Direct Loan Consolidation, Instant Payday Loans
Once a grantee needs to start paying his student loans, it is advisable that he seek loan consolidation. Student loans usually have varying interest charges, but with consolidation, the grantee is commonly locked into a lower interest rate and installment amounts, and therefore a loan easier to pay.
The Process Of Consolidation
Loan consolidation is simply taking out the existing loans from lenders and pooling them into a single loan. Taking out means the consolidator pays each lender a balloon payment for the outstanding loan balance, thus assuming the loan risks. The consolidator then restructures the loan, resulting in lower repayment amounts, but usually a longer payment term. However, a consolidator may maintain or even lessen the rates, depending on the creditworthiness of the loan grantee. The terms vary on a case-to-case basis.
Types Of Government Student Consolidation Loans
Generally, two types of government student loan consolidation schemes. The first is direct consolidation loans. This is making payments directly to the US government Department of Education, bypassing any bank or secondary lending institution that may have lent you the monies firsthand.
The second scheme is the FFEL (Federal Family Education Loans) consolidation loan program. This government student loan consolidation scheme uses a new lender between the original lender and the federal government. Included in this scheme are standard student loans such as Stafford loans, PLUS loans and Perkins loans.
However, some states also offer government student loan consolidation programs funded from the state treasuries. They are also competitive programs in terms of repayment and interest, often tailor-fitting the plans to unique state or university requirements.
States without state-funded programs such as Alaska, Arizona, Hawaii, Indiana, Kansas, Maryland, Mississippi, Nevada and Wyoming use USA (United Student Aid) Funds as the national guarantor of their government student loan consolidation programs.
Benefits of Direct Consolidation Program
In this program, government-subsidized loan interests continue to be subsidized, and exhausted deferments might be renewed. These benefits are not readily available in any other private or government student loan consolidation programs. Private programs usually tack on additional interest charges for taking out loans for consolidation.
Benefits of State Student Loan Consolidation
Being more place-specific, state loan consolidation programs are generally more forgiving and flexible. Many states offer benefits for on-time or advanced payments, reduce interest rates on diminishing balances or direct withdrawal repayment methods, or include deferment options for qualified students in their menu.
In many instances, your state can offer the best government student loan consolidation options. Be sure not to skip exploring them.
In conclusion, whichever way one may look at it, availing of a government student loan consolidation program, whether state or direct, will benefit the loan grantee trying to pay off his student loans in many ways beyond simply reduced worries and hassle.
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Help answer the question about Loans Consolidation
Is there a consolidation loan to pay off payday loans?I made a huge mistake in using payday loans to help pay bills during a rough time. Now I can't get from under them and it's hard to pay on my regular bills. My credit is 495 therefore it has been hard to get a loan.
Is there help for me? Once i can get these loans paid I can make the monthly pay'ts.
About Author
John Mailer’s articles look at students financial problems and the best student loans consolidation ideas using private student loans. His other site is about the thrills of whitewater rafting
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Sounds too good to be true, the only thing a college grad needs to do is live in poverty and report their income until they are 55 or 70 years old.
This furthers the scam, allowing them to make MORE money by prolonging your payoff. My original debt
$30,000. Paid to date $14,000. How much do I owe?
$50,000! Good luck! Right now I’m paying $700.00
per month. Final cost of my loans at time of payoff $90,000. WELCOME TO THE DEBT TRAP!
Sallie Mae consolidates.
Redd:
If you'd asked this question two years ago, I could have given you a list of about 20-25 major lenders who offered student loan consolidation. Right now, you'd be lucky to find 5.
Four companies that I know are offering private loan consolidation products right now are:
Chase
Collegiate Risk Management
EduCare Financial
Student Loan Financial Group
I can warn you that all four of these lenders will subject your consolidation application to a rigorous and conservative analysis of your eventual ability to repay.
If your loans ARE federal loans, you should start with the government's own consolidation program – you can find that here: http://www.loanconsolidation.ed.gov/
Good luck.
Sallie Mae will not consolidate loans if they are federal (student) and private together. What will end up happening is they will do two consolidations. (one for private and one for federal stafford) Who better to answer that but Sallie Mae…have her contact them and they can tell her in a matter of minutes what they can or cannot do. 1-888-2SALLIE (888-272-5543)
As far as for the rest of the question…here goes.
First off, she needs to go to a website to access all of her federal loan information.
http://www.nslds.ed.gov
This website is the U.S. Department of Education's database of students federal student loans. When she logs in…she will be asked for a pin number. If she doesn't know it, go to the FAQ section and follow the instructions on how to obtain one. DO NOT GIVE IT OUT TO ANYONE!! NOT EVEN TO FINANCIAL AID!!
