For Federal student loan consolidation

For Federal student loan consolidation last date is July 1st
By: Anita Cherry

The interest rate increase for federal student loan will be to
1.84 percentage points by July 1 2006. This increase in interest
rate is based on the auction of 91 day treasury bills on May 30
2006. The change in interest rate was due to new bill which was
incorporated into the recently passed Deficit Reduction Act of
2005, S. 1932, and was signed into law on Feb. 8 by President
Bush. Congress cut $12.7 billion in student-loan subsidies in
February, as part of the $40 billion Deficit Reduction Act, The
legislation cuts a total of $12.7 billion to the federal student
loan program. This is second largest rate increase in the
student loan history. Student-loan borrowers have benefited from
record-low interest rates for years.

Lock in your federal student loan now

Experts in the industry are now advising students to consolidate
their federal student loans before July 1 2006 and lock in at
the current fixed rate which are charging as little as 4.5
percent. Loan consolidation is the opportunity to combine
student loans together into one big loan and lower the monthly
payments. From an older variable rate debt you can now move to
fixed rate. If you're on track to graduate from college this
spring, you should consolidate your federal student loans before
July 1.If you graduated last year but did not consolidate till
now, do it now. If students consolidate before June 30, the
major benefit is that they can lock in at the current lowest
possible interest rate available. It is a good idea to refinance
when you can get a lower rate you'll save money. It is also
advisable to keep off from offers from banks which will
consolidate both federal and private loans. Always keep both the
loans separate. It is because you will loose repayment discounts
from the federal loan if you combine these two.

Student loan interest rate to increase

Consolidation locks in Students Federal Loan Rates before July 1
Increase. Stafford Loan, carries a variable rate that adjusts
every July 1 by adding 2.3 percentage points to the yield on
three-month Treasury bills. The interest rate for the Stafford
Loan is at 4.70 percent during in-school, grace and deferment
periods, and 5.30 percent during repayment. Stafford loans
disbursed on or after July 1, 2006, the new rates will be fixed
at 6.8 percent. The PLUS loan is at 6.10 percent PLUS loans
disbursed on or after July 1, 2006 will be fixed at 8.5 percent.
By consolidating before July 1, students can avoid the interest
rate hikes and lock in a low, fixed interest rate for the life
of the loan. A year ago, for example, consolidation loans were
charging a mere 2.875 percent. Graduating students who
consolidate during their "grace" period - the six-month window
between graduation and the time they're required to start making
payments on their loans will be able to lock in a rate of 4.75%.
In-school students can also take advantage of loan consolidation
now. After July 1, changes in the federal aid regulations will
not allow in-school students to be eligible for loan
consolidation. Only graduating students will be eligible. You
should be making your first student-loan payment after finishing
school and not six months later.

By consolidating at current rates you will be able to reduce by
the total amount you pay if you do not increase the year or term
of your payment. CONSOLIDATION also allows a student or parent
to extend the repayment term at a lower rate but if you extend
the numbers of years to pay too long the total amount you pay
will be higher. Because of rising interest rates in recent years
consolidation and locking in interest rates helps. If you are
consolidating now do not wait till the last minute because the
lenders will be very busy towards the deadline of June 30th and
you might risk missing the deadline. The paper work takes at
least 30 to 60 days and so it is advisable to do it as soon as
possible. You can consolidate federal student loan only once.

For Federal student loan consolidation last date is July 1st

For Federal student loan consolidation last date is July 1st
By: Anita Cherry

The interest rate increase for federal student loan will be to
1.84 percentage points by July 1 2006. This increase in interest
rate is based on the auction of 91 day treasury bills on May 30
2006. The change in interest rate was due to new bill which was
incorporated into the recently passed Deficit Reduction Act of
2005, S. 1932, and was signed into law on Feb. 8 by President
Bush. Congress cut $12.7 billion in student-loan subsidies in
February, as part of the $40 billion Deficit Reduction Act, The
legislation cuts a total of $12.7 billion to the federal student
loan program. This is second largest rate increase in the
student loan history. Student-loan borrowers have benefited from
record-low interest rates for years.

