Rates for student consolidation loans are combative and they can be easily found through traditional lender or online on internet. Government also provides competitive student loans rates that are quite competitive with the private sector. The rates of student consolidation loans that are offered by the government are fixed and allow students to pay only one payment per month that is the average of all debts. A grace time period is assigned to the person who has finished his/her education to obtain a potential job. This time period is from six to nine month.
Find Best Consolidation Package There are various consolidating packages available that are offered by many different lenders. By taking advantage of consolidating rates students can get rid of several loans and they can merge their different loans in one payment. One can easily check the quotes for these consolidate rates and compare these various available options. The federal government is also offering consolidation programs to facilitate students to pay their debts. To find the suitable program for you is the most difficult part of consolidating. You can use the option of comparison shopping to find the best suited consolidating program for yourself. A large quantity of information is available on internet regarding these programs and it is facilitating thousands of students. Online brokers are also there to help students to find the best payment options and find quotes for student consolidating rates. The rate of getting consolidating debts is getting high day by day and more Americas are getting these loans. Through consolidation rates you can get control over your budget. If one have burden to pay several different loans at a time then they can take consolidate loans. You can take information from internet and from several lending companies. Article source: http://www.fairloanrate.com
Friday, February 5, 2010
Saturday, January 30, 2010
Online Student Loans
A student loan is a loan that is granted to a college student enrolled in courses full or part time for at least one semester or quarter and who have declared a major with the intent of pursuing a degree of higher education. Student loans can be granted through various lenders with a governmental guarantee, or can be granted from private lenders with no guarantee. Some student loans do not require a parent's signature, while others do. The government guaranteed student loan is classified by two types, subsidized and unsubsidized. The subsidized student loans have a yearly limit and allow for the government to pay the interest on the loan while the student is in school. The unsubsidized student loan allows for a higher yearly limit, but the student must pay the interest while in school, or the accrued interest will be added onto the balance of the loan and is the responsibility of the student during repayment. A student loan can be deferred while the student is in school half time indefinitely. Private student loans usually have a set period of deferment, 2-5 years, and then the student must begin repayment regardless of whether or not they have completed their education. Currently, student loans have the best interest rates in town. As the interest rate index rises, so will the student loan rate. During low rate times, many scramble to consolidate their student loans. This saves a tremendous amount of interest in the long run, since a student loan repayment plan can extend over 25 years depending on the loan balance. Those students with an extremely low student loan balance ($5 ,000 or less) usually only have the typical 5 or 10 year repayment option. A student loan is eligible to be used for tuition, books, on campus housing and childcare expenses. Some student loans allow for the purchase of an automobile to get to and from school, or other pertinent school materials such as a computer or to pay off other student loan debt. Many students today are counting on student loans for their education. What they are not realizing when they sign the student loan promissory note is the debt they are incurring for a very long time after their schooling has been completed. The average student loan balance is upwards of $50 ,000 for a four year degree. Add to that professional education costs, and some students will have over $150 ,000 in student loan debt. While the investment of an education is always a wise idea because investing in one's mind will never diminish in value, the costs associated with this investment and the income expected to earn should be carefully evaluated. Some careers do not warrant a high enough salary to repay the loans. Grants and scholarships should always be considered as alternatives to obtaining student loan debt. For more information, visit: http://www.christianet.com/articles/ http://www.christianet.com/ Article Source: http://EzineArticles.com/? expert=Christian_N
Thursday, December 10, 2009
Student Loan Law
A good news for past, current or future loan takers with a new amendment to renegotiate your monthly student loan repayment bill to a maximum 15% of your discretionary income.
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These new benefits will be affected from 1 st of July. This will regulate the student loan payments for millions of Americans. These benefits were signed into law in 2007 as part of College Cost Reduction and Access Act. They include:
Low interest rates on need-based (subsidized) federal student loans. From 1 st of July the interest rates on subsidized federal student loans will decrease from 6% to 5.6%. That's 2 nd from four annual cuts in this interest rate and it will continuously decrease down to 3.4% till 2011.
Affordable monthly college loan payments plan for borrowers. The implementation of this new Income-Based repayment program will be effected from 1 st July, which allows borrowers to pay just 15% of their discretionary income (15% of what a borrower earns above 150% of the poverty level for their family size). The current or future borrower whose loan payment will be greater than 15% of their discretionary income is eligible. After 25 years in the program borrowers debts will be completely forgiven.
Pell Grant scholarships covering the average tuition at public universities. The maximum Pell Grant scholarship for the 2009/2010 school year will be $ 5,350 which is $600 more than last year's award and funding will be provided by both the College Cost Reduction and Access Act and the American Recovery and Reinvestment Act.
This incentive will help the students and the borrowers to take advantage of other recent programs enacted under the law