quickest way to pay off your loans. However, it requires high monthly payments.

Graduated payment is an option if you expect to make a modest but steadily increasing wage. The payment requirements will start off gentle, and will gradually increase every couple of years for the next 10 to 30 years.

If you're in a commission-based or seasonal business, your income will vary accordingly. In this case, your monthly payment bill will be proportional to the amount you are currently making. You get a levy of get up to 15 years to pay it all off your student loan.

With a long-term payment option you'll be allowed to pay the least possible amount per month for 10 to 30 years. That however means that in 30 years you may have paid double the original amount of your loan. You have the flexibility of choosing to switch from one payment option to another, depending on your financial status..

Student loan consolidation is another well-trodden path chosen by graduates each year. It allows you to put together your separate student loans into one big loan. Debt consolidation will bundle your student loans into one, with a single loan amount which will be much lesser than paying multiple loans.

Some also choose consolidation because it's easier to keep track of the bill. Banks want their money and will often work with you to find the payment method that is easiest for you to keep paying. The bank gets their money and you can live within your budget.

Consolidation Of Student Loans

Paying for college can be a real hassle especially when you graduated from your school almost a decade ago. Many graduates think that the six months they have before the required scheduled repayment of their various college debts is an eternity. The six months is nothing compared to the years of payments ahead of you. A consolidation of student loans can make the monthly much less painful.

I used to have three separate student loan bills. Two were for my undergraduate studies (which I have decided I actually couldn't afford) and one was for graduate school (which I definitely could not afford). Paying all three bills in a timely manner was a real headache for me.

Part of the problem lies in the simple fact that I have trouble remembering to complete tasks that I really don't want to complete. There must be some kind of subconscious thing going on here that I haven't come to terms with as of yet. The best solution for me was to get a consolidation of student loans.

The process of finding a lender that will accommodate your needs is no problem at all. In fact, many of these lenders come to you. A consolidation of student loans has helped me keep track of my account much easier and it afforded me a few extra dollars each month. Actually, I save about 150 bucks each month through the consolidation.

This extra money is wonderful but I also like to put a little extra on the principal each month. This is a great way to knock down the principal quicker and avoid paying too much interest. I find that the smaller monthly payments I got through the consolidation of student loans helps me make an extra payment here and there. This makes a world of difference.

The other benefit of choosing a consolidation of student loans is the interest rate itself. Even though you are refinancing the debt you will still receive an excellent rate of interest no matter what your credit is like. This is a great benefit for anyone who wants a consolidation of student loans without the fear of hiking interest rates.

I chose to take this route about two years ago and I definitely made the right decision. I have smaller payments as well as the promise of paying off the entire debt in less time than I though I would. A consolidation of student loans is a great way to gain control of this monster of a debt.

Borrowing Student Loans Responsibly

As you may know, student loans are today's largest form of student aid. Researches have found out that it made up to 54 percent of the total aid awarded every year. However, with the rise of student loans, several cases of student loan defaults occur. The student loan debt is even today's one of the major problems of most student borrowers. It is rising every year and the college expenses as well as the graduate school costs have definitely gone up faster than inflation.

Well, let me tell you that this case often surface when you take a particular loan then another student loan followed by another loan. It is often said that as much as you take student loan offers, your loan debt gets bigger and bigger. Since the case for student loan debt always happens and it carries certain burdens to the attainment of the student's dream of higher education, it is then important that you consider some steps that will help you lower or manage your debts.

Perhaps one of the most necessary things to consider is to borrow loans responsibly. Think Before Your Borrow Many people find it easy to rush through the student loan process. However, if you take a minute considering some of the money saving tips mentioned below, you could save yourself some bucks in the long run. So, read on.

Falling Into the Loan Trap? Oops! Avoid it! Most of the time, you may find it tempting to borrow up to the maximum amount. Well, this is what many people call as the "loan trap".

It is the case where you borrow the maximum amount of money from the student loan lending company or institution even if it is more than you can afford to repay. It often occurs for the fact that need-based loans are very easy to apply for and they don't usually require payments while you are attending your degree.

So, to avoid certain consequences as you enter the repayment period, you should avoid the loan trap. How Much Loan Do You Actually Need Before you consider borrowing a student loan for your college, think first how much loan you really need. Always note that when taking out student loan, you don't have to borrow the entire amount which is usually specified in your award letter.

