Guide For Student Loan Consolidation

Student loan consolidation, also known as student loan refinancing program, can be termed as an effective debt clearance strategy. Apart from clearing the debt, a student can also save a good amount of money through student consolidation loan since this loan is offered at lower interest rates and requires the student to pay lower monthly repayments. However, one needs to consider certain facts while opting for a student consolidated loan.

Financial Counseling:

Consolidation loan is not the only solution for student debt management. There are other viable options that can be used as an alternative. Information about these options is available with the financial-aid office. Hence, it is important for students to consult a financial counselor before considering a student consolidation loan.

Refinancing during grace period:

Federal loans such as Stafford loans provide students with a six-month grace period. This grace can be availed even after the student has graduated from the school. Loan repayment starts only after the grace period has ended. This is the right time to consolidate a student loan as the interest rates during the grace period are far less than the rates after the expiry of the grace period. Once the student is employed, interest rates are determined based on the income.

Lender Initiatives:

So as to sustain in the market and be competitive, several financial organizations and private lending firms offer a variety of packages and promotional offers so as to attract customers. Some of these include reduced interest rates, flexible repayment options, reduction on on-time payments and auto debit option. Since, there are several lending firms providing consolidated student loans, it is better to shop around so as to get the best deal.

Another useful strategy is to opt for a variable interest loan during the initial years. Once the interest rate decreases to a considerable level, the variable interest rate loan can be switched to a fixed interest rate loan. Federal and private student loans should never be combined while opting for a consolidated loan. Under certain exceptional situations, students with Perkins loans are not required to pay back their loan amount if they work for a prescribed number of hours in professions such as teaching or community service.

What Is Bad Credit Student Loan Consolidation?

With the rising costs of education, taking student loans is the only way out for most students who are keen on completing their education. Students take loans at various stages of their education with varying rates of interest applicable to them. As their education continues, these loans pile up, and managing them becomes increasingly difficult for them because of the lack of stable means of income. To help such students - bad credit student loan consolidation comes into play.

Defaulting on loans means that the credit rating of the student would slide down, making it difficult for him/her to get loans in future. The best way to deal with such a situation is to consolidate your loans into one single bundle. Bad credit consolidation makes the loan easier to handle, and the student gets the advantage of having good credit ratings and having a considerably lower rate of interest to pay.

It works by the student surrendering all his loans to a student loan consolidation company. The company repays the loans taken by the student and issues a new one for which the student is obliged to pay monthly installments.

Bad credit is the term used when a student is unable to repay his loans. It comes with a lot of disadvantages and therefore, for getting out of student loan consolidation is the best option available to the student. A student loan would help the student to have a good credit rating, making his funds much more manageable and giving him/her time to repay his/her loan.

Bad credit loan consolidation may be a bit more costly because of the student's tarnished reputation concerning the repayment of loans. However, it is still a good option to go for them since they help in taking the load off the shoulders of the student.

Direct Loan Consolidation

Many people have multiple loans running simultaneously. At some point, it may become difficult to make all the payments on time and manage the loans. Direct loan consolidation is a way to manage these loan amounts in a more organized manner. The borrower can merge all loans and pay one fixed rate of interest on the total amount.

The interest rate on a consolidation loan is based on the average of the interest rates on the loans being consolidated. This is then rounded to the next highest one-eighth of one percent. The rate must not exceed 8.25 percent, and it is a fixed rate that remains the same throughout the life of the loan.

If a person is close to the repayment of the loan, it might not be profitable to consolidate. Consolidation is beneficial depending on the original terms of an existing loan compared to the new terms offered. The factors to consider are monthly payment amounts and variable or fixed interest rates. It is advisable to consult a loan consultant.

Generally, websites also provide online calculators to compare consolidation rates with existing rates. It is also a good idea to check with the existing lender to see if they can offer any better rates before opting for consolidation.

The borrower must also check out the eligibility options. The major benefits that a borrower can gain by opting for consolidation are lower interest rates, flexible repayment options and reduced monthly payments. A borrower can also retain any subsidy that was offered on the old loans.

