Private loan » Student Loan Debt

Student Loan Repayment Using OPM (Other People’s Money)

admin — Thu, 24 Jun 2010 00:06:07 +0000

This article is an overview of ways to have other people make student loan repayments for you, or at least of portion of them. These programs aren’t for everyone, but the shoe probably fits quite a few people.

Join The Military
The SLRP (Student Loan Repayment Program) is used by the military as a recruiting incentive. The Army and Navy can repay up to $65,000 of student debt, and the Air Force will pay up to $10,000. 15% of the loan balance or $500 is paid each year, whichever is greater. Reservists can also take advantage of this program, but in lesser amounts (up to $20,000). There are also a number of loan deferments possible for people in the military. So if you are thinking about joining the military make sure you ask about the SLRP and make sure this benefit is specified in your enlistment agreement. Only federal student loans can be repaid in these programs.

Teachers
There are several programs available for teachers to get help paying off their federal (not private) student debt. The Stafford Loan Forgiveness Program gives eligible teachers grants to repay student loan debt of up to $5,000 after they have taught for 5 consecutive years in a low income school. Teachers can also qualify for the Public Service Loan Forgiveness Program. After 10 years in public service a person’s student loan balance can be forgiven. A teacher can enroll in an IBR (Income Based Repayment) Plan during those 10 years, and this will provide the lowest monthly payments possible until the loan is forgiven after 10 years. There are also some state programs available to help teachers pay off their student loan debt. Check the state government web site or call the education department of your state government to inquire if any programs are available that might help you.

Health Care Workers
There are a number of federal programs for student loan repayment that apply to health care workers. Under the Higher Education Opportunity Act of 2008, “full-time professionals engaged in health care practitioner occupations and health care support occupations” and “medical specialists” can qualify for up to $10,000 in student loan repayments over a period of five years. Also, Nursing Education Loan Repayment Programs (NELRP) will pay up to 60% of student debt for nurses who work in a critical shortage facility. There are also student loan repayment programs with the National Health Service Corps (NHSC) and the National Institute of Health.

Federal Government Workers
If you are employed by the federal government it is possible to obtain loan relief from the Federal Student Loan Repayment Program. This program is designed to retain or attract talent, and the borrower must agree to stay with the agency making the debt payments for 3 years. $10,000 of debt relief can be paid each year up to a total of $60,000.

Legal Workers
In order to attract attorneys to become public defenders, the government has instituted the Loan Repayment for Civil Legal Assistance Attorneys Program. There is a minimum service period of 3 years and up to $6,000 of student debt can be paid off each year with a maximum of $40,000 of debt relief.

Other Options
Of course friends and family can be asked at graduation time to make a financial contribution that will go toward paying off student debt. A couple of interesting web sites exist as well which give credit for many common purchases, and payments are made against student loans to help offset outstanding balances. Among these are upfriends.com. Small amounts can build up over the 10 years or longer life of the loan and make a real impact. Every little bit counts and helps.

By: Walt Ballenberger

Am I Eligible For Student Loan Debt Consolidation?

admin — Sat, 19 Jun 2010 18:48:24 +0000

As a student who has taken admission in college for the first time or as parents who are planning to send their child to college, you can’t help but cringe, when you have to purchase textbooks worth thousand dollars or when you receive a bill for tuition fees. The rise in expenses associated with college education in United States has led to increase in demand for student loans. This has, in turn, increased the requirement for student loan consolidation services. Students, whether pursuing their studies in a graduate school or studying abroad have accrued huge debts, much beyond, what was considered reasonable, a few years back. Student loans have lower than normal interest rates and very flexible payment terms. This is because these loans are specifically meant for the people who are not employed.

But even with such low interest rates and convenient pay-back terms, many students may find it difficult to pay these loans as per the payment schedule. Student Debt Consolidation programs are customized to assist the students in managing their loans and thereby helping them to avoid defaulting on their debts.

There are debt consolidation agencies which are specially meant to manage debt problems of the students.

Basic Types of Loans

Student loans can be classified into federal and private. If you are one of those students who have taken both types of loans it is strongly recommended that you do not consolidate these two loans into one. Out of these two loans, only loans classified as federal can be refinanced as they are backed by the government. You should package all the federal loans into one and solve them before heading for the private loans. Private loans are mostly unsecured in nature therefore they charge interest rate which is higher than federal loans.

