How Can Consolidate Private Student Loan Help You?
It is wise to consolidate all of your student loan into one that you can able to manage. Instead of trying to juggle several private student loans, it is best to lump them together so it is easy to manage. An idea is to consolidate private student loan. When you do this, you are replacing all of the private loans that you acquire into one. This may sound a lot of work but that is what you think. It is quite easy and there are benefits that you can enjoy. The main benefit that you would probably get when you do this is lowering down monthly payments. Instead of making several payments on different loan, you would just need to make one monthly payment. This would save you from confusion. There are even times that you tend to forget about all the payments that need to be done. When you undergo consolidate private student loan program, the monthly payment is less than the amount of loans combined.
With the extra money, you can do a lot of things with it like paying for rent, buying furniture and more. By combining everything into one, the repayment scheme is much more convenient. You are only dealing with one lender. It minimizes the risk of missing payments. There is less paperwork to worry about. No need to juggle on several due dates.
With consolidate private student loan this can be an opportunity to acquire a much lower interest rate. In the long run, you can save a lot of money. The interest charges are much lower. You can offset the cost of lowering down monthly payments. The point is to lower down monthly payment without really extending the loan further. Another benefit of consolidate private student loan is to improve the credit score that you have. When you apply for this type of loan, the money is being used to pay every loan that is consolidated. With this you have paid multiple loans on time. This can very well improve the credit score.
You may wonder how it would benefit you. If you want to buy your dream car or house, then you would need to apply for mortgage or car loan. If you have a good credit score then you have to pay less interest. This would save you a lot of money. In mortgage, you can able to save thousands of dollars. Make your life easier by dealing only with one loan.
By: Christoffer X Altesino
Financing College Expenses With Student Loans or With Credit Cards?
Students always need finance to cover the expenses of daily life. Buying books, paying for rent, groceries, services, etc. can add up to considerable amounts that must be paid somehow. The easiest way is to use a credit card; credit cards are always in hand and are a very comfortable payment method.
But what happens when you will not have enough money by the next month to pay the whole balance? Or, in other words, what if you need finance to make ends meet? Is a credit card the best source of finance or are there other options that you can turn to if you need funds to cover your expenses?
All these questions will be answered in the following paragraphs. What we want to make students understand is that finance is a serious issue that should be well thought. Rushing in and choosing the easiest path can lead to unfortunate consequences that can easily be avoided by doing a bit of research and making conscious decisions.
Other Finance Sources
The truth is that when it comes to students, lenders are more flexible and a student will be able to get finance at low interest rates without too much hassle as long as he is willing to go through the process of applying for a loan.
Many people feel that using a credit card and getting finance through it is not borrowing money, but it is. There is no difference between that and applying for a loan. So, given that either way you will owe someone money, you might as well borrow money with a lower interest rate.
Federal Loans carry the lowest interest rates when it comes to student loans. The interest rate charged for a federal loan is usually below 6%. Another benefit that comes with this kind of loans is that the repayment is deferred till graduation. Moreover, you can sometimes agree a deferment of up to a year after graduation.
Regular loans on the other hand carry somewhat higher interest rates but nevertheless lower than other unsecured personal loans. Repayment can also be deferred and payment schedules can last longer than federal loans. Also, private loans provide higher loan amounts than federal loans.
Credit Cards
If you choose to finance yourself with credit cards, you must understand that costs will be a lot higher. Unless you always pay your balance in full (in which case you would not be financing) the interest rate you will be charged for credit will be as high as 20%, let alone other charges and fees like insurance, issuing costs, etc.
Not only is the interest rate a lot higher, but it is also not fixed. So variations in market conditions may increase the interest rate charged and you will end up paying a lot more than you expected. Besides you cannot defer payment, you will have to begin to pay for your purchases the following month. And if you choose to pay the minimum you will end up accumulating debt which is a dangerous thing to do as the minimum will increase every month and you will end up being unable to pay your credit card balance.
By: Devora Witts
Student Loans: Cut Monthly Payments on your Student Loans by Up to 42%
If you’re a graduate or college parent with any outstanding federal student loans, you may be able to lower your monthly student loan payments by up to 42% just by consolidating your parent or student loans. 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.
NextStudent, a leading Phoenix-based education funding company, offers a student loan consolidation program with no application fees, no processing fees, and no credit checks. By consolidating your parent or student loans, your monthly payments could go down by up to 42%.
Here’s an example: Estimated monthly payments on a $75,000 NextStudent Federal Consolidation Loan fixed at 7.25% and repaid over an extended term of 30 years are $512, versus estimated monthly payments of $879 on a $75,000 Federal Stafford Loan issued at 7.22% and repaid over 10 years — a 41.8% reduction in monthly payment amount. (Your actual payment reduction may vary and will depend on the terms of the student loans you’re consolidating.)
Replace Your Variable-Rate Student Loans With One Fixed-Rate Student Loan Consolidation
If you took out your 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. So when interest rates rise, your monthly student loan payments may also go up. Student loan consolidation puts an end to rate increases and rising payments.
NextStudent’s student loan consolidation program gives you the security of a fixed interest rate. By consolidating your federal college loans with NextStudent, you’ll replace your variable-rate college loans with a fixed-rate student loan consolidation loan and lock in your new monthly payments, so you’ll never have to worry about interest rates rising and leaving you guessing about your monthly payment amount.
Make Repaying Your Student Loans Convenient and Hassle-Free with Student Loan Consolidation
If you have multiple college loans in repayment and you’re dealing with the hassle of 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, one lender, and one monthly payment that’s fixed for the life of your student loan consolidation.
Apply in Minutes to Consolidate Your Student Loans
Typically, you can apply for a student loan consolidation in minutes. Just visit an online student loan consolidation lender or make a quick phone call to the lender of your choice. 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. When you consolidate your federal parent or 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.
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 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