ArticlesBase.com - Free Articles Directory
Free Online Articles Directory
29.08.2008 Sign In Register Hello Guest
Email:
Password:
Remember Me 
forgot your password?


Is Student Loan Consolidation Good?

Author: Ron King Author Ranking Silver | Posted: 22-02-2006 | Comments: 0 | Views: 380 | Rating:  (50) Article Popularity - Green (?) Got a Question? Ask.
Sign Up Now!

Consolidating your student loan(s) is one of the smartest things that you can do. You should consider a student consolidation loan if you have several federal student loans or even just one large one.

Student consolidation loans will have fixed interest rates which are similar to those of the loans that are being consolidated. The amount that you can save through consolidation can be up to 58%.

Federal Stafford loans, Federal Direct Loans, Federal Perkins Loans as well as many others can be consolidated. Most of the time, they already have low rates.

Advantages

- You will have a single loan payment which is often lower than what you currently pay. - It is easy to set up. - It will help lower your debt burden. - You can secure the lowest interest rate at the time. - It can help you qualify for new or renewed deferments.

What To Consider

When you consolidate, make sure that the interest rate that you are offered is lower than your current rate. You want to pay off your student debt easier and maybe quicker too.

While consolidation can simplify the loan repayment process and lower your monthly payment, in the long run it usually increases the total amount that you will have to pay.

Student loan consolidation provides lower monthly payments by allowing you to spread the loan over 30 years in some cases. You are paying more payments, so be sure to compare the total cost of repaying your unconsolidated loans with the cost of repaying them through the consolidation loan.

The process of consolidating is very flexible. Consolidation is available from before you graduate down through years of repayment.

First, you need to gather information about your current loan. You need to know the balances and the interest rates, the names and addresses of companies and the names and addresses of personal references. The National Student Loan Data System can help provide you with the information that you need since it holds the most complete and accurate information for federal loans.

Paying Them Back

You will have 2 options to pay these loans back. 1. Pay a standard amount each month. This will include principle and interest. This is the lowest cost of interest paid way to go.

2. Or a graduated repayment. Here you start with lower payments that are only interest, but then they will keep increasing.

Usually repayment of your consolidation loans will begin in 60 days and will take from 10 to 30 years to fully pay back.

There are some questions that you should ask the lender before going forward.

- is there a rate reduction, for example for making your payments online or on time?

- does the loan meet your specific needs?

- is that the best interest rate available?

To get a student loan consolidation, you can still be enrolled in school or graduated. Either way, you'll find many lending options that will fit your needs.

Rate this Article: Current: 0 / 5 stars - 0 vote(s).

Article Source: http://www.articlesbase.com/finance-articles/is-student-loan-consolidation-good-16058.html

Print this Article Print article   Email to a Friend Send to friend   Publish this Article on your Website Publish this Article   Send Author Feedback Author feedback  
About the Author:
Visit Consolidate loan for more. Ron King is a researcher, writer, and web developer, visit Articles for authors. Copyright 2006 Ron King.
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Comment on this article Comment on this article
Your Name
Your Email:
Comment Body
Enter Validation Code: Captcha


Related Articles

As July 1 Deadline Nears, NextStudent Offers In-School Consolidation as low as 2.5 Percent
By: Jeff Mictabor | 16/06/2006 | College and University
In less than three weeks on July 1, 2006, student loan ( http://www.nextstudent.com ) borrowers no longer will be able to consolidate their student loans at the current low interest rates, as an increase of 1.84 percentage points will take place. The increase was revealed May 30, 2006 at the auction of 91-day Treasury bills

Student Loan: Pursue your Education Without Any Tension
By: Antonio Vargas | 29/10/2007 | Loans
Student loan is a way for the borrower students to take up money to finance their educational needs. It is an unsecured loan which is collateral free by nature. Repayment is to be done only after the borrower completes his course of study and gets employed.

Student loan consolidation: look this gift horse in the mouth.
By: Ian Mcallister | 11/10/2005 | Debt Consolidation
Student loans? Who needs them? Take charge of your money for the rest of your life.