Lock in your federal student loan now

Experts in the industry are now advising students to consolidate
their federal student loans before July 1 2006 and lock in at
the current fixed rate which are charging as little as 4.5
percent. Loan consolidation is the opportunity to combine
student loans together into one big loan and lower the monthly
payments. From an older variable rate debt you can now move to
fixed rate. If you're on track to graduate from college this
spring, you should consolidate your federal student loans before
July 1.If you graduated last year but did not consolidate till
now, do it now. If students consolidate before June 30, the
major benefit is that they can lock in at the current lowest
possible interest rate available. It is a good idea to refinance
when you can get a lower rate you'll save money. It is also
advisable to keep off from offers from banks which will
consolidate both federal and private loans. Always keep both the
loans separate. It is because you will loose repayment discounts
from the federal loan if you combine these two.

Student loan interest rate to increase

Consolidation locks in Students Federal Loan Rates before July 1
Increase. Stafford Loan, carries a variable rate that adjusts
every July 1 by adding 2.3 percentage points to the yield on
three-month Treasury bills. The interest rate for the Stafford
Loan is at 4.70 percent during in-school, grace and deferment
periods, and 5.30 percent during repayment. Stafford loans
disbursed on or after July 1, 2006, the new rates will be fixed
at 6.8 percent. The PLUS loan is at 6.10 percent PLUS loans
disbursed on or after July 1, 2006 will be fixed at 8.5 percent.
By consolidating before July 1, students can avoid the interest
rate hikes and lock in a low, fixed interest rate for the life
of the loan. A year ago, for example, consolidation loans were
charging a mere 2.875 percent. Graduating students who
consolidate during their "grace" period - the six-month window
between graduation and the time they're required to start making
payments on their loans will be able to lock in a rate of 4.75%.
In-school students can also take advantage of loan consolidation
now. After July 1, changes in the federal aid regulations will
not allow in-school students to be eligible for loan
consolidation. Only graduating students will be eligible. You
should be making your first student-loan payment after finishing
school and not six months later.

By consolidating at current rates you will be able to reduce by
the total amount you pay if you do not increase the year or term
of your payment. CONSOLIDATION also allows a student or parent
to extend the repayment term at a lower rate but if you extend
the numbers of years to pay too long the total amount you pay
will be higher. Because of rising interest rates in recent years
consolidation and locking in interest rates helps. If you are
consolidating now do not wait till the last minute because the
lenders will be very busy towards the deadline of June 30th and
you might risk missing the deadline. The paper work takes at
least 30 to 60 days and so it is advisable to do it as soon as
possible. You can consolidate federal student loan only once.

The 411 On Getting A Student Debt Consolidation Loan

The 411 On Getting A Student Debt Consolidation Loan
By: Darnell Scott

Rising tuition fees have given rise to students having to take
student loans. However, these high student loans give a high
impact on the day to day lives of the students. This gives rise
to difficult financial situations for the student during and
after their studies. This is the reason students turn to student
debt consolidation loan to rid themselves of the burden of the
student loans.

Student debt consolidation loan means having the multiple
student loans replaced with a single loan with a lower monthly
payment scheme to be paid over a longer repayment period. Though
a student debt consolidation loan is beneficial, it is important
to know its pros and cons before signing up for one. The huge
students' loans have an impact on your future decisions and on
your credit history. So make it a point to have your student
loan debt not exceed 8% of your income to get a good credit
history.

There are many types of student loans, but the most common
student loans are the private and federal loans. It is not
advisable to go in for student debt consolidation loan by mixing
these two loans together. Instead, it is better to consolidate
the federal student loans and then the private loans,
separately. This is because when consolidating both these kinds
of loans, the federal loan benefits will all be lost.

