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Friday, May 29, 2009

How Do I Know If I am Eligible For Student Loan Debt Consolidation?


If you are a parent sending your child off to college or if you are a student going to college for the first time, you are probably cringe whenever you receive a tuition bill in the mail--or when you thinking about buying $1000 worth of textbooks for next semester.

As the price of getting a college education rises in the United States, so does the demand for student loans and student debt consolidation services. Whether it be for graduate school or to study abroad, students are accruing massive debts beyond what was reasonable in the past.

These loans already have low interest rates and flexible pay-back terms because they are specifically targeted to members of society who are not in the work force; however, even with these rates, you may find it troublesome to pay them back on schedule.

Consolidations programs are tailor-made to help students manage their debt and avoid debt default. There are two ways in which these programs will deal with the problem: they will either reduce the principal or they will eliminate it altogether.

This is actually permissible for all loans where they allow pay-back in terms of specific services or higher education; whether or not this applies to you depends on the type of student loan scheme for which you opted.

If this does not work for you, you always have another option: you can seek the help of a consolidation agency. There are special consolidation agencies that deal with student debt problems.

Basic Types

There are generally two types of student loans: federal and private. If you have taken both, you should never consider consolidating them into a single package. Only federal loans have government backing; and hence, can be refinanced at low rates. It is always advisable to take
all federal loans together, solve them; and then head for the private ones. Private student loans are generally unsecured and charge higher interest rates than their federal counterparts.

Conditions of Consolidation

There are certain norms that have to be in effect if you want to consolidate your student loan. To begin with, you have to be out of school or college and must be in the "grace period" of the loan; or must already be making repayments to avail the facility of a consolidation help service.

If you fit into the criteria, then you should move ahead to the next step, which is talking to the
consolidation company and asking them to contact your creditors to reduce your monthly payments and interest rates. Just as with any other loan, student loan repayment affects your future prospects of loan-taking.

If student loan debt goes beyond eighty-five percent of your total income, it is seen as a negative score in your future credit assessment. This shows that even student loans have an influence on your future decisions as a borrower.

There are some consolidation companies who may qualify you for additional reduction programs, which not only reduce the interest rates, but also include grace period savings, on-time payments, and automated direct-debit payments.

Beware

Not all consolidation companies on the block are genuine, so make sure the one you apply for is a reputed one with sufficient evidence to support its creditability. Otherwise it will lead to doubling your problems, as fake companies will only add to your already high debts.
If you are a parent sending your child off to college or if you are a student going to college for the first time, you are probably cringe whenever you receive a tuition bill in the mail--or when you thinking about buying $1000 worth of textbooks for next semester.

As the price of getting a college education rises in the United States, so does the demand for student loans and student debt consolidation services. Whether it be for graduate school or to study abroad, students are accruing massive debts beyond what was reasonable in the past.

These loans already have low interest rates and flexible pay-back terms because they are specifically targeted to members of society who are not in the work force; however, even with these rates, you may find it troublesome to pay them back on schedule.

Consolidations programs are tailor-made to help students manage their debt and avoid debt default. There are two ways in which these programs will deal with the problem: they will either reduce the principal or they will eliminate it altogether.

This is actually permissible for all loans where they allow pay-back in terms of specific services or higher education; whether or not this applies to you depends on the type of student loan scheme for which you opted.

If this does not work for you, you always have another option: you can seek the help of a consolidation agency. There are special consolidation agencies that deal with student debt problems.

Basic Types

There are generally two types of student loans: federal and private. If you have taken both, you should never consider consolidating them into a single package. Only federal loans have government backing; and hence, can be refinanced at low rates. It is always advisable to take
all federal loans together, solve them; and then head for the private ones. Private student loans are generally unsecured and charge higher interest rates than their federal counterparts.

Conditions of Consolidation

There are certain norms that have to be in effect if you want to consolidate your student loan. To begin with, you have to be out of school or college and must be in the "grace period" of the loan; or must already be making repayments to avail the facility of a consolidation help service.

If you fit into the criteria, then you should move ahead to the next step, which is talking to the
consolidation company and asking them to contact your creditors to reduce your monthly payments and interest rates. Just as with any other loan, student loan repayment affects your future prospects of loan-taking.

If student loan debt goes beyond eighty-five percent of your total income, it is seen as a negative score in your future credit assessment. This shows that even student loans have an influence on your future decisions as a borrower.

There are some consolidation companies who may qualify you for additional reduction programs, which not only reduce the interest rates, but also include grace period savings, on-time payments, and automated direct-debit payments.

Beware

Not all consolidation companies on the block are genuine, so make sure the one you apply for is a reputed one with sufficient evidence to support its creditability. Otherwise it will lead to doubling your problems, as fake companies will only add to your already high debts.

4 comments:

Anonymous said...

Very useful and informative article specially for the students needing higher education. Enjoying reading the same. Congrats and best wishes for your success.

Cayla Smith on April 10, 2017 at 2:34 AM said...

Thanks, this post teach me how to fix my debt consolidation bad credit

Unknown on August 29, 2018 at 1:42 AM said...

Do you seek funds to pay off credits and debts? Do you find yourself in a bit of trouble with unpaid bills and don’t know which way to go or where to turn? What about finding a reputable Debt Consolidation firm that can assist you in reducing monthly installment so that you will have affordable repayment options as well as room to breathe when it comes to the end of the month and bills need to get paid? Wesley Loan Company is the answer. Email (wesleyloancompany@yahoo.com)
We offer the following types of loans
*Debt Consolidation Loans
*Business Loans
*Personal Loans
*Home Loans
*Car Finance
*Commercial Loans
*Investments Loans
*E.T.C
Note: We give you loan with a low interest rate of 2% and loan duration of 1 to 20 years to pay back the loan (secure and insecure). Do not keep your financial problems to yourself in order for you not to be debt master or financial stress up, which is why you must contact us quickly for a solution to your financial problems. It will be a great joy to us when you are financially stable. Email {wesleyloancompany@yahoo.com}

Unknown on August 30, 2018 at 5:08 AM said...

Do you seek funds to pay off credits and debts? Do you find yourself in a bit of trouble with unpaid bills and don’t know which way to go or where to turn? What about finding a reputable Debt Consolidation firm that can assist you in reducing monthly installment so that you will have affordable repayment options as well as room to breathe when it comes to the end of the month and bills need to get paid? Wesley Loan Company is the answer. Email (wesleyloancompany@yahoo.com)
We offer the following types of loans
*Debt Consolidation Loans
*Business Loans
*Personal Loans
*Home Loans
*Car Finance
*Commercial Loans
*Investments Loans
*E.T.C
Note: We give you loan with a low interest rate of 2% and loan duration of 1 to 20 years to pay back the loan (secure and insecure). Do not keep your financial problems to yourself in order for you not to be debt master or financial stress up, which is why you must contact us quickly for a solution to your financial problems. It will be a great joy to us when you are financially stable. Email {wesleyloancompany@yahoo.com}

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