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.
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What is a good company to consolidate private student loans with?I would like to consolidate my private student loans but don't want to be subject to the pitfalls of those attractive offers like "Consolidate now and get a check fo $1000.00." I read the fine print of all the mail offers I receive but I don't trust any of them enough to persue them. I have about 40k to consolidate and will be returning to school in January to add a few more thousand. Has anyone already consolidated and had a good experience? I would be moving from Sallie Mae as my servicer. Please note, these are for private loans, not federal. Thanks in advance!
I would prefer not to consolidate with Sallie Mae. I had a rather awful experience with them recently and partly look to reconsolidate so that they are no longer my loan servicer .
You have not been paying attention to the financial news. It is because of the "credit crunch". The implosion of the credit market that caused the prices of houses to start falling. Because cheap funding is no longer available, such loans are no longer profitable for lenders.
I'm not sure you can consolidate your loans if you are still in school. Are these government loans or private loans? If government, are any of them subsidized loans? If they are, this means they are interest free until you graduate and consolidating might affect that.
Consolidation is a way of locking in a lower interest rate for the life of the loan, and many companies offer bonuses like cash back for 1.25% of the loan after 24-months of payments. Interest rates on loans vary as the economy varies. By consolidating, you lock in the current rate forever. With current rates being close to 8%, I would not recommend consolidating at this time. When rates FINALLY go back down to 6 or 7%, you will be stuck at 8%. Unless you hear that rates are suddenly jumping to 12% in 3-months, hold off.
You'll be consolidating at the end of your education, if you struggle to pay different bills.
But do not consolidate with a private company before the end of your scholarship, because you start paying interests from the day you consolidate.
Good luck !
How about if you don’t have 7or 9G to settle directly with the CC comp.? I think you are better of with a non profit settlement company. I did it now I pay 335 a month to them and that includes their fee of 50 a month even a non profit charges you something. But atleast am not pay theCC 640 a month no calls and hassle of worrying if my interest is going up. And stay the FUCK away from the CC voltures!
You be better off filling for bankruptcy. They might settle with all your debts but your credit card companies dont have obligation to talk to these people. Also if they will settle your account.. IRS will charge you with those accounts they settled as your INCOME..When you enrolled to this.. it will destroy your credit also because you are not making payments. Lastly, bankruptcy will only cost you at least $2,000 dollars for lawyers fee this program.. they will charge you.. at least 5g
this lady doesnt have a clue, shes probably screwed up more peoples lives from this video than helped.
It’s so good to be aware…. Thank you!
Herc,
The problem with consolidation loans boils down to one thing: it changes the type of your loan from an UNSECURED loan to a SECURED loan. What does this mean? This means that if you ever miss payment or run into a rough patch down the road, the creditor is legally in the clear to take away your personal property in return for the loan.
That's the reason many people who have done large consolidation loans regret it to this day.
One option that many people don't really know they have is to get their loan balances reduced by negotiations with the creditor. Of course, you need an expert to do this on your behalf just as you'd have an expert change the transmission on your car. But the savings here could be potentially huge.
If you check out http://www.ZeroBill.com there's a case study on there of someone with about $30K of debt similar to yours where they ended up owing only $17K when all was done. I'd highly recommend this option before considering consolidating loans.
@brianedwards35 That make sense.
Thx for serving our country (soon to be). Honestly I would never consolidate with anyone other then the FED. Consider this, if you want to go back to school they will defer your repayment, a bank won't. With the FED you don't need a cosigner. If anything were to happen to you your co-signer would be responsible for your debt, but with a federal loan it would be zeroed out. If you have automatic withdrawls the fed will deduct I think .25 or.50% off your interest and plus they will take a few k $$$$ off your loans for making payments on time for 4yrs or something. The fed also has a repayment plan that goes off your income, odds are 1/2 that it will work for you. They have good programs, check into them. And w/ a federal loan you also get a 6 month grace period before you have to start repayment.
If your going into the Navy and you have a degree I would hope your going to be an officer, they should be paying off your loans for you anyway. Those sneaky lil bastards, you can tell your recruiter you will go to the Air Force if they don't pay off your loans. I do not know your situation, but if your degree will be used in military service to fulfill your duties, they better pay that off for you!!
Hope this helps and GL.
I would talk to your current lender about what is offered. Some lenders have better deals if you do not consolidate. But if you do the most hassle free way is usually through your current lender. When you go through a third party it usually takes much longer to complete as the paperwork has to be sent back and forth between your current lender and your consolidating lender. Some of the more common benefits are a .25% rate reduction for setting up automatic withdrawal and a 1% interest rate reduction for making 36 (sometimes more, sometimes less) on time payments. A few will offer better than that, but not most. I would steer clear of the offers for a cash rebate after you make your first payment. If they offer this in conjunction with the other benefits than it may be worth it. But if that is all then it will save you more in the long run to go with the interest rate reduction. A lot of people will choose that because it seems like such a good deal, who wouldn't want cash up front?
But anyways, with 3rd party lenders I have seen some of them just now being finished when the person filled out the consolidation application in June of 2006. It doesn't always take that long, but it definitely can. Good luck!
why worry about the stupid Fico score. is it really worth it to live beyond ones means? best remedy of all is to work harder and pay the debt off and never take on more than you can chew.
A few points, feel free to challenge:
1. If a person is unable to make even minimum payments, how will they be able to settle with the CC companies? Are the CC companies really going to accept lower payment terms without any guarantee of paying? That would be like extending even more credit to a person who who has already shown that they are completely incapable of paying.
First of all: You CANNOT settle on a debt and ask your creditor to report it as PAID IN FULL! It will never happen!! I guarantee it! That is essentially lying!!!!! They will NOT DO IT! It will always be reported as settled for less than the full balance. But its ok!! Its better than a charged off account!!! 2nd: Make sure you seek out a non profit debt management agency through CCCS. They do exist! Do your research!!!!
right now you should be able to get a consolidation loan with a rate of 10.5%!!!
First of all: You CANNOT settle on a debt and ask your creditor to report it as PAID IN FULL! It will never happen!! I guarantee it! That is essentially lying!!!!! They will NOT DO IT! It will always be reported as settled for less than the full balance. But its ok!! Its better than a charged off account!!! 2nd: Make sure you seek out a non profit debt management agency through CCCS. They do exist! Do your research!!!!
The best time to consolidate is when interests are starting to get charged to you. (different according to the type of loan you get).
There's no catch, but you need to understand that you'll pay 2 times the loan if you consolidate over a long-time.
Find a relative to help. Student Loan companies are regularly dealing with students who default. Even if you don't, they have to make up the difference for the money they are loosing from all the bad loans. And if you default, they want someone else attached to go after. The only thing you might consider is a credit card with a 0% balance transfer rate (6mos. is typical). You can transfer to the card and pay off whatever you can, then transfer to a new card six months later, aka. credit rolling. This takes a lot of discipline but is the easiest way to avoid all interest charges. Most cards have limits on balance transfer amounts so you may need two or three. If you close the accounts after you open new cards, it will improve your FICO too. Also, you don't need cosigners for cards. Like I said, risky and takes discipline, but it works.