Student loan basic

Brief Introduction to Student Loans

Today students are facing a variety of problems in the education system, one of the major one is rising of fees and expenses for the students while pursuing their education. With specialization becoming necessary in every field of work the students are required to go more rigorous studies and need to work harder and with better institutes so they require money. As the education costs are skyrocketing today the need for student loans has become one of the major options for students to support and finance them during their early years of professional life.

Many of the students are taking these loans to even for their personal interests such as accommodation, accessories and technology to help advance themselves and so that they have a better edge at their work.

Eligibility Requirements:

So you think that the burden of many student loans is too much for you and you need to get student loan consolidation. You need to get more peace of mind, and it is very hard to manage all the loans separately. Student loan consolidation is the right choice for you. It is very helpful and is used to combine numerous loans in to one single loan, so also the hassle of many administrative fees is reduced. Not to mention the lower rates of interest and peace of mind.

There are certain eligibility criteria to get student loan consolidation, they are as follows:

1. To qualify for the student loan consolidation program you must have one government loan (that is either federal or direct loan) which is in repayment period. School status loans cannot be considered for direct loan consolidation.

How To Effectively Uuse Student Loans

After graduating the first thing you would like to do is to get rid of all the unnecessary debts that you have taken during your college, but still earning is not quite easy and it is hard to re pay the loans suddenly. As the debt which has been accumulated over the years is much large, this will hinder in paying it back easily. There are many instances where the students are just paying the interests and still their principle amount remains the same, so to avoid such a situation you need to effectively use student loan consolidation.

Normally students get a grace period of about some 6 or 12 months to start paying the loans but job are not easily available and require much hard work to get a decent salary, so to meet the requirements paying the loan back on time is very hard.

Investing For Your Future College Student Loans

College student loans means financial aid provided to the individual for the study in college, mainly are used tp pay the college fees and expenses. These loans are required to be paid back to the creditor by the end of term which is after he has found a job and finished his education.


The expenses for a student in college ranges from thousands of dollars on average so you can just think how a student can get huge sum without any help, so here the student loans come in to play.

There are several types of student loans available, the main types are

1. Federal Student Loans
2. Private Student Loans

Pros And Cons Of Student Loan Consolidation

Student loan consolidation is a basically financial facility for the students and helps them repay their debts or student loans faster. It simply means to merge all the loans of a student and combine them into a single loan, which may be at a lower rate of interest so as to help the student. Like any other system each has some flaws and some advantages here also there are many pros and cons of student loan consolidation. The following are the pros and cons:

The advantages of student loan consolidation:

The creditor bank gets the full principle amount at once and so it I very advantageous to the banks, but as we al know the number of people filing or bankruptcy are becoming more and more by the day, so the creditor may be in loss due to that.

Student Loan Consolidation Checklist

For getting Student loan consolidation you need certain items to be in your checklist and all these after being taken into consideration only you should go for student loan consolidation. Make sure you have complete information on your student loans, have all the student loan documents ready, and only then contact your current lender (loan provider). There are certain companies that provide more comprehensive information about student loans and more knowledge about the loan services.

There are certain facts that you need to know about Student loan consolidation,
Firstly make sure that the monthly payment amount is acceptable, it is based on current interest rates and you can know about that by contacting your Student loan provider.

Top Five Reasons For Consolidating Your Student Loans

So did you consider consolidating your student loans there are many reasons for that the top five reasons to consolidate your student loans are discuss,

1. Lock in a low rate of interest than the earlier rate of interest, so you can get much lower monthly payments ant thus reducing your burden. You can reduce the payment by as much as 60%. So you can have better peace of mind and can focus on more important aspects of life as well.
2. Improve you credit limit by consolidating your loans so that a lender pays them and you can even reduce the total number of loans by reducing the number of loans and so you can be tension free for stellar credit. Even the U.S. government is taking guarantee of the loans.
3. You can streamline all your loans in to a single loan payment so you can combine all the multiple loans which you have taken and then you can merge them to a single loan.

What Exactly Is Student Loan Consolidation?

“Student loan consolidation”, it is a very good method to pay back the loan fast and effectively so to reduce their burden in their adult life and so that they can live a more carefree and peaceful life. Student loan consolidation is a basically financial facility for the students and helps them repay their debts or student loans faster. It simply means to merge all the loans of a student and combine them into a single loan, which may be at a lower rate of interest so as to help the student. Student loan consolidation is given by certain people and firms, they are known as student loan consolidators.

Student loan consolidators are people who have better relations with the financial institutes and so they can negotiate with them for lower interest rates and so that the students can get better rates and more flexible payments modes.

Student loan calculator

Interest Rates For Student Loan Consolidation

So you have decided to get a student loan then you also need to know all about the interest rate and the ways to reduce them for the benefit of students using student loan consolidation. If you are planning to get a very low rate first you need to do a market survey according to your region and see that which the lowest available rates for your area are.

Then keep in mind the rate which you prefer and can afford, normally each year the government changes the rates of interest and this is really a variable so you need to get the latest rates whenever you want to go for student loan consolidation. It is well recommended that before going for any plan you need to know exactly about your current rate of interest and terms and conditions of service.

Student Loan Calculators

One of the most significant tools for students to calculate their loans and so that they know what they are paying for their education and how much was it worth. As in today’s market getting a job is very uncertain so to even after getting a good education and not getting a job will make it a serious problem if you would have studied on loans so you will also need to repay them as it may be big burden to be qualified unemployed and to top that in debts, some firms even take advantage of this and give less pay to desperate people so you need a student loan calculator to make sure that you can plan how to repay the loan and not get in further debt.

To get started using a student loan calculator you need to know all the basic information about your loans in detail, in general the calculator will require the following things:

Types of student loans

Federal Family Education Loan Program

There are mainly major federal loans which are granted to the people, one of this is FFEL or Federal Family Education Loan Program which was first introduced in 1965, by the Higher education act. It is mainly funded through public and private partnerships which are both at local and national level. This Federal Family Education Loan Program is accounted for more than 80 % the federal loans. These are helping more and more Americans go to the college and have a better life. Till date more than 50 million American students have been helped by the Federal Family Education Loan Program.


The types of loans in Federal Family Education Loan Program are as follows:

Stafford

Government Student Loan Consolidation

Government student loan consolidation is a very good option for the students as they will be having the least interest rates and will be more beneficial to the students, it is irrespective of whether you have graduated or are still undergraduate. Government student loan consolidation plans have lower monthly payments, but the term may be longer. Now days the interest rates are very good, low that is and very helpful for the students. So go for it before the rates rise and take a market survey also so you can get the loan when the rates are least.


Some of the major pros of the Government student loan consolidation plans are:

• These are very ideal for those who have faced difficulties in paying back the loans.
• All your payments can be easily combined into one monthly payment with lower rates of interest.

Student Loan Consolidation Plan Categories

You can opt for any student loan consolidation plan according to your liking; there are basically four categories that you can choose from, the four categories are:

1. Standard Student loan consolidation plan
2. Extended Student loan consolidation plan
3. Graduated Student loan consolidation payment plan
4. Income contingent Student loan consolidation plan


Standard plan: This plan is offering a fixed rate of interest for short periods of time, up to maximum ten years. It requires monthly payments of $50 minimum in the time period allotted.