Just borrow what is enough. Reduce Your Loan As Much As Possible There are several options available for student loan borrowers. But, before opting for one, it is necessary that you question yourself if you can hold down the expenses; if you can work more, either in the academic year or during vacations; or if there are scholarships available for you. It is often said that if you minimize spending or bring in more money, the amount you have to borrow for your education tends to go down. Consider Student Loans with the Best Terms Note that the lower the interest rate, the less pricey the student loan is.

This actually means, the less you will have to repay for your student loan debt. For your own sake, here is what your batting order should be (from the least expensive): Student Loans 1. Federal Perkins Loans 2. Federal Subsidized Stafford or Direct Loans 3. Federal Unsubsidized Stafford or Direct Loans 4. Alternative or Private Loans

As you may know, most of the students thinking for student loans have access to a special loan source these days. These sources, like the Air Force Aid Society, have student loans terms that are comparable to the Perkins or Subsidized Stafford or Direct Loans. Of course, it may be worth your time to look into the possibilities. T

here are some sources these days that offer low-interest student loan programs, and perhaps one of the most resourceful is the College Board's online Scholarship Search. Parent Loans 1. Federal PLUS Loans 2. Private Loans or Alternative Loans As mentioned, there are two available forms of education loans for parents.

These programs are what commonly offered by some colleges anywhere in the world. But, for great chances of availing the benefits of such programs, it is best to check with your financial aid office to see if the school you wish to attend offers its own loan program. This will also allow you to know if you qualify for the loan, before you submit a PLUS loan application. How Much Should You Borrow? Many experts agree that you should borrow only as much as necessary.

As mentioned earlier, it is often tempting to borrow whatever you are offered or are eligible to borrow. However, it is necessary to think first carefully about hoe much you really need, as well as to consider other possible options. Always note that there is actually no need for you to borrow the entire amount shown in your award letter.

And, even more important is that, never plan to borrow as much as you can up the yearly limits because if you do so, expect yourself to be deep down in debt. Consider Options That Will Reduce Your Loans If you are thinking for borrowing money to support your education, try to ask yourself first if you have savings left that you can use instead of taking out a student loan from the school of your choice.

Also, think if you can get by with less by way of holding down expenses, or if you can do something great, like working more, either in the academic year or during vacations just to support your education.

Also, think for the possible scholarships that you can apply for, or you can be qualified for. There are actually a lot of options left for you out there. The best move to take now is to know and understand them. Estimate Your Loan Payments It is worthy to note that the more you borrow for your education, the higher is the amount of your monthly repayments will be once you finish your degree.

So if possible, try to estimate your loan payments. There are a number of student loan repayment calculators out there that you can use to do the math. What's more, you have the chance to calculate your monthly payments based on the estimated starting salary of your chosen occupation. The Essential Borrowing Tips Now that you have pondered enough about your student loan with the things you have to consider before borrowing, as well as with the amount you need to borrow, I guess it is now important for you to look at the most recommended tips for borrowing student loans.

Just consider the following: 1. Start by looking at the award letter given to you by your servicer. From the letter, figure out which need-based loans you have been qualifies for and for what amounts. 2. After looking at the full financial picture, such as the awarded aid, education cost, and family share, you should then consider settling on an amount that you actually need to borrow. 3. The rule is: never borrow more than you need. Always note that as a student loan borrower, you are not required to take the full amount of the loan you have been offered. 4. Don't ever forget about student employment as an alternative for borrowing. Even though working at a job can seem like an extra burden for students, so is struggling with high loan repayments after college. 5. Apply for the student loan right away. This is very necessary especially if you want to ensure that the loan is approved as well as the money paid to the college before you have to make your first student account payment. 6. The key to successful application is to follow the loan application instructions carefully. Note that any mistakes you make will delay receipt of the funds. 7. When you are applying for a Stafford or Direct student loan, be prepared for the amount that is paid to the college to be less than the amount you signed for. Usually, a fee of up to four percent will be deducted from the student loan. This deduction occurs before the check is sent to the college of your choice. 8. If you already figured out the exact amount you are borrowing before any borrowing process begins, you should start keeping track of your student loan tab, which is what your monthly repayment amount will be after you graduated from college. There are student loan calculators out there than can do the math for you. 9. If instances occur that you find yourself needing more than the amount that's been offered in your award letter, it is necessary to contact with a financial aid counselor before taking on an additional loan. 10. And, if you do take on an additional, unsubsidized loan, just consider making interest payments while attending your degree. The interest won't be much and this will help you save money. If you delay or capitalize the interest payments, you will end up having to pay back significantly less than. As mentioned, planning and thinking your moves for taking out student loans is very necessary for a successful borrowing. If you do consider what have been mentioned above, then there is no doubt for you not to attain your dream education, and even a successful career in the future.