For one to be eligible for consolidating his/her student loans,
it is important that the person is no longer enrolled in a
school. The person should also be repaying the debt or at least
be in the grace period of the loan. Through student debt
consolidation loan, instead of making multiple payments to all
your lenders, there is only one debt consolidation company to
whom you have to make your payments. It is the job of this
company to pay off your lenders. Interest rates are lowered as
the debt consolidation is a second mortgage, which has lower
interest rates. Lower interest rates lead to lower monthly
payments. And with only one payment, the monthly installment
will be lower too. As you only have to pay a single person, all
clarifications can be made through only one person instead of
approaching all your lenders.

All things have their share of good things and bad points. There
is always a chance of falling into more debt with student debt
consolidation loan. This is because there is only one payment to
be made, with more money remaining at the end of the month. This
may prompt you to use your credit cards and spend money again.
Student debt consolidation programs take a long time to cover,
so you will be spending a good number of years repaying the
loan. Moreover, though the interest rate of the student debt
consolidation loan is low, over the long loan period, you will
actually be spending more than you would have spent if you had
retained the individual loans.

As consolidation loans are secured loans, you stand a chance of
losing whatever you keep as security if you don't repay the
loan. So it can be seen that though student debt consolidation
loan is beneficial, it also has its drawbacks. It is up to the
individual to decide whether to opt for student debt
consolidation loan or not.

7: Where to go for a student consolidate loan!

Where to go for a student consolidate loan!
By: Anita Granøe

Finding a good loan agency is not easy. It will take some luck
and a lot of research to find the right place for any student
consolidate loan. When a person decides that it is time to get
their finances in order, getting all their loans combined will
be the best thing for them in the long run. They will have one
monthly payment and it will not be so hard to keep up with
everything.

Getting out of debt is not easy for a new college graduate.
There are plenty of things for them to have to pay for. The
bills will just keep piling up once the graduation has taken
place. It is now going to be time to grow up and live on your
own. For a lot of students, they have high interest student
loans that they will want to consolidate for a better interest
rate.

Many times there are federal programs where students can go for
help with their loan problems. This may be the way for a lot of
people to get help that they so need and desire. When a student
is looking for a way to find a good interest rate for all of the
loans combined, a student federal loan may be the answer that
they have been looking for.

Many times a credit union has a better interest rate for a
consolidate student loan. For many people, they can get a better
rate and a lower monthly payment when they go here for their
help. This is a good and stable organization that will help with
financial burden and get a person on the payment plan that they
can afford in their budget.

Just starting out after college can be a difficult time. When
there are many bills to pay and no steady employment yet, it can
be frustrating. It is hard to just start out and not have a
plan. When you decide to consolidate student loan, you will have
a better chance at coming out on top in a shorter amount of
time.

Many regular banks also offer good student consolidate loan
programs. Many people go here once they have found a stable
income and can start repaying the student debt that they have
found themselves to be in. Getting it all in one is a smart idea
with a good financial institution that you can trust.

Once you have your student loan consolidated, you will feel more
secure and better able to reach your potential goals in life.
There is no limit to what you can reach when you are financially
secure in life. You will feel better and get more accomplished
in life with a good student consolidate loan.