Criteria for Consolidation

If you would like to go for consolidation of your student loan, you will need to meet certain criteria. Firstly, it is required that either you should be out of the school or college and be in what is defined as the “grace period” of your loan or you must have already started repaying the loan in order to take advantage of student debt consolidation service. When you get in touch with a consolidation agency providing service to students, you must begin by asking them to get in touch with your creditors.

The agency will negotiate with these creditors and convince them to reduce rate of interest as well as your monthly payment. The repayment of your student loan has a direct impact on your prospects of taking loans in future, as is the case in any other type of loan. In case your student loan becomes more than 85% of total monthly income earned by you, it will be assessed as a negative score for any future loans. This emphasizes the importance of timely repayment of your student loan and its effect on your future decisions of borrowing money. Based on their evaluation of your financial position and repayment schedules, some debt consolidation agencies can qualify you for further debt reduction programs. These addition reduction programs assist you in many ways, most important of which is reduction in your interest rates. They also include savings made during grace period, automated direct debit payment and on time payments.

Beware

It is very important to state here that not all consolidation companies are genuine in nature. Therefore, you must apply to the consolidation company which is a famous company with credentials to support. Ignoring this advice may lead to substantial increase in your problems as such illegal companies will lead to higher debts.

By: John J. Baker

Avoid Submerging In Student Loan Debt

admin — Mon, 07 Jun 2010 04:30:48 +0000

Student loan debt is increasing every year with the increase in the college tuition fee and related college expenditure.

A study conducted by the National Center for Education Statistics indicate that as many as 50% of graduates have taken worth as much as an average of US $10,000.

In the recent years, the interest rates have been fluctuating between 2% to 4%. The loans are taken not only by student fresh out of college, but also by those who are over 20 years or as much as 40 years.

If the repayment history is good, the consolidation interest rates can be as low as 2%. Statistics indicate those who have debt of more than 8% of their income usually and face problems to generate future loans.

There are various ways to reduce debts:

Reduction of principal balance reducing monthly installments help in getting better credit evaluation. there are other options available for different types of financial assistance like grants, scholarships, federal and private loans Government of United States of American is offering various opportunities to decide on the best financial assistance like Student Aid Wizard from the US Federal Government Department of Education. after graduation, they need to start paying their debt. Choosing the right kind of student loan

Reasons to consolidate debt are:
More the reduction in interest rates, less the monthly installments as well as overall debt As interest rates is the lowest as compared to recent years, getting better rates than during the start Reduction in the number of creditors to ensure better handling.

Student loans financed by federal government have much lesser interest rates as compared to private. But consolidation of federal as well as private may lead to higher interest rates, therefore it is advisable to keep the both separate. It is also advisable for students to clear their loans regularly rather than having defaulted, affecting the credit in future.

Consolidation of Student Loan Debt

With the increase in education costs students are getting over-involved by student loan debts as higher education costs are ever increasing as well as students going out of station to pursue higher education needs to spend substantial amount of money in other amenities. This affects their education. Consolidation can help clear debts and revive financial status.

Students are able to regularize their other debts such as accommodation rentals, food, credit card debts and education debts together into a singular consolidate debt.

By: Adia O'Hara

Astrive Student Loans- Useful Info

admin — Sat, 10 Apr 2010 00:19:10 +0000

As you search for Astrive Student Loans related information or other information about Direct Education Government Loan, Government Stafford Loan or Government Graduate Loans, take your time to view the below article. After going through it you will also be better informed about information in some way related to Astrive Student Loans, such as Should I Consolidate My Loans?, Direct Loans Deferment, College Loan Scandal, Private Student Loan Options or even Government Guaranteed Loan.

Pick up the phone and call any student loan consolidation experts and let them explain just how it works. What happens is that this company pays the balance you currently owe on the student loan. This means all those nasty bills you receive, can be tossed in the garbage. Now instead of 8 bills each month, you have one affordable payment each month. In general, student loan consolidation experts, willingly assist you reduce the stress and pay back your loans.

Students have an option between federal student loan and a private student loan where it is easier to opt for student loan debt consolidation than through the federal student loan.

What are your living expenses? This question involves making a budget that includes all the expenses you incur on a monthly basis. Included in this should be rent, utilities, car payments, insurance, gas, food, child care if needed, other loan payments and any expense that you think you might need on a monthly basis. You’ll then need to multiple your monthly budget by the number of months in the school year, usually nine, and then add in the costs of tuition and other colleges related fees. This will give you a good idea of the total financing you’ll need for the year.