Staying Out Of Trouble With Student Loans

Once you graduate and find a job, the reality of paying back your student loans hits. Below are some steps you can take to help keep the payments from causing you heartache.

The first rule is to stick to a payment plan. Set aside a certain amount every month for your loan payment. Making a larger payment than required each month can help you pay back the loan sooner, thereby saving you a great deal of money on interest. If you think you may "forget", set it so the payment is electronically transferred each month. Though interest rates of student loans are low compared to credit cards and other loans, it's still a frustrating reality to deal with. But there is hope, if you're making under $65,000 on your own or less than $130,000 if filing jointly you can deduct up to $2,500 of the yearly interest you're paying on your student loan.

If you're simply can't come up with your monthly payment, there are options. Since your salary is only going to grow as you climb the corporate ladder, you can schedule graduated repayment plans with your lender. You start with a low monthly payment that will gradually get larger over the term of your loan. If you're absolutely out of options, you might be able to temporarily suspend your payments. If you lose your job or go back to school for an advanced degree, you can request a deferment of your loan payments. If your request is granted and you have a Stafford loan, the government will actually take care of the interest that accrues during your deferment.

If you can't get a deferment, try forbearance. You can suspend payments for up to a year, though you'll still be responsible for the built up interest.

Check Out Credit Cards For College Students

Beginning college at some far-off university can be a tad intimidating to say the least. Okay, let's be honest; it's down right scary. Suddenly you're on your own, without mom and dad there to bail you out. Bills start to stack up. While rent and food can get pricey, try not to forget about other expenses such as gas/public transportation, the cost of classes, text books and cash for any fun you intend to have on the weekends. Naturally these expenses can get overwhelming for many, but it's crucial to remember one thing. You don't have to do it completely on your own. Sure, you may already have a job and student loans or grants, but don't dismiss the obvious. I'm talking about credit cards for college students. There is a reason why these can come in handy.

The moment you hear the words credit card, you probably assume debt, debt and oodles more debt. This is not exactly the case for college students. Ah ha, there really are some advantages to being a student. While credit cards are notorious for having utterly awful APRs, which are annual percentage rates; many credit cards for college students lack this burden. Yes, you can actually apply for a student credit card that doesn't instruct you to fork out 18 percent every month. It's common for credit cards for college students to have a 0% APR as long as they keep the charged balance below a certain figure. So if you're only aloud to spend 400 dollars or you get hit with an APR of 10-20 percent, you'd better keep the balance below 400 dollars.

Modern credit cards for college students are actually a great asset. You can literally spend money you don't have and simply pay it back down the road, without having to grapple with interest rates. Enjoy this perk while it lasts, because it fails to exist in the adult world. Some sites you may benefit from checking out for student credit cards are creditcards.com, llegeboard.com and chase.com. Just be certain you read through all the fine print before applying for a specific credit card for college students. Sometimes credit card companies attempt to mask additional fees.

Saving Money On Your Student Loan

Anyone that has gone through college knows it cost a lot, which leads to many take out student loans. Just as with any type of loan, it is important that you do your research to find the best student loans for your situation.

Different loans will get you different amounts of money with various circumstances behind the loan. However, there are a few things you can do with any student loan to save money.

With student loans, the interest rate is adjusted every July 1st making it difficult to know how much you really are going to have to owe when getting out of college. There is, however, a way to lock your interest rates to avoid having them raised after a certain period of time.

By consolidating your interest rates you can have them permanently locked for the remainder of your studies. The next thing to look at to help you save money on your student loans is automatic payment. A lot of lenders will offer you incentives and reduced interest rates when you have your student loan payments automatically deducted from your account.

The reason being is that you are guaranteeing the lender that you will be paying the loan on time and in full amount by giving them access to your account. This also makes it more convenient for you allowing you to avoid missing a payment..

The most obvious way to save money with your loan is to be on time. The minute you are late with your payment the interest rates will go up and your credit will go down. If you do feel the pressure of making the payments on time, make sure to talk to the lender before getting too far behind to see if you can work out an arrangement of some sort.