Secondly, if Sallie Mae is her lender and she wants to stay with themthrough consolidation…she needs to get the facts. 1-800-448-3533 / http://www.smartloan.com
This will give her the information she needs on consolidation. She needs to make sure that one of the questions she asks is:
I want to consolidate my loans so I only have to make one payment a month but I do not want to lose any of my grace period. When is the best time for me to start the process of consolidation?
If Sallie Mae says no to consolidating the other loans…ask them if they can "combine them." Unless she would rather make 3-4 payments a month depending on how much they consolidate.
Keep in mind also that if she has a bank account and has an automatic withdrawal…she may be able to reduce her interest rate. I would have her ask Sallie Mae for details.
Not yet Disbursed. You are correct, the monies have not been sent to the school on her behalf yet. She needs to contact the school to find out if it has now been done or if they do not need it. Sometimes, the data on the databases does not get updated right away. The best way to find out is to ask her financial aid office. There may even be a final balance that the school is awaiting the funds to cover it. This is called a late disbursement. Best person to answer that is financial aid.
Student loan consolidation does exactly what the word implies: it collects all your student loans into one "bucket" so you make a single loan payment.
What, exactly, happens to your interest rate depends on the terms and conditions of the individual loans. However if your loans can be consolidated, all of that will be clearly spelled out in the repayment information.
I very recently found myself in your same position. I was able to consolidate my defaulted student loans through Direct Loans. I believe they are one of the only companies willing to consolidate without first rehabbing the loan. Check them out. They were really easy to work with although the application process took a long time about 6 weeks from app to actual consolidation.
Yes, it is likely to affect your credit rating if you are to consolidate your loans. It sounds like this is unfortunate for you as you really want to do the correct thing. I would ensure first that a consolidation loan really is the way to go as student loans are generally cheaper.
Do yourself a favor and don't ask that question here, because all you're going to attract are the scam artists that frequent this topic area.
Let me offer a few bits of advice:
First of all, paying $100 as a fee to be granted a forbearance may seem practically criminal, but the costs of consolidating your loans will be far more expensive than $100.
A consolidation loan rips up all of your old loans and replaces them with a single new loan. Consolidation loans are sold with the promise that you'll lower your monthly payment – and that's almost always absolutely true.
HOWEVER, what they don't tell you – while they're pushing the idea of a lower payment – is how they manage to offer you a lower payment. Think about this – either they're going to lower your payment by significantly lowering your interest rate (nope), they're going to lower your payment by forgetting about some of the money you owe (never), or they're going to lower your payment by simply having you make a lot more smaller payments (bingo!)
Suppose you owed me $100, and we had agreed that you'd pay me $50 this week and $50 next week. You come back and explain that $50 is really more than you can afford right now – and you ask if there's anything we can do to lower your payment. I'd say "absolutely! – how about if you only pay me $10 a week, would that work for you?"
You'd think this was pretty nice of me – until I told you the other part of the deal. You'd pay me $10 a week, but you'd make 15 payments of $10. So what's happened? Now you're going to pay me $150, not $100. That's how a consolidation loan works.
The only difference is that we're not talking an extra $50. Depending on the terms of your consolidation loan – and how much you already owe, chances are that you will pay tens of thousands of dollars more in interest if you choose to consolidate your loan. That's a heck of a lot more than the $100 Sallie Mae wants to grant you a forbearance.
Before considering a consolidation loan, talk to Sallie Mae about their alternative payment programs. There are programs that start out with a lower repayment and increase later, when, hopefully, you have more income – ask them for more information.
Finally, you may find consolidation a very difficult thing to arrange right now. I'm sure you've been watching and listening to the news about this country's banking crisis, if not – you should be. This current crisis is really impacting the student loan business – and there is little or no private educational lending going on right now. It's not just student loans either – I would wish you a lot of luck trying to find a car loan or a mortgage right now, unless you have a substantial income and a sterling credit history.
If Sallie Mae is willing to offer you a forbearance, and you really need it right now, swallow hard and pay the $100. That's the cheapest and most certain alternative for you right now.
Good luck, I hope that helped.
Your lender is correct. I would think the only way you could refinance and get a lower rate would be if you borrowed a new loan from a bank or an equity loan on your house and used those funds to pay off the consolidated loan.
Now if you borrow now you can reconsolidate all your new loans with your old loans but the interest rate will be a combination of the rate on the old loans and the rate on the new loan not what the old loans would be if they were not consolidated currently so unless you borrow a lot more it won't drop your interest that much.
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is:
http://umgarticles.atspace.com/debt-consolidation.htm