Consolidating Your Student Loans

Debt from student loans can be crushing to recent college graduates and get in the way of achieving other life goals. Fortunately, there is a way to reduce the strain on your finances and even improve your credit score. Many graduates are turning to loan consolidating to help manage their loan repayments. The procedure and requirements differ from federal and private loans.

Consolidating Federal Loans

Stafford loans and Federal Perkins loans are examples of federal loans. These loans are given to you by the government and may or may have accrued interest while you were attending school. Consolidating your federal student loans provides a fixed-rate refinancing program that takes all of your existing federal loans and combines them into one new loan. Your monthly student loan repayment could be cut by as much as 50% as well as reduce your interest rate by .6% if you consolidate during your grace period. One monthly payment will help you simplify your finances.

Payment relief

By creating one consolidated loan you can receive payment relief, a lengthening of your repayment term from the standard 10 years to up to 30 years. This frees up your disposable income to spend on other expenses like car payments, housing, and work-related necessities. There are no penalties for overpayment, so when the funds become available you can make larger payments and minimize your repayment term.

Consolidating Private loans

Like federal loans, consolidating private loans means lumping everything into one new loan. To consolidate your private loans from undergraduate school you will have to apply with a qualified co-signer in order to be approved. If you have a graduate degree you do not have to apply with a co-signer.

Some of the benefits include reduced interest rates, rate reductions, deferment, and no prepayment penalties. Loan holders may lower your interest rates if your credit has improved. Applying with a co-signer who has good credit could help you get a lower APR loan. There is a grace period for medical/dental residents as well as military personnel if their private student loans are consolidated. As with federal student loan consolidation, you can also have your repayment period extended allowing you to pay the lowest monthly payment possible.

How Much Student Loan Can You Get?

As there are different types of loans offered for studying abroad, for undergraduate students and for graduate students and for studying in US. So, there procedures are different and different principal sum of loan amount can be offered according to the need of a student's educational expenses.

International Undergraduate Student Loans:

This loan is available for non-US citizens who are enrolled at least as a part-time student at a TERI approved school. So, applying with a US co-signer is necessary to get approval for loan, no exceptions are accommodated.

Students need to give information about their Full names, Social Security Number, Date of Birth, Permanent Address, Monthly Rent, Home Phone Number, Occupation, Employer details, Business Phone number, Gross Annual Income, Proof of enrollment, and References.

The international student loan is not need-based so students don't need to worry about it. If the student has bad credit history, he should first review the credit repair options. A qualified co-signer is a must. The time of getting a loan depends on different factors i.e. credit history, school, and amount of loan the student requested for. The maximum of 3% interest rates will be charged for this kind of loans.

Undergraduate Students can borrow up to the lesser of the cost of attendance or $30,000. The total a student can borrow for undergraduate studies is $130,000 overall.

International Graduate Student Loans:

These types of loans are available for US citizens and permanent residents enrolled in TERI approved schools, colleges, and universities in USA who wish to pursue study abroad programs through those schools.

Information required is same as for the Undergraduate Student Loans. This is also not a need-based student loan program. If student has bad credit history, he can go for credit repair options first. Qualified co-signer is required as well. Up to $40,000 can be given for a year of student's education in special cases and total up to $130,000 will be given for graduate studies abroad.

Alternative Student Loans:

These loans are for US citizens and permanent residents attending schools, colleges, or universities within the USA or international students with a US citizen co-signer. A co-signer is strongly required for both US citizens and non-US citizens. And both the student and co-signer must have good credit history.

Information required applying for these loans are similar to those for International Loans. These types of loans are also not need-based. Credit review options must be viewed before applying for loans with bad credit history. Maximum 3% interest rates will be charged on these kinds of loans.

Per academic year, a student can be assigned up to $30,000 with a maximum of $130,000 overall for graduate or undergraduate studies.