For instance, in the URL, you should see HTTPS: if the website is secure you will see the “s”, if not, you will not see it. Another way to determine if it is indeed secure, is to look at the bottom of the web page, if you see a golden lock on it, the website is secure. Beware of scams and make sure you investigate the business with the BBB (Better Business Bureau) or scam watch sites, to keep your information safe.

With an unsubsidized loan, the loan will be charged interest during the entire course of your school career. If the interest is left unpaid, it is then added to the principle amount of the loan. This tends to increase the amount you need to pay, as well as the time it will take you to pay off the loan.

If as related to Astrive Student Loans as this article is, and it still doesn’t answer all your needs, then don’t forget that you can conduct more search on any of the major search engines like Google.com to get more helpful Astrive Student Loans information.

And when you are interested to consolidate student loans, you should know that even of your student loans are already in repayment, to consolidate student loans is still allowed and beneficial. It is for the reason that when you consolidate student loans at this time, you already fix the interest rate on your government student loans while the rates are still originally low.

We discovered that many people who were also searching for information related to Astrive Student Loan also searched online for related information such as ECSI Student Loans, Sallie Mae Loan, and even Michigan Alternative Loan.

By: Deepak Kulkarni

Consolidate Student Loan Debt: A Student Loan Debtor’s Perfect Solution

admin — Tue, 30 Mar 2010 15:58:58 +0000

Anyone who has been in a situation of trying to get from under debt probably knows there is no “perfect” solution to that dilemma any more than there is a perfect solution to a student loan debtor’s dilemma. The best that can be hoped for is to find a consolidation loan that will allow the former student to enjoy a standard of life based on his or her degree and still be able to repay the numerous student loans that were required to finance that education.

That being said, you need to understand the term “student loan consolidation,” which, like any other consolidation, means you take your debt and combine it into one, lower, easy monthly payment. The difference is that only student loans are qualified for a student loan consolidation; that means you can’t pay off your credit cards, car, or furniture with a student loan consolidation.

Several different programs exist that allow students to consolidate student loans, but the best seems to be the Federal Student Loan Consolidation program. First, it has the lowest interest, varying from 1.5% to approximately 4.5% with payment terms of ten to twenty years. Depending on the amount of loans you have outstanding, taking a Federal Student Loan Consolidation can reduce your payments as much as 50% a month. Additionally, these loans do not require income verification or credit reports, so those who have just begun a new job or will soon and have bad or no-credit still qualify to consolidate their student loans.

Of course, there are other student loan consolidation programs available including the Direct Student Loan Consolidation, which requires a borrower to have at least one Direct Student Loan, a verifiable income, and no adverse credit to qualify. Another type is the Private Student Loan Consolidation, which, though not as attractive as the Federal Student Loan Consolidation, is feasible for the former student who is set in a job and has a means of support. These loans run for up to twenty, sometimes thirty years, depending on the lender. Though a somewhat higher interest rate averaging from 6-10%, they are still more attractive than the average consumer loan and allow the borrower to get from under his or her student loans and begin life as a tax-paying citizen.

A student just graduating from college feels overwhelmed, wondering how he is ever going to have any kind of a life with the payments on those student loans hanging over his head. Student Loan Consolidation Loans help ease the stress and worry over those loans and gives the student a chance to begin his new life within the scope of his chosen field. It means he or she can buy a car, rent an apartment or buy a house, and obtain financing for furniture and still be able to afford to make payments on all of those student loans. It may be a little difficult at first until the expected income starts coming in, but at least there is a future that will allow much of the stress to be lifted.

By: Darnell Scott

Student Loan Debt Consolidation – An Overview

admin — Mon, 29 Mar 2010 03:54:47 +0000

There are a number of student loans and can be categorized into two main types: Federal Student Loans and Private Student Loans. The Federal student loans are disbursed through the US Department of Education’s Federal Student Aid programs, and are the easiest to obtain. The private student loans are obtained from standard lending institutions and banks, among others. You can use both types of loans to fund your education, but when it comes to your Student Loan Debt Consolidation, never mix up the two together.

Start by consolidating your Federal student loans first. The benefits of student loan debt consolidation of your Federal loans is that:

• The rate of interest is lower

• It reduces your monthly payments as the term of loan repayment is increased to 30 years, depending on the loan balance

• The repayment is consolidated to a single check payment each month.

You are eligible to go for your student loan debt consolidation of your Federal loans when you are not enrolled in school any longer; you are actively repaying your loan or are in your six-month post-graduate grace period; you have a minimum loan amount of $10,000.

