Dec 29

Why Student Loan Consolidation?

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Why Student Loan Consolidation? Due to the rising cost of higher education, a large number of students have been forced to finance their education by getting student or education loans. While student loans are easy to get and come with the cheapest rates of interest, paying them off is not so easy for the vast majority of students who find themselves facing mountains of student loan debt.

People generally find it tough to pay back student loans because the loan installments are not calculated keeping in mind other types of student loan debt. Most students also accumulate a number of other loans like huge credit card bills and car loan, which also require financing upon graduation. The best way of getting out of this kind of debt trap is to go in for student loan consolidation. A student loan consolidation program can be a lifesaver for a student and can totally turnaround a negative student loan debt situation to one of good fortune.

There is no logical reason not to seek out student loan consolidation. By finding a student loan consolidation program that meets their personal student loan debt needs, students can avoid defaulting on payments which will leave a permanent red mark on life long credit history. This would make it difficult to get any kind of financing when necessary in the future. On the other hand, by undertaking student loan consolidation, there is the opportunity to easily reduce student loan debt or in some cases eliminate the student loan debt while obviously at the same time streamlining finances and budget. Most student loan consolidation programs also offer credit counseling, which will help you in managing your finances wisely in the future.

The student loan consolidation company pays off all of the student loan debt. This means that the student loan consolidation program payment will be the only payment obligation and can be paid off in easy monthly installments. Students have the option to pay back student loan consolidation charges over a period ten to thirty years. With student loan consolidation, student loan debt has been reduced or eliminated with future obligations becoming due at a time when more earning power is likely. To apply online for student loan consolidation where student loan debt lenders compete and where students can lower their monthly student loan debt payment up to 70 %, students visit: Studentdebtconsolidationprograms.com

Student loan consolidation programs are presented with the goal of reducing student loan debt with students in mind.



By: Student Consolidation

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Dec 29

Student Loan Repayment 101

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Unless you plan on being a student the rest of your life, student loan repayment is inevitable, and the ins and outs of student loan repayment can be confusing and overwhelming. The financial advisors at NextStudent, a leading Phoenix-based education funding company, would like to help clear the murky waters by defining terminology and laying out your student loan repayment options.�

Understanding Your Student Loan Repayment Options

A grace period is a pre-determined amount of time allotted to student borrowers after they leave school or drop below half-time enrollment before they must begin repayment of their federal student loans. Grace periods vary in length based on the type of student loan: Stafford loans have a grace period of six months; Perkins loans have a grace period of nine months. PLUS, Grad Plus and Federal Student Loan Consolidation loans have no grace period.

Deferment allows you to temporarily postpone your student loan payments (in most cases, up to a total of three years over the life of the student loan) if you’re unemployed or experiencing economic hardship. You can also request in-school deferments on your federal student loans while you’re enrolled at least half time.

While you’re in a grace period or in deferment, the interest on your Perkins and subsidized Stafford loans will be paid by the government. But you’ll be responsible for the interest on your PLUS, Grad PLUS and unsubsidized Stafford loans—any unpaid interest that accrues on these student loans during grace and deferment periods will be added to your principal loan balance for you to repay once repayment starts or resumes. If you want to avoid interest being added to your principal loan balance while you’re in a grace period or in deferment, you can choose to make interest-only payments during that time.�

Forbearance also allows you to temporarily postpone your student loan payments. When you’re in a forbearance period, you’ll have to pay any interest that accrues, even on Perkins or subsidized Stafford loans.��

Repayment Plans

Perkins, Stafford, PLUS and Grad PLUS loans have a standard repayment period of 10 years. If your standard monthly payment amount is higher than you’d like, you have three other repayment plans you can choose from that may make your monthly payments more affordable:

Extended Repayment is available to you if your federal student loans total more than $30,000 and if you received your first federal student loan on or after October 7, 1998. Depending on your student loan amount, you could extend your repayment period up to a 25-year term.

Graduated Repayment allows you to make lower payments at the beginning of your repayment term and gradually increases your monthly payment amount over time.

Income-Sensitive Repayment bases your monthly payment amount on your monthly income. You have to submit documentation of your income to qualify, and you have to requalify each year.