Bad Credit Bill Consolidation Loans

Bad credit bill consolidation loans can offer fast debt relief. Bad credit bill consolidation loans are easy to qualify for and can reduce debt and expenses, freeing up your hard earned money for more than just interest payments and penalties. Your bad credit rating does not hinder you from qualifying these loans that can change your life.

Bill Consolidation Works

Bill consolidating works by paying off your high interest debt using a single loan that with better terms and a longer repayment program. By extending the length of you can wipe out any short term high risk debt that is keeping your bills at break neck rates.

Consolidating your bills also helps you to improve your credit score. Your credit is negatively impacted by having too many open credit lines, and consolidation of your bills will put you on track to improving your bad credit as you more easily maintain on time payments and pay down your debt.

With discipline and hard work bill consolidation will help you reduce your debt, improve your bad credit and get your finances back on track. A sound commonly used approach is to use a bill consolidation loan to lower your monthly payments and apply your additional funds to paying down your loan even faster than you would have otherwise.

Any short term bad debt that you carry, can benefit from being paid off with debt consolidation. Commonly credit cards, payday loan debt, or high interest personal loans can all have their payments dramatically reduced when you move over to a longer term consolidation offer.

Get a Free Customized Debt Solution Today

If you are over burdened, drowning in your current bill burden, simply check out what these consolidation lenders have to offer. They offer free no obligation offers on how bad credit bill consolidation loans can help reduce your costs and save you money on your monthly bills. With a few details regarding how you carry your current debt, these lenders will customize an offer just for you, you will probably be surprised at how much you can save.

Student Loan Consolidation Advice

Student loan consolidation is an effective and convenient debt management strategy highly beneficial for students who have defaulted with the student loan repayments and are willing to get their credit history back on track. However, student loan consolidation is always the last option to be considered when a student is trying for debt clearance.

Listed below are certain facts that one has to take into consideration before opting for student loan consolidated.

Consultation with the financial-aid office: Various student loan programs have interesting options for debt clearance. For example, in case of Perkins Loans, one can reduce the loan amount by doing some community service for certain number of hours. Also, physically challenged students have separate concessions. All this information is available with the financial-aid officer in your school. One needs to have a financial counseling with the officer before opting for consolidation.

Taking advantage of the grace period: Federal loan programs such as Stafford Loans offer a 6-month grace period to students who have just graduated from the school. Within this period, the student is expected to get employed and become financially independent so as to start the loan repayment process. According to market experts, this is the right time to apply for a student loan consolidation. Interest rates are really low during this period. Once the grace period ends, interest rates are determined based on the income of the student.

Never combine federal student loans with private loans: One should never combine private loans like credit card debt and car loans with federal student loans while opting for loan consolidation. Private loans come at a higher interest rate and do not carry the same type of benefits like a federal loan. Hence, consolidating a private loan with a federal loan would increase the overall interest on the loan.

Lender initiatives: With the objective of wooing customers and also to withstand competition in the market, lenders offer attractive loan packages. It is important to take advantage of these lender initiatives. Information about these initiatives can be obtained by shopping around and getting quotes from multiple lenders.

Risk of Consolidating Federal and Private Student Loans Together

No matter how desperate you are to consolidate your student loans, you are reminded not to consolidate both your federal and private study loans together. It is a very bad idea to combine them for the following reasons:

· You have the freedom to further your studies in future even you have consolidated your federal loans. However, once you lump both federal and private loans, it is totally not possible for you to defer your payment if you want to go back to school.

· You are not able to save cost when you consolidate both types of loans together. You are not allowed to claim interest as a tax deduction on a private loan consolidation.

· No matter what line you are in, it is not possible for you to apply for forgiveness on a private loan consolidation. However, you stand a higher chance to waive your federal loan if you are working in certain sectors like military service, teaching in economic development zones, joining federal volunteer programs, etc. Under certain circumstances, the government is willing to dismiss part or all of your federal loans. If you consolidate both private and federal loans, you will no longer enjoy this benefit.