Students Should Consolidate Student Loans Before July 1 Following Repeal of Single-Lender Rule
By: Jeff Mictabor | 22/06/2006 | College and University
The single-lender rule was repealed June 15, 2006 when President Bush signed the emergency supplemental spending package, H.R. 4939, into law, following the Senate's approval. In a vote of 98-1, the Senate passed the bill earlier in the day after it passed the House June 13 with a vote of 351-67.

Student Loan: Shore Up for Students
By: Antonio Vargas | 01/11/2007 | Loans
The student loan is a financial aid intended for the higher education of the student. The support from student loan let them concentrate on their studies without befalling any financial disruption. Loan amount can be availed without or with using collateral irrespective of bad credit.

NextStudent's Graduate Plus Student Loans Help Students Attain an Even Higher Education
By: Jeff Mictabor | 07/07/2006 | College and University
For college students who desire to attend graduate school but do not think it is in their financial reach, there is an alternative. Students can easily actualize their goals through a program that features the benefits of a parent student loan but funding that is distributed directly to the student, according to NextStudent, the Phoenix-based premier education funding company.

Student Loan Borrowers Save More With Nextstudent's Consolidation Program
By: Jeff Mictabor | 15/09/2006 | College and University
Student borrowers who may have missed the July 1 deadline to consolidate their student loans before the interest rate increase need to know they still can consolidate at low rates especially if students are in their grace period. NextStudent, the Phoenix-based premier education funding company, advises students with federal Stafford loans issued prior to July 1 to consolidate today and automatically receive a .6 percent reduction on already low rates.

Educational Loans: Offers Financial Support
By: Antonio Vargas | 11/07/2007 | Loans
Educational loans help all the deserving students who are denied an opportunity to pursue higher education just because on non availability of financial support.

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

What affect does a default on a USA mortgage have ...
By: occasions | 19-10-2007
What affect does a default on a USA mortgage have on UK credit rating, if any? RW

How bad does a foreclosure on a income property ...
By: billdo | 13-10-2007
how bad does a foreclosure on a income property affect my credit and how long before my credit will begin to reset?

Can someone staying outside uk apply for private ...
By: talk2dekky | 12-10-2007
can someone staying outside uk apply for private loans to study in any country.

I have an outstanding payday loan and my job was ...
By: jazzie | 09-08-2007
i have an outstanding payday loan and my job was called and then someone called said they was an officer and left a message and said that i am a fraud and the police was coming to arrest me for fraudulent activities and then i called them and they said that a case being filed against me for fraud and that a case is pending now i am in jepeorday of loosing my job can they do this

Where in the bible does it talk against going to ...
By: musician901 | 26-07-2007
Where in the bible does it talk against going to loan companies? 

Website for US entrepreneurs
By: clavin.newman | 24-03-2007
Is there a website for the United States that is like Kiva for the developing world?

Q&A Powered by:
Powered by Yedda 

Latest Finance Articles

Why Finding the Right Coin Price Guide is Important
By: Gareth Bray | 29/08/2008
If you're new at coin collecting, you might find yourself overly excited at the prospect of finding or holding a coin that's priceless. Some coins are worth more than others, while other coins are not worth anything at all. To help you figure out if what you have is treasure...

The How and Why Behind Online Stock Investing
By: Jack Benson | 29/08/2008
Do you want to get involved in stock trading? The modern and easy way to do it is online. Let's explore a bit of the history of stock trading. The first continuous stock exchange trading took place in Amsterdam during the 17th century. Before this stock exchange, during the 13th century...

Benefits To Refinancing Your Mortgage
By: Edwin Hezron | 29/08/2008
A lot of people don't really understands what it means to refinance your mortgage, Though it a popular term but it has been greatly misunderstood.Despite the several factors that may influence it, there are different benefits to refinancing your mortgage. Refinancing your mortgage has a lot of advantages in this our...

Finding Finance Inside Your Business
By: Rakesh Gaikwad | 29/08/2008
Many businesses are finding it increasingly difficult to secure funding for expansion at the moment due to the credit crunch, but there are still ways to raise the money that you need for expansion. The first thing to remember about borrowing money is that you will need to be able to...