Student Loan: Loan Magician

Student Loan: Loan Magician
By: Ron Arthur

Loans, loans, loans that's what everyone is talking about, on
internet, on radio, on, television in news we see advertisement
for loans everyday, everywhere. "You want to buy a hat, a cat, a
house, a car, you can get a loan". "Getting loan was never
easier". "Live life the way you want". These are all the
sentences that are clouding the media nowadays. And of course
this has increased the ratio of people borrowing loans from
banks and other lending organizations. A number of people are
making their dreams come true due to these loans, which was
otherwise impossible. You can get loans for multiple things like
for starting a business, purchasing a house, or getting a car so
on and so for. You can simply apply for the loan, buy your
desired object and keep on paying small installments for years
without even noticing it. Instead of waiting for long years of
tough work to buy a house or establish a business of your own
you can get some help from one of the diverse kinds of loans and
benefit yourself from this golden opportunity. Fantasies, dreams
have no end. But in order to actualize them you need enough
resources, now you have several opportunities to do what you
always wanted. For different reasons or things you have varied
kinds of loans. Be careful about the interest rates and other
specifications of a loan. That will help you in generating the
best results financially. You can get loan on really low rates
if you play safe, I mean pay your installments on time and if
you manage to pay it before time that would be more than good
that will drag you in the line of good borrower, which will be
very useful if ever in future you need to get the loan again.
Unsecured loans are the most fascinating and tempting loan kind
that has ever come across my knowledge. You are at minimum risk
especially you are simply free from any possibility of
repossession of your home or any other asset. Whereas on the
other hand the creditors are at high risk by giving you an
unsecured loan as they provide you loan just on the assessment
of your income and repayment capacity and therefore the monthly
installments are a bit higher and the repayment duration is also
shorter as compared to secured loans. But for everything you
have to pay a price, there is nothing free and of course you are
getting money without giving any of your owned possession's
guarantees, which is a very big thing? This doesn't stop here;
you have other benefits too of unsecured loans that can't be
overlooked. First you can find a number of companies who are
offering unsecured loans and thus get it on a very competitive
rate. As for an unsecured loan you are not to provide a number
of documents with the loan application the process of the
approval are much faster than that of secured loans. It can be
obtained in the time span of as short as 72 hours. Besides this
there are other loans you can think of like secured loans but of
course you should be dead sure that you'll pay the loan before
the deadline, as for secured loans you have to put any of your
asset as a guarantee to bank, there are cheap home improvement
loans, house buying loans, small and big business loans,
personal loans, bad credit loans, pay day loans, car loans
etc... there are just few things to keep in mind while applying
or before applying a loan such as the interest rate, type of
rate (fixed or variable), terms and conditions (repayment time
in months or years), deposit (down payment), associated fees
(broker, origination, prepayment etc.), insurance required by
the lender. For best financial results see all the terms and
conditions and be crystal clear about the things and then apply.
This will give you ample tendency to work out your way out
victoriously. Loans are never (most of the times) an effectual,
result-oriented solution for your long term monetary needs!
Taking loans is becoming a fashion, I think more then 50% of
advertisement on media is directly or indirectly about loans.
But frankly speaking I believe loans are not more than debt
traps. There are so many alluring names as payday loans; cash
advance loans, check advance loans, post-dated check loans or
deferred deposit check loans. But beware! Don't charmed by such
attractive offers, think twice about borrowing a loan before you
go ahead with this and honestly realize, do you really need a
loan? Is it inevitable? Is this loan for frivolous, like a
holiday? Or for something real serious an urgent need, Can you
borrow money by a more traditional way, I mean from a relative,
maybe a part-time job or you can think of selling an asset. Try
to convince your creditors for some more time to pay your bills.
Find out what they will charge you for that service - as a late
charge, an additional finance charge or a higher interest rate.
Don't put your foot into a trap yourself if you can avoid it.
Did you ever think why you drag your self in to a situation
where you are left with no money and need loan desperately?
Strive to mend this; if you are a lavish spender and you always
spend more than you earn then it is a terrible practice. To
overcome this condition, if you opt for a payday loan, it will
be a "chancy solution". Payday loan companies often take the
advantages of your need and lead you in debt ensnare. Try to
make a more realistic and practical budget, and figure out your
monthly and daily expenses. Avoid superfluous purchases even
undersized every day items. Their costs add up and may become a
huge amount at times that makes real big difference. Also, put
aside some savings, even small amounts will do to avoid
borrowing for emergencies, unexpected expenses or other such
instances. I know it's simply impossible to write your
requirements in black and white and consume money according to
that but one should make a strict line that you are not spending
more than this and this is only for your own advantage. Check
out if you can go for overdraft protection on your checking
account? If you are a regular most or all of the funds in your
account user so then if you make a mistake in your checking (or
savings) account ledger or records, overdraft protection can
assist in protecting you from further credit problems. Do find
out the terms of overdraft protection. Want any help or working
out a debt repayment plan with creditors or developing a budget,
contact your local consumer credit counseling service. Almost in
every state there are non-profit groups that offer credit
guidance to consumers. These services are available at very
little or no cost. Don't forget to check with your employer,
credit union or housing authority for no- or low-cost credit
counseling programs. If you decide that a payday loan is
inevitable, borrow only as much as you can afford to pay with
your next paycheck and still have enough to make it to the next
payday. While taking a loan it's never only the interest rate to