· The interest rates for federal loan consolidation plans are always much lower than private ones. In order to enjoy lower interest rate, don't ever try to combine both loans. In general, the interest rates for private loans are variable and it is hard for you to lock in for today's current historic low rates.

Last but not the least; you are advised to consolidate your federal loans first so that you are able to eliminate part of your debts. For there, you can boost your credit score gradually. By doing so, you can eventually obtain a better term for your private loan consolidation in the near future.

Finding The Best Student Loan Consolidation Lender

A consolidation loan is a gathering up of all the loans you have taken with various student loan lenders and paying them all off with a loan from a consolidation lender. So, instead of having a number of creditors, each with a different amount due, each with a different day of the month due, and each with a different interest rate; you can have one bill due per month.

Finding a Student Loan Consolidation Lender

Choosing the wrong consolidation lender could potentially ruin your monthly budget and that could lead to late payments, late fees, even default. Late payments or defaults will cause very bad marks on your credit history and that is not the way you want to start life in the real world. The following guidelines should help.

Private Vs. Federal Student Loan Consolidation Lenders

If all your original loans were taken from federal sources, you would be wise to seek a consolidation lender who works under the auspices of federal student loan programs. These lenders usually are more convenient because of their understanding of federal student loan programs. They also tend to offer lower interest rates than private student loan consolidation lenders.

On the flip side, if the loans you wish to consolidate are from private student loan lenders, you should probably opt for a private student loan consolidation lender. When asked to consolidate non-federal loans, federal loan consolidation lenders will not usually come up with the best interest rate. It is always wise to shop around and compare rates and fees.

Another consideration is that private lenders tend to exert more requirements than federally connected lenders. Private lenders base their approval process on credit histories. Having just graduated, you may not have much credit history. Because of this, the lender may request a cosigner. His or her credit history will be scrutinized.

Interest Rates

Private student loan consolidation lenders tend to determine interest rates based on two factors: Your credit rating and the interest it allows along with the market rate this type of loan is presently demanding. The higher your credit score, the lower the interest rates. Shop around, various lenders will calculate interest rates a little differently.

Private lenders may offer you a consolidation loan with variable interest rates, determined yearly by the caprice of loan markets. You would do yourself well to find a lender willing to grant a loan based on a fixed interest rate so you avoid the loan market fluctuations.

Most federal lenders will calculate an interest rate that is a weighted average of the individual interest rates you are now paying to each company.

Terms and Conditions

Just as as you must when seeking any type of loan, you should keep your eye on certain considerations.

Loan Amount: Do not agree to a consolidation loan if it will not completely retire all your outstanding student loan amounts, including any odd fees or adjustments.

Fees: These are often determined by your credit score, or the score of your cosigner. They are usually referred to as application fees or origination fees.

Deferment Time: This is the time between the satisfaction of the amounts owed the various lenders and when you must start payment to the consolidator. The longer the better.

Maturity: This is the amount of time the lender will give you to satisfy your obligations. The larger your monthly payments, the sooner you can retire the debt. Of course, the lower your monthly payments, the longer you will be in debt and the more interest you will pay.

Cosigner: If at all possible, try to avoid having a cosigner. This further complicates the process. Sometimes it is hard to find a trusted individual who is willing to assume the responsibility.

How Student Loan Repayment Programs Can Help You Pay Off Your Student Loans

As the fall semester gets started, students may be struggling with tuition bills, program fees and other education-related expenses like books and lab materials. When parents need some help meeting their student's educational expenses, a PLUS loan could provide the financing they need. It's also a good time to consider student loan consolidations to lower monthly payments on existing, non-subsidized student loan repayment programs.

Federal student loan consolidation is available for Stafford, Plus, Perkins, Heal, NSL, HPSL and all of the Direct Loans. You can only consolidate the loans that are not in default, so you must first take care of the defaulted loan in order to put it into the consolidation.

There are really no disadvantages to consolidating student loans. The one disadvantage that we are aware of has to do with the Federal Perkins Loan. Perkins loans are typically subsidized by the Federal Government while in deferment while the student is still in-school. When you consolidate a Perkins loan it loses that subsidization.