Other Types Of Student Loans

Not all loans for college are obvious. There are two sources for financial aid that are often overlooked. Each of these will be discussed in more detail below.

Parents tend to plan their children's future well before the child is even born. Although mom and dad just know their child will be a genius and will be offered full scholarships, they also try to be ready just in case that isn't quite the case. To that end, many parents will have life insurance and annuity plans in place that will mature in time for their offspring to take advantage of the financial rewards.

By taking out a permanent life insurance plan, it can be paid for in a certain number of years. This type of insurance can then be cashed in and the payout can be applied to the child's educational needs. Parents will also cash in this type of policy and invest it in an interest bearing account thus allowing for a growth fund that will grow as the child ages. As with retirement funds below, some companies allow loans against the face value of the policies that can then be applied to educational expenses.

One or both parents may also set up a retirement fund, such as a 401k. After a period of years, these monies can be taken out, pre-tax and applied to a child's education. Some company retirement funds allow the employee to just borrow against the fund for educational purposes. For tax purposes the Roth plan is also a possibility. To get a clearer picture of how either of these is best used, one should consult a tax professional. By knowing ahead of time the ultimate purpose of this plan, the professional can help direct the individual into setting up the proper deductions.

Federal Student Loans Vs. Parent Loans

Federal student loans have the lowest interest rates and the best repayment options. If you need to apply for a loan and you can qualify for federal loans then make this the top choice.

As a way of limiting your loan responsibilities, only get the funds that you will need and refuse any other offers to raise it. Parents can opt to help their children pay off the loans after graduation.

Federal parent loans or PLUS loans (Parent Loan for Undergraduate Students) can be considered as another option in getting a loan that offers lower interest rates. Parents that have dependent children who are going to start their university education and have a good credit history can apply for the PLUS loan.

PLUS loans are not needs based so you can draw up a loan up to the total cost of your undergraduate education expenses with the other financial aids that you have received deducted from the actual total. One peculiar characteristic of a PLUS loan though is that the first payment for the loan starts about 60 days after the loan is granted.

This is different from a student loan where the first loan payment is deferred until after graduation. PLUS loans also require an application fee. . The big decision to be made is to determine which kind of loan will be the best option for the individual. When deciding on which loan to get you should first determine the amount of debt that your child will need in order to graduate from his studies.

You should also ask yourself the level of responsibility you want your child to assume in paying off the loan. Finally you should sit down with your child and try to work out a repayment plan in paying for the loan.

Student Loan Consolidation Rate

Are you a career-minded student? Aiming is to go for higher studies? But can't go because of the shortage of money. Don't worry student loan consolidation will help you to go for higher studies.

A student can apply online for student loan consolidation, as there are various debt consolidation packages are present. A student can save money by combining student debt loan into one loan with the help of student loan consolidation rates. It will lower your interest rates and will save your time. According to the Education Department, students who are graduated or are still in school may consolidate their government-guaranteed loans -- a step that clears the way of hurdles, were stopped by the high interest rates. Now a student doesn't have to pay high interest on student loan consolidation rate, apply and enjoy LOW rates.

A student has to check some points when he/she going to sign on the loan papers. Carefully examine each and every point written on the papers. Prepare you mind about the student loan consolidation rates. If the burden of paying monthly bills are in your shoulders, than you have to check for the companies who are offering additional services regarding your requirements.

Consider some points for Student Loan Consolidation Plans 1. Give a thorough search before taking any decision on student loan consolidation rates. Choose a lender who is offering low monthly rates and provides good facilities. 2. Try to get only student loan consolidation as for student loans you have to pay differently to every loan provider. Student loan consolidation will take your all tensions in one package. 3. These days, some federal consolidation loans have a fixed rate for the life of your student loan. It's best to do research to see what the best interest rates and term you are eligible for. You can check online to calculate the interest rate on a new student consolidation loan based on the rates of your current student loans. You can then round up to the nearest 1/8th of a percent of the weighted average of the interest rates on your eligible student loans. 4. Federal consolidation rates can give you relief as you can extent your payment period up to 30 years. This way you can focus on your studies effectively and when you get a good job you can pay back all the debts. 5. Student loans consolidation is also made for school going students. This way you can get loans on low rates. 6. With a new student loan consolidation, you may be able to get a much better interest rate. Interest rates are now at an all time low. You may have been paying on debt you built up from several years ago, at high interest rates. Things change over time in the financial industry