Student Loan Consolidation

If you’ve taken out any federal student loans, you’re eligible to apply for a Federal Student Loan Consolidation from NextStudent, which might give you more time to repay your student loans and could substantially reduce your monthly student loan payment.

The repayment term on a student loan consolidation will range from 10 to 30 years, depending on your total outstanding student loan amount. Student loan consolidation loans generally have the standard federal deferment and forbearance benefits.

When your student loan consolidation is in deferment, the government will pay the interest on that portion of your student loan consolidation loan that was originally a Perkins loan or subsidized Stafford loan. During deferment, you’ll only be responsible for paying the interest on that portion of your student loan consolidation loan that was originally a PLUS, Grad PLUS or unsubsidized Stafford loan. When your student loan consolidation loan is in forbearance, you’ll be responsible for paying all interest that accrues.

You can consolidate one or more qualifying federal student loans and take advantage of one easy-to-manage loan with a single monthly payment. Our online applications are fast and easy, and there are no fees to apply for a student loan consolidation.

NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.



By: Jeff Mictabor

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Dec 21

Student Loan Consolidation: Replace your Variable-rate Student Loans With One Fixed-rate Loan

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If you’re a parent or ex-student who took out any Federal PLUS Loans or Stafford Loans prior to July 1, 2006, those student loans are subject to variable interest rates that will adjust every year. When interest rates rise, your monthly student loan payments may also go up. If you’re on a tight budget, higher monthly payments may prove difficult to manage. Do you wish, instead, you could have a set monthly payment for your federal student loans that you know would never change? Student loan consolidation may be for you.

Federal student loan consolidation gives you the security of a fixed interest rate. By consolidating your federal parent student loans, you’ll replace your variable-rate college loans with a fixed-rate consolidation loan, so you’ll never have to worry about interest rates rising and leaving you guessing about your monthly payment amount.

Take the Hassle Out of Repaying Your Student Loans

If you have multiple college loans in repayment and you’re juggling multiple bills, multiple due dates, and multiple monthly payments to multiple lenders, a student loan consolidation could help make your repayment easier to manage. With a student loan consolidation program, you can bundle all your eligible federal parent or student loans into one single consolidation loan with just one monthly bill and one monthly payment that’s fixed for the life of your college loan.

Cut Monthly Payments on Your Student Loans by up to 40%

Besides offering you convenience and the security of a fixed interest rate, a student loan consolidation could also help you cut your monthly student loan payments almost in half. When you consolidate your college loans, you may be able to extend the repayment term on your parent or student loans by up to 20 years. With that longer repayment term, since you have more time to repay, the amount you have to pay each month will typically go down. By consolidating your college loans, your monthly payments could go down by up to 40%!

Apply in Minutes to Consolidate Your Student Loans

You can apply for your student loan consolidation in minutes, either online or with a quick phone call to NextStudent. It’s fast, easy, and free to apply, and there are NO fees, NO credit checks, and NO co-signers required.

There are also no prepayment penalties on your Federal Consolidation Loan. When you consolidate your student loans with NextStudent, you’ll never be charged extra for paying more than the minimum each month or for paying off your student loan consolidation early.

Who’s Eligible for Student Loan Consolidation?

To be eligible to consolidate your own federal student loans, you can’t currently be enrolled in school more than half time. The student loans you’re looking to consolidate must be in repayment, in a grace period, or in an authorized deferment or forbearance period.

Your parents can consolidate the PLUS loans they took out to help you pay for school as soon as those student loans have been fully disbursed and have entered repayment, even if you’re still in school full time. Although your parents can consolidate their PLUS loans, you won’t be able to consolidate your own college loans with your parents’ loans.

Student Loan Consolidation for Private Student Loans

If you have private student loans in addition to (or instead of) your federal student loans, you won’t be able to consolidate your private student loans under the federal student loan consolidation program. But you may be eligible to consolidate your private student loans separately with a Private Consolidation Loan, which offers the same convenience of a single consolidated loan for your private student loans.

NextStudent believes that getting an education is the best investment you can make, and we’re dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation at NextStudent.com.



By: Jeff Mictabor

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