The advantages of consolidating a loan are only one monthly payment, usually fixed rate which is advantageous if rates are low and loan terms up to 30 years depending on the balance. This can lead to lower monthly payments overall. If you have a Stafford loan, you should consider consolidating during your grace period as the loan repayment is .6% lower than it is in repayment.

The Stafford loan has these repayment options:

Standard repayment is where the principal and interest payments are due each month throughout the repayment period.

Graduated repayments are smaller at the beginning of repayment process and increase at specific periods and in specific amounts over the term of the loan.

Income-based repayment takes monthly loan payments based on a percentage of the borrower's monthly gross income. StaffordLoan.com offers an income-sensitive repayment plan.

Extended Repayment provides eligible Federal Stafford, Federal PLUS and Alternative loan/Federal Consolidation loan borrowers payment relief through a lengthened repayment term of up to 25 years.

Serialization is when the loan holder purchases your loans held by other institutions and services them in one account. You make one monthly payment but retain the original terms and interest rate.

With the student loan repayment programs, the consolidation program should be seriously considered. The borrower may refinance multiple loans and original loan amounts are paid in full and a new loan for the combined balance is originated, with a new loan term and usually a new interest rate.

Student Loan Consolidation can lower your rates by 60% whether your loans are federal loans, private loans, parent PLUS loans, or Stafford loans. It is important to take advantage of federal financial aid before turning to alternative financing options such as private loans. Refinancing your student loans will reduce your monthly payments and lock in a fixed interest rate. When you consolidate student loans you are refinancing your existing student loans and rolling them into one single manageable loan.

Unsecured Debt Consolidation Loan: Settle Your Debts Without Collateral

Whether you are a homeowner or a tenant, student or professional, you might have borrowed money to meet your expenses. Now you are looking for financial assistance to repay your debts without using any collateral. People seeking such financial support without providing any collateral can go for unsecured debt consolidation loan.

Unsecured debt consolidation loan is meant to consolidate debts of the borrower by providing financial support. The borrower does not have to keep his house, car or any valuable assets as collateral against the loan.

With the help of unsecured debt consolidation loan, a borrower can borrow amount according to one's requirement. The amount that a borrower can borrow in consolidation debts generally ranges from £ 5, 000 to £ 25,000, which he has to repay within the repayment period extending from 5-10 years.

In unsecured debt consolidation loan, borrower is required to pay lower rate of interest. Lower rate of interest means lower monthly payments. For a better rate of interest borrowers can take the help of a free loan quote, which will provide the cost of the loan for your condition.

Unsecured debt consolidation loan is an ideal choice to settle miscellaneous debts borrowed from different sources. Credit card bills, personal debts or any unpaid debts can be consolidated into one manageable loan.

If you are having bad credit history, just relax and apply for unsecured debt consolidation loan. CCJs, bankruptcy, defaults and such other bad credit holders can take the advantage of the loan any repay their debts.

For the suitability of the borrowers unsecured debt consolidation loan is made available online. The online application process is convenient for those who are looking for instant approval of the loan to meet their requirements.

Unsecured debt consolidation loan facilitates the borrower to consolidate debts and also to meet his requirements in one package. It also helps to improve borrower's credit score.

Are Their Student Loans For Undergraduates?

Normally, students tend to rely on federal student loans to finance their education as they provide a variety of deferment options and extended repayment terms. The most beneficial student loans include Stafford and Perkins loans with the opportunity for the undergraduates to get these loans as well.

Federal Student Loans for Undergraduates

Stafford Loan

These loans have two variations:

Federal Direct Student Loan Programs are the ones which are administered by direct lending school and the US government makes them available directly to the students and their parents.

Federal Family Education Loan Program are the ones provided by the private lenders like banks, credit unions etc. Such loans are guaranteed against default.