Try An Asset Protection Trust In Mauritius To Pass Your Assets On To Your Family!
By: Ramapati Singhania | 29/08/2008
Asset protection trusts are time tested legal instruments to save your wealth and pass it on to whomever you choose.

Why You Need To Avoid Repeated Finance Applications
By: Peter Kenny | 29/08/2008
Over recent months lenders have had to really tighten up on their lending criteria, and this means that many of those that may have been eligible for a credit card, loan, mortgage, or car finance last summer may now find that they encounter real difficulties when it comes to getting the credit that they need

How To Use Debt Consolidation To Get Yourself Out Of Debt
By: Peter Kenny | 29/08/2008
With the increased costs of energy, fuel and food, more and more homeowners are finding themselves in financial difficulty having to cope with these rising prices as well as higher payments on their mortgages because of higher interest rates charged by lenders

Make Sure You Get A Fair Price For Your Home
By: Peter Kenny | 29/08/2008
Most people have heard that the property market has slowed down considerably over recent months, with a number of factors affecting the level of property sales that are being seen. Estate agents have reported very poor property sales, and many homeowners are struggling to try and sell their properties

More from Ron King

Shea Butter - Acknowledged as One of the Best Anti Aging Skin Care Applications for Your Skin
By: Ron King | 13/06/2008 | Anti Aging
Shea butter is natural fat educed from the fruit of the shea tree. It is particularly recognized for its cosmetic properties as a moisturizer and emollient. but shea butter is a primary ingredient in numerous products.

Steps to Quit Smoking - Discover the Gradual Way to Stop
By: Ron King | 11/06/2008 | Addictions
Social attitudes towards smoking have altered dramatically in the past few years. All smokers are well aware of these and are continuously researching easy ways to stop smoking--just like you!

Acupuncture to Quit Smoking - Herbal Treatment Can Help Withdrawl Symptoms
By: Ron King | 06/05/2008 | Quit Smoking
The ancient Chinese method of pain relief and medical treatment--acupuncture-- is in fact over 3,000 years old. The method of utilizing extremely thin, disposable needles to activate certain pressure points that achieve desire effect, is part of the reason why people seek acupuncture to quit smoking. It relaxes the body while producing chemicals that flush out harmful toxins, yet produce the same euphoric feeling people normally get from smoking.

Scrapbook for Kids - a Fun Activity
By: Ron King | 05/05/2008 | Hobbies
Mementos including cards, photos and other paper materials can now be simply turned into scrapbooks, which are a original and fun method to display your family memories. For kids scrapbooking is a wonderful way to combine many facets of graphic arts. In this article we will explain how to design a scrapbook for kids, creating projects that will turn crafts into delightful memories!

About Face Skin Care - Some Important Information
By: Ron King | 05/05/2008 | Skin Care
Life today is very hectic and a polluted environment can wreak havoc on our appearance. Personal care and hygiene, specifically skin care, is undoubtedly extremely important. Obviously, the face is our first impression on others. Thus, it becomes essential to learn about face care to keep it healthy looking.

Weddings - Let's Talk About Double Ceremonies
By: Ron King | 05/05/2008 | Weddings
Where two people pledge their love for one another in a service that is recognized by law, it is called a wedding; the attitude of western populations towards marriage has undergone many changes recently. The ceremony is an opportunity to perform a traditional service and celebrate with friends and family.

Makeup Techniques - Create Bigger and More Dramatic Eyes
By: Ron King | 02/05/2008 | Cosmetics
Interested in using makeup but don't know where to begin? Learning some easy makeup techniques, particularly how to apply eye makeup, is something that can boost your self esteem and help you to create exactly the look you desire. Read ahead for some hot suggestions for makeup application.

Credit Card Debt - How to Salvage Your Situation
By: Ron King | 01/05/2008 | Debt Consolidation
If you have found yourself living with credit card debt then you are not alone; the ease with which they can be used had to cause problems at some point. When you owe thousands of dollars then you need to seriously consider ways to pay off the debt before it gets too late. As soon as a person realizes the problem they are facing they should seek credit card debt relief at the earliest opportunity.

Article Categories






Give Feedback

Sign up for our email newsletter

Receive updates, enter your email below