The reason why you should never mix up the Federal and private loans during student loan debt consolidation is that the interest on Federal loans is tax deductible; you can defer payments when you go back to school; and the loan is forgiven for certain types of service. Private students loans do not have these advantages as they are treated just as normal loans. Mixing up the Federal and private loans during student loan debt consolidation makes you lose all the benefits of the Federal loans consolidation.

Go for student loan debt consolidation to lower your debt burden, as once you have graduated you have to start paying back your loans.

By: Gibran Selman

Paying Off Student Loans

admin — Sun, 28 Feb 2010 02:53:39 +0000

Many student lenders and financial aid institutions can now tell you that as a borrower you now more often than not have a number of options that can help you pay off your student loan easily enough. In fact a student loan debt is in general far more flexible than all the other types of debt. Most Federal student loan programs usually offer extended repayment periods. This can lower your monthly costs. However, it must be known that the longer that your loan term is, the higher your overall cost of loan will be. Federal student loans also give you the ability to postpone your payments or even pay less than the entire amount that you owe. This is to protect the borrower in the event of his becoming unemployed or suffering any unforeseen financial hardship.

Today student loans have a large variety of repayment options. These options even include some payments that rely on salary, also called income sensitive payments. These can be graduated payments that will start small and then slowly rise over time. This gives you as a student borrower enough space to breathe. There is now also a provision for a possible rehabilitation of a loan that is defaulted. This will see that some or all the negative information about your loan is removed from your credit report.

However this is only done after twelve consecutive monthly payments have been successfully made.

Private student loans make up approximately twenty percent of new loans that are disbursed to students. Now even these loans permit consolidation, deferment and forbearance that in turn help by lowering the monthly costs borne by the student borrower. So it can be well concluded that student loan debts are not difficult to pay off considering the various consumer friendly options that they come with.

By: Max Bellamy

Converting Loans Into Fixed Rate Student Loans

admin — Thu, 28 Jan 2010 02:51:15 +0000

The only fixed rate student loans available are federal loans, and even those can change based on federal law. However, if you want to lock in your interest rate, you can do so after you finish school.

Federal student loans offer a more stable rate; even though changing laws can change the interest rate on these loans, it is not going to happen from one day to the next, which is a possibility with private loans. Private loans should only be considered when federal loans and financial aid do not cover the costs of your education.

Education costs are rising faster than federal student loan amounts, so many students are finding themselves in a situation where they need extra funding. Lenders take advantage of this situation and stepping in to fill the gap.

If you have excellent credit, you are eligible for loans which offer Prime interest rates. Good credit takes time to build up, however, and if you’re a young student, if you don’t have bad credit, you probably have no credit or a very short credit history. This doesn’t make it impossible to get a loan, but you may need a cosigner or be charged higher fees and interest rates.

This puts you in an even more precarious situation than other sub-prime borrowers, because unless bankruptcy laws change, you will not be able to have your student loan debt excused by declaring bankruptcy unless you have extreme economic difficulties and, according to current precedence, absolutely no chance of future improvement.

You do have the option of consolidating student loan debts. This will give you the chance to freeze the interest rate for the life of the loan. The downside of this is that, while you will also pay less per month, you will be paying off your debt over a longer period of time and in the end, it will cost more. Having a fixed interest rate and lower payments now may be worth the future increase in total cost.

Consolidating student loan debts also allows you different payment options. You can pay interest-only for up to four years with some lenders, allowing you to get a head-start on a career, or you can take advantage of a graduated repayment plan to start paying off the debt now. You can switch payment options, so if you ever suffer financial difficulties, you can switch to an income-based plan. And you can always make early payments on the principle.

Students wishing to convert their private student loans into fixed rate student loans should consider consolidation. It offers a locked interest rate but allows borrowers the chance to use varying payment plans to make student loan payment easier.

By: Adam Hefner

Private Bad Credit Lenders – It’s All Good!

admin — Fri, 22 Jan 2010 00:47:58 +0000

If your credit is less than what the banks and standard lenders deem “acceptable,” turning to private bad credit lenders is not something to be ashamed of. These lenders are out there to help people who have black and red marks on their credit reports. In fact these private bad lenders might even be called “good private bad credit lenders.”

Now, at first these lenders may seem a God-sent to those of us unable to convince the banks that “we really will pay them back!”. However, not all private bad credit lenders are created equal.