Effective from July 1, 2007, the Stafford loans have allowed the dependent undergraduates that they can borrow up to $3,500 for their freshman year. They can borrow up to $4500 in their sophomore year. However, there are some cumulative limits of $23,000 for undergraduate education. They also offer a combined limit of $65,500 for both undergraduate and graduate.

Effective from July, 2008, the interest rates on subsidized Stafford loans have been reduced according to The College Cost Reduction and Access Act of 2007. These interest rates are applicable only for undergraduate students and only for subsidized Stafford loans.

Interest rates on the subsidized federal loans for graduate student will remain same at 6.8%. But in case of undergraduate students, there are many fluctuations expected in the interest rates of Stafford loans.

Repayment in case of Stafford loan begins after six months when a student graduates or drops below the half time enrolment. The total repayment period is 10 years. However, you can have alternate repayment terms on consolidation the loans.

Perkins Loans

Perkins Loans are awarded to all graduate and undergraduate students who are in exceptional financial needs. This is considered as a campus based loan program in which a school acts as the lender and makes use of limited funds they get from the federal government. Perkins Loans are subsidized loans as the interest rate is paid by the federal government while you are in school or having 9 months grace period. With Perkins loans, you have to pay only 5% interest rates with a 10 years repayment period. The amount you can receive under Perkins Loans is decided by the Financial Aid Office which is $4,000 per year for undergraduate students. Cumulative limits for undergraduate loans are $20,000 and $40,000 for undergraduate and graduates combined.

Pell Grants

Pell Grants award $4,310 per year to undergraduate students who have not earned their university degree yet. Eligibility for undergraduate student loans with Pell grants is based upon the Expected Family Contribution which is calculated on the form of FAFSA.

Private Student Loans for Undergraduates

There are lots of private lenders which offer loans for undergraduate students to help them complete their studies. Access group is the best choice for undergraduate students who are seeking loans to pay for schools. The Comprehensive Access Loan is basically designed for the undergraduate students although it works for other students as well and allows you to complete your program or degree at your own pace. If you remain enrolled at least part time, you have a repayment period of 10 years. With these loans, you get a nine month grace period after you complete your graduation or stop attending school.

To get approved for such loans you need:

To earn a minimum credit bureau score.


To have three years of US Established credit history in your name. Also you must include in it 4 non-student loan trades at least one opened for 36 months.

Debt Consolidation Loans: Your Best Solution To Your Financial Problems

If you find that you are deep in a financial crisis and are unsure just how to relieve yourself of this problem, then perhaps the best option will be to apply for debt consolidation loans. You can benefit from these types of loans as they will provide a solution to your outstanding debts. If you can qualify for the loan, then it can be to your advantage to consider applying for one. Here are some of the benefits that you can expect from this kind of loan.

The main purpose and process of this type of loan is that you shall be able to take out one loan so to pay off all of your current debts of your accounts. There are quite a lot of people who have several credit cards and other accounts that have balances on every one of them that will need to be paid. With the use of a consolidation loan you will have the ability to resolve this problem of being in debt by consolidating everything into just one source.

This shall eliminate the worry of which debts to pay off first, you shall simply have all of your debts put together as one account and you will only have one monthly payment to make so to clear up all you may owe out to the creditors.

One good thing about this type of loan is that in most cases you will find that the payments will be much smaller due to the fact you can be provided with a payment plan that is designed for you to pay over a longer period of time.

Another great benefit from these loans are that they will help you save as the interest rate is lower than most other types of loans. In many cases there are many people in debt due to the misuse of their credit cards and these cards are known to have a very high rate in regard to the interest that is paid on them. By with the consolidation loan you will be paying a lot less interest, which helps you to save money on your monthly payments.

Being in debt can create many problems for people, such as stress. However, with this type of loan you can help to eliminate the stress that builds up when falling deep into debt. When you find yourself always worrying about the debts you have, this loan will help you to function more better and concentrate more on getting yourself away from debts.

If you are interested in this kind of loan, then you certainly will find many online lenders who can provide you with this type of financial assistance. There are some requirements you will need to meet such as being at the age of eighteen, have U. S. Citizenship, proof of income and a checking account. If you meet these requirements, then you shall have no problem applying and being approved for this loan.