take care of it's only a part, there are a whole lot of other
inevitable expenses that makes it really, really expensive. The
rate on a payday loan may be 500% per year or even more.
Borrowing 200 dollar for 2 weeks at 500% will cost you 38.36
dollar. Just compare this to borrowing 200 dollar for 2 weeks at
36% (2.76 dollar) or 12% (.92 dollar). Suppose if this loan is
refinanced four times, the cost difference increases
dramatically! In actuality, it will cost you nearly 200 dollar
to borrow 200 dollar for ten weeks. Gosh! It's a lot. Besides
the insurance rate there are also arrangement fees and
prepayment penalties to consider. And many 'no fee' credit lines
have a pre-payment penalty. This is the way broker and lenders
make their money. Do work out the total cost of your loan before
committing? Compare the APR and the finance charge (which
includes loan fees, interest and other types of credit costs) of
credit offers to get the lowest cost. Borrowing loans can be
helpful when you are having temporary cash flow crisis or are
facing a financial emergency and need money on a short-term
basis. Don't rely on loan or don't make long-term planning
depending on loans only. If you already have one loan
outstanding, then you should avoid taking out another such loan.
Also think about the aggravations if you can't be able to repay
the loan at specific date to the payday lender!! I hope you are
getting my point. Now this was what I call a bird's eye view
about the loans advantages and disadvantages. But if still you
are not satisfied and wants to dig in more to know minute
details about different types of loans, I'll give you some info
about it as after all you are the best judge for your own
problems and needs. Doesn't matter what someone says it's always
you who know what you need to do? I have already given you a
transparent idea about secured and unsecured loans. Now else
than this there are home loans, bad credit loan, bad credit auto
loan, personal loan, debt consolidation, payday loan, mortgage
loan, auto loan, student consolidation loan, business loan, home
equity loan and pay day advance. See you can get loan for
anything and everything. There are so many different kinds of
flexible and non-flexible loans that help you to keep going
ahead in life. Loan products. Pay day loan. Hmmm...! The dead
line of paying the installment of a credit card is coming near.
And still didn't get your pay. Well laugh your worries away. The
payday loan will help you to pay on time. After you get your
salary you can pay off your payday loan, but don't make it a
habit? For short-term loan this is the best sort of loan you can
go for. Home loan. Everyone either he is a prince or a commoner
want to own a home of his own, in old days people use to work
whole their lives to buy their own house. But in this struggle
the best boom period of life flies away. Now enjoy your life to
the fullest, get a home loan and build the house of your dreams
and live in it like a king. You can buy, build or renovate a
house by acquiring various types of loans that suits you the
most. There are mostly three kinds of it: * You already own a
house and want to renovate it. You can get a loan for renovating
your house by putting your house for collateral security to the
bank for the loan. * Secondly you have a plot and want to build
your house on it. Then again the place will be the collateral
security and you'll be provided loan to build the structure of
the house on it. * The third type is that you neither have a
house nor a plot and you want to buy a house in that case you
will get the loan to build your house but the house will be on
bank's name till you pay the loan fully. Else than this there
are different rules and flexibilities for diverse home loans.
Like: * The mark-up rate will vary for a salaried person or a
businessman. It can start from 11% for a salaried person and 12%
for a businessman though different banks and other companies may
differ from this rate. * For construction, purchase & balance
transfer you can have 3 to 20 years times to pay back the loan.
* For renovation it can be from 2-20 years. * For home purchase
you can get the amount of loan that can vary from - 0.5M to 20M.
* Whereas for home renovation approximate loan can be form -
0.5M to 7M. * For home construction you can get up to - 0.5M to
10M. This could be the approximate loan to value ratio you can
get for these different home loans. * For Home Purchase - 80:20
for salaried employees, businessmen and self-employed
professionals who maybe in the business for five years and 75:25
for businessmen and self-employed professionals who can be in
the business for last 3 Years. * For Home Construction - 70:30
for salaried employees, 70:30 for businessmen and self-employed
professionals who maybe doing business for last five years and
65:35 for businessmen and self-employed professionals who are in
the business for last three years. * For Home Equity- 70:30 for
salaried employees, 70:30 for businessmen and self-employed
professionals who can be in the business for last five years and
65:35 for businessmen and self-employed professionals who are in
the business for last three years. * For Balance Transfer
Facility - 80:20. Car loan. Car is not luxury anymore it's a
necessity; you are handicap without a car. If you cannot afford
a car with your salary and trying desperately to save some money
for buying a car but unfortunately every month something new
comes up to eat up all your savings then get a car loan and make
your life easy and you can use your savings in paying the
installment of your loan every month. For car loans the rules
are almost same as house loans. The payment will vary with the
difference of new or used car, car model or price. Bad credit
car loan. Happy news for the bad credit raters, now you can also
enjoy the pleasure of shopping the way you want; there is high
competition in those who are ready to give loan to those who
have bad credit rating for car and even for house. Or if you are
doing a business you can still get a loan. Actually roughly all
sorts of loans are open to bad credit rater now. Though they'll
charge more interest rate and other charges but still you have a
facility of loan to enjoy. Student loan. Learning is a weapon no
one can steal. Education is of no comparison with anything, I
think it's a must get thing for everyone. But sometimes due to
monitory resources one has to discontinue his or her education
but now you can freely get education as much as you want, you
just have to get a loan and study to your fill. Student loans
for the benefit of students are on quite competitive rates and
are much more flexible than other loans to provide maximum
chance to a student to be carefree and get education as easily
as possible. Business loan. For more information about Loans
Magician visit: http://www.loansmagician.com