Before dissecting private credit lenders we must understand why the standard bank will not loan to someone with “bad credit.” Traditionally, bad credit is acquired by not paying back loans on time or at all. But, low credit scores are also attributed to large student loan debt or other debt regardless of payment status.

This may seem unfair to consumers, but this is how the lending system works. Hence the introduction to the world of private bad credit lenders. Many of these lenders have systems in place to not only secure you a home, auto or personal loan, but to also make sure you pay them back!

Now, to the good stuff you’ve been waiting for; private bad lenders and their interest rates. Yes, the interest rates will be higher than if you had sparkling credit. But, that doesn’t give the the private lenders a right to jack your interest rate sky-high either! This is where consumer comparison shopping takes place.

A simple internet search will reveal many companies that cater to the “credit challenged.” But it is up to the consumer to understand the fine details before committing to the first private bad credit lender that will give you the loan you need.

As the consumer you must face your bad credit head-on. Accept that your credit is bad, needs improvement and that is all their is to it. No need to be ashamed or embarrassed. It is what it is. Take the time to research private bad credit lenders on many levels. The first being their interest rates, or course!

What Makes a Private Bad Credit Lender “Good”?

After confirming that their interest rate is a reasonable percentage above the standard there are other criteria to research as well.

Does the private lender have a selection of re-payment programs?
If an unexpected home or family situation occurs you will have peace of mind knowing that your lender is flexible and will not further drop your credit score.

By accepting a loan from a private credit lender, are you punished with a lower credit score?

Unknowingly to many a consumer, some of the these lenders have programs that actually hurt your credit score! Wow! Talk about a catch 22. These programs are not as prevalent as they once were and you are much more likely to not run into these programs as in years past.

All in all, private bad credit lenders have a lot of good about them. They offer higher interest rates, yes, but they also offer a loan. This is more than can be said about the bank around the corner. If you need a loan and are unable to secure one at a bank, do your research and apply with a private bad credit lender.

By: Ann Born

Boost Your College Financial Aid Package With Private Student Loans

admin — Thu, 24 Dec 2009 10:29:43 +0000

With tuition costs rising quickly and caps on federal financial aid rising slowly, an increasing number of college students are turning to private student loans from financial institutions such as banks and student loan companies after maxing out federal aid. Private student loans are different from both typical loans and federal student loans

What are Private Student Loans?

Private student loans are unsecured loans, which means the student does not put up property as collateral. Interest rates are influenced by credit history and can often be reduced by using a co-signer, but vary widely.

Private student loans are treated specially in the event of a personal bankruptcy, so students may not incur a total debt (including scholarships, fellowships, and federal loans) greater than the cost of attending school.

Private student loans offer a variety of repayment plans and deferral options, some similar to federal loans. Interest rates also vary widely from loan to loan.

Drawbacks to Private Student Loans

The interest rate is typically higher than interest rates on federal loans, and repayment plans may not be as advantageous for the student. Also, since most students who turn to private loans already have a considerable amount of student loan debt, the decision to take on more debt is a big one.

Alternatives to Private Student Loans

Alternatives to private student loans include transferring to a less expensive institution, finding a part- or full-time job, and applying for scholarships.

All of these alternatives have drawbacks. Transferring is difficult and may set students back as much as a semester. Working during school, particularly full-time, takes time and energy away from studies. And applying for scholarships doesn’t guarantee receipt. But none of these options require taking on more debt.

Before deciding which option is best for financing your education, carefully consider the pros and cons of all options. How close are you to graduation? What are your job prospects like? Have you successfully earned scholarships before?

Where to Get Private Student Loans

If you decide private student loans are the best choice for you, you have many options. Many lending institutions, especially the larger commercial banks, promote and offer private student loans, as do a number of companies that specialize in offering private loans to students, such as Sallie Mae. Not all are created equal. If you need help understanding the loan fine print, your school’s financial aid office can help you compare loans.

How to Get the Best Loan Deal

Your interest rate is largely dependent on your credit history. Since most students don’t have a long credit history, you may need a parent or other cosigner to get the best interest rates. Some loans have one interest rate while you are in school and another after you graduate.

The repayment plan is also another important aspect of the loan. Compare repayment plans carefully and calculate how much interest you will end up paying over the life of the loan.

Most lenders charge an origination fee for originating the loan, which is added to the loan principal. That means you will be charged interest on the origination fee as well as the original principal.

Finding the best deal on a private student loan requires attention to detail. You may want to seek advice on deciding between different loan options from a parent or financial aid advisor.

By: Christina Tangalakis