One other good benefit is that with this loan, you shall be able to improve the credit score. If you have made many late payments on any accounts, then this will certainly hurt your score but with the debt consolidation loan the debt shall be placed into one payment, making it easier for you as you rebuild your credit again.

Student Loan Debt Reduction

Student loan debt reduction primarily recognizes a student borrowers' lack of ability to put down a full payment on their outstanding student loans or borrowings. Those students who have completely exhausted their interest relief under the program for Interest Relief may qualify for debt relief. Also those students who have been out of post-secondary studies for at least five years can qualify for a student loan debt reduction. This helps these students to thereby reduce the loan principal to a level that is slightly more affordable.

If the case is such that annual payments, on an average, are exceeding fifteen percent of the income of a family, then the principal amount of the student loan can be reduced. The maximum amount of assistance that can be given is the lesser amount of up to half of the loan amount, or up to ten thousand dollars. The eligibility criteria that must be met by a student who wishes to avail the student loan debt reduction are multifold. To avail a reduction it is required that the borrower must have completely exhausted all the available interest relief. The period for the borrower to repay the loan must be at least fifteen years and his or her loan must be in good standing. It is also required that the borrower must be able to demonstrate that he or she has an income that is robust and consistent enough to support the payment, post-reduction.

The student loan debt reduction is in place in an effort to recognize the rising need for trained professionals in underserved communities in the United States. This loan debt reduction comes as boon to those students who are under the intense financial burden of loans coupled with rising academic competitiveness and pressure of studies. Now more students can look towards higher studies and a promising career without the fear of large loans and repayment issues.

Bankruptcy and a Federal Student Loan

If you are looking for information on bankruptcy and a federal student loan then you have come to the right place. You may feel that your federal student loan is making your financial life hell at the moment but it does not have to be like that. Bankruptcy is and should always be a last option. What will happen if you decide to go bankrupt though is not as bad once you think about it. It means that you will have a totally fresh slate financially. Although you may be marked by a few financial organizations for a couple of years and will struggle to get money from banks lent to you.

Firstly the main thing that you need here is communication with your federal student loan company. If you do not talk to the they will not know what you want and lots of people do this. Do not be one of them and you will find a way through this difficult financial time. Talk to them and mention your financial woes and that you may even consider bankruptcy. Because they will definitely get no money if you go bankrupt because you start over again they will let you pay at a highly discounted rate just so they get something from you. Sad but true.

Then when you have completed this stage you might want to look into something like debt consolidation. This is where you get all of your student loan and other debts that you are struggling to pay and you give them to a student loan debt consolidation organization and they pay it off for you and you pay one single monthly payment over time. The charge is surprisingly small too.

Does a Debt Consolidation Loan Harm Your Credit in Any Way?

Many of us today depend on debt consolidation loans to help prevent bankruptcy and to help eliminate our outstanding debts and dues. There are a handful of us who are afraid to invest in this service despite the urgency because they are unsure if this would damage their credit in some way.

Debt consolidation loans are used to pay off small loans with high interest rates. It's important to note that the goal of taking this loan is to manage your finances effectively while wiping out the stack of bills on your desk. Also, it's to enjoy lower interest rates which would save a lot of money and to obtain some sort of monthly payment scheme with a due date extension.

Generally, getting a debt consolidation loan won't harm your credit score in any way as long as you stick to the terms agreed by yourself and the creditor. Pay your monthly dues and keep track of deadlines and you would be able to protect your credit. But, there are several cases in which you could bring your credit down as well. In example, a debt consolidation loan will convert an unsecured debt into a secured debt. If something were to come up and you aren't able to make a payment on time, a report will be filed our against your credit score.

Furthermore, the whole point of debt consolidation is to get an extension on your payback time. if you don't get a zero percent interest rate, you would be at the risk of paying a higher interest with the time extension. With more money being required, you could very easily fall into bad credit as well. Also, there is a reason as to why you're in debt now, right? If you don't fix your spending habits immediately, chances are that you would make you financial situation worse which would show up on your credit as well.