what is student loan

From Wikipedia, the free encyclopedia
• Ten things you may not know about images on Wikipedia •Jump to: navigation, search
Student loans are loans offered to students to assist in payment of the costs of professional education. These loans usually carry a lower interest rate than other loans and are usually issued by the government. Often they are supplemented by student grants which do not have to be repaid.


[edit] See also
Student loans in Australia
Student loans in Canada
Student loans in Denmark
Student loans in Germany
Student loans in Ireland
Student loans in New Zealand
Student loans in Norway
Student loans in Sweden
Student loans in the United Kingdom
Student loans in the United States
Retrieved from "http://en.wikipedia.org/wiki/Student_loan"
What Is A Student Loan?
By: John Mussi


Not everyone is aware of what is a student loan? Student loans, as the name implies, are available to students who require help with living costs while studying.

Student loans are part of the government's financial support package for degree only students embarking on a course of higher education. For most students, a student loan is their largest single source of income. So unless you have very generous parents, you will need to apply.

Regardless of where you are studying, if you are from England and Wales you will apply to your Local Education Authority using an HE1 form. They will then calculate how much you're entitled to receiving – as well as working out whether you need to pay tuition fees.

They will then send you back a form that you need to forward to the Student Loans Company (the government organisation that administers your student loan) who will process your application. This usually takes a month, so make sure you get the paperwork done well in advance of the start of term.

Although it is only a loan, you'll never be able to borrow money more cheaply, so it's the most cost-effective way of borrowing money while you're studying to pay for all those bills. The interest charged is only equal to the rate of inflation.

Unlike support towards tuition fees, you have to repay any loans. The Student Loan is repaid after you graduate (or after you leave the course, should you leave before completing). Repayments are calculated on a sliding scale and are repaid monthly directly to the Student Loan Company.

Should your salary fall below £10,000 payments are suspended until you earn above this figure again whereupon you will recommence payments. Interest on the Student Loan is calculated at a preferential rate which is far lower than any commercial bank loan rates.

Loans have the unfortunate tendency to mount up your debt. If you take the full £4,000 a year for three years that means you'll be £12,000 in debt by the end of your course – and if you're on a longer degree programme, that total could be even higher.


Student Loan Consolidation - How Does It Work?
By: Vanessa McHooley


Student loans are a great source of financial aid for students who need help paying for their education. Unfortunately, students often leave college with burdensome debt. In addition, they often have multiple loans from different lenders, meaning they are writing more than one loan repayment check each month. The solution to this problem is loan consolidation.

What is loan consolidation?
Loan consolidation means bundling all your student loans into a single loan with one lender and one repayment plan. You can think of loan consolidation as akin to refinancing a home mortgage. When you consolidate your student loans, the balances of your existing student loans are paid off, with the total balance rolling over into one consolidated loan. The end result is that you have only one student loan to pay on.

Both students and their parents can consolidate loans.

Should I consolidate my loans?
Loan consolidation offers many benefits:

- Locks in a fixed, usually lower, interest rate for the term of your loan, potentially saving you thousands of dollars (depending on the interest rates of your original loans)
- Lowers your monthly payment
- Combines your student loan payments into one monthly bill

In addition, consolidated loans have flexible repayment options and no fees, charges, or prepayment penalties. There are also no credit checks or co-signers required.

You should consider consolidating your loans if the consolidation loan would have a lower interest rate than your current loans, particularly if you are having trouble making you monthly payments. However, if you are close to paying off your existing loans, consolidation may not be worth it.

How will the interest rate for the consolidated loan be?
The interest rate for your consolidated loan is calculated by averaging the interest rate of all the loans being consolidated and then rounding up to the next one-eighth of one percent. The maximum interest rate is 8.25 percent.

To figure your interest rate, visit loanconsolidation.ed.gov for an online calculator that will do the math for you.

How much can I save?
How much you save by consolidating loans depends on what interest rate you get and whether you choose to extend your repayment plan. According to Sallie Mae, the leading provider of student loans in the United States, consolidating student loans can reduce monthly payments by up to 54 percent. However, the only way to reduce your payment this much is to extend your repayment plan. You typically have 10 years to repay student loans, but, depending on the amount you're consolidating, you can extend your repayment plan all the way up to 30 years. Remember that if you choose to extend your repayment term, it will take longer to pay off your overall debt and you'll pay more in interest. There are no preypayment penalties, so you can always choose to pay off the loan early.

Am I eligible to consolidate my loans?
In order to consolidate your loans, you must meet the following criteria:

- You are in your six-month grace period following graduation or you have started repaying your loans
- You have eligible loans totaling over $7,500
- You have more than one lender
- You have not already consolidated your student loans, or since consolidation you have gone back to school and acquired new student loans

The following types of loans can be consolidated:

- Direct Subsidized and Unsubsidized Loans
- Federal Subsidized and Unsubsidized Federal Stafford Loans
- Direct PLUS Loans and Federal PLUS Loans
- Direct Consolidation Loans and Federal Consolidation Loans
- Guaranteed Student Loans
- Federal Insured Student Loans
- Federal Supplemental Loans for Students
- Auxiliary Loans to Assist Students
- Federal Perkins Loans
- National Direct Student Loans
- National Defense Student Loans
- Health Education Assistance Loans
- Health Professions Student Loans
- Loans for Disadvantaged Students
- Nursing Student Loans

Where can I get a consolidation loan?
You can consolidate your loans through any bank or credit union that participates in the Federal Family Education Loan Program, or directly from the U.S. Department of Education. The loan terms and conditions are generally the same, regardless of where you consolidate. You may want to check first with the lenders that hold your current loans.