Keeping a clean credit is indeed very important when it comes to applying for other loans and jobs as well. If you don't have a good record, you would be denied from many great job opportunities. So take charge of your finances now.

Pay Off Student Loans - 3 Tips For Quickly Paying Off Your Debt

Looking for ways to pay off student loans? After you complete college, you main focus is gaining adequate employment in your chosen field. But for far too many, the stress of paying off college debt is exhausting. Entry and mid-level positions often times simply do not pay enough to quickly pay down student loans; especially when you factor in the cost of living. Thankfully there are a few solutions to help you pay down your student loans.

One is the Income Based Repayment plan (IBR). What happens is government loan officers will look at your current income and come up with a repayment plan that you can afford. People with graduate degrees often have monthly payments of over $1000. With an IBR, that payment can drop down to $300. Another upside to the IBR is if you choose to work for the government, a non-profit organization or as a volunteer, after certain amount of years you may be eligible for loan forgiveness programs, where your loan amount and any interest accrued will be forgiven.

Another option is to apply for as many scholarships and grants as you can. This is money that you don't have to pay back. Also if you work, see if your employer offers any type of tuition assistance. Many companies do, especially if the field you are studying is relevant to your current position. If you don't work, get involved in a work-study program. These jobs are usually a part of your financial aid package and the work is conveniently located on campus. Whether you work on campus or through a private employer, try to save at least half of your income in a high-interest savings account. That money will really come in handy at the end of your college education and you can apply it to your student loans.

Then there is loan consolidation. Sometimes the method of consolidating college loans gets a bad rep. But the negativity comes from programs that charge a high interest rate to consolidate. An easy way around this is to do your research. Find the best student loan consolidation program, offered at the best rates. Get quotes and be sure to read all the fine print. The only bad thing with consolidation, is usually once you go this route, you will not be eligible for any type of loan forgiveness program.

Paying off student debt is a hassle. But if you research all the opportunities available to you, you may be able to pay off student loans sooner than you expect.

Student Loan Consolidation - Get Rid Of Your Financial Problems

Student loan consolidation facilitates you in making 50% less monthly payments of what you were paying originally. Within just few steps, you can save a lot and fulfill your other desires. The few steps involved begin with the application form, which is further submitted and verified, and then you relax by leaving all the work on us. After all this, you only have to remember the date when the repayment of the student debt consolidation is to be made.

In the situation when the cost of education is growing higher and higher, the best option is to get the loans consolidated and bear the loan at low rate of interest, which is fixed until the loan exists. Consolidation program makes your life easy and stress free. You do not have to think of any other option when there is this option available.

With this program, your amount is extended to a period of 20-30 years and is repaid by making small monthly payments. Yes, low monthly payment is an important and attractive feature of debt consolidation. For choosing a lender, you need to do lots of research and select a genuine lender who offers good services and gives proper advice.

Applying for these loans can be simply done by filling an online application form and the lender does the rest. You only need to follow the steps as asked by them. For the repayment of the borrowed amount, you are expected to start the payment within 6 months after seeking the loan. Before filling in the application, collect the following information, which might help in quickly filling up the form. All you need is your personal information i.e. your date of birth, phone number, address, driving license etc. then some references along with their addresses and also the interest rate and the loan type.

Student federal loan consolidation helps the student a lot. Even when the borrower is unemployed, he can borrow the amount but within the limit of $1000-$30000 from the loan providing company. Such loans are easily approved and do not involve any credit checks or proofs. In case you are not able to arrange to make proper payments and then look for counseling, where you can get an advice, which could solve your issues in few minutes.

If a student is looking for a consolidation, then he can do it as soon as he leaves school or is enrolled for lesser than half course. Besides that, he can apply if his/her graduation is completed.

So, next time you want some more cash in your pocket then consolidate your loan with a quick online application.