If all your loans are with one lender, you must consolidate with that lender.

If you decide to consolidate your student loans, remember that you can only do so once unless you go back to school and take out more loans. Therefore, you will want to make sure you get the best deal the first time. The interest rate will be the same from all lenders, but some lenders may offer future rate discounts for prompt payment and a discount for having monthly payments directly debited from your account.

Can my spouse and I consolidate our loans together?
You can consolidate your loans together, but it is not a good idea for a couple reasons:

- Both of you will always be responsible to repay the loan, even if you later separate or divorce
- If you need to defer payment on the loan, both of you will have to meet the deferment criteria

When should I consolidate my loans?
You can consolidate your loans any time during your six-month grace period or after you have started repaying your loans. If you consolidate during your grace period, you may be able to get a lower interest rate. However, since you will lose the rest of the grace period, it is a good idea to wait until the fifth month of the grace period before consolidating. The consolidation process usually takes 30-45 days.

This article is distributed by NextStudent. At NextStudent, we believe 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 as easy as possible. We invite you to learn more about how to get Student Loan Consolidation at http://www.NextStudent.com .


Student Loan Consolidation
By: Terje Ellingsen

Student loan consolidation is one of the most used methods for reducing and working off student debt. If you want to consolidate debt, whether it’s a student loan debt or not, you have to follow a certain process. However, this process is easy to follow and will absolutely not require big efforts from your side.

Here is what you have to know about the consolidation process: You combine all of your various student loans into one large loan. Instead of paying toward all your loans each month, you make one payment towards this one loan. So, what will I gain with this, you may ask. If you compare the numbers before and after you have consolidated your student debt, you'll understand that it's a very good deal.

To start out the working career with an overwhelming amount of debt is a daunting prospect to put it mildly. But the fact is that many college graduates unfortunately are facing this situation. Fortunately consolidating your student loans is a great way to meet the challenge of getting rid of the burden of debt from school or college.

The main benefit of consolidation is that you’ll normally pay a lower interest rate then compared to what your various loans are already set at. This works the same way as refinancing a home in order to have a lower mortgage payment. And be aware of the fact that the current interest rate is the lowest it has been in almost 40 years. When you do a consolidation you’ll pay one interest rate, not several different rates. And at the time you took these loans, the rates were probably higher.

And this means money saved: A lower interest rate on a relatively big loan can save you thousands of dollars in the long run. And in addition to this, some lending companies offer rate reductions for students consolidating their loans while they are in their grace period. A warning though: Stay away from companies that require you to start your payment immediately after the grace period. There are financing companies out there that don’t require this. Go to them!!!

And as if this wasn’t enough, some companies even offer additional rate reductions. I have heard about companies that reduce your rate by one percent if you make all of your payments on time for two years. And this comes in addition to the discounts described above. One percent may seem small, but if you see it in a perspective of, let’s say 20 years, which is a normal payback schedule, it can mean lots of dollars saved.

Another benefit with student debt consolidation is saving time and effort. It’s much easier to handle one payment monthly than several separate payments.

A convenient way to do the monthly payments is to let the loan company deduct it directly from your bank account. Some companies allow that. And if it is a really good student loan consolidation, it will even give you a little interest rate reduction by handling your loan payments this way.

So, if you find that loan consolidation is (in) for you, your challenge is to decide which loan consolidation company to approach and finally select. What I would recommend is that you make a list of all the questions you might have, call a few companies and speak with their representatives. Or you can go online to find a good student loan consolidation company. There are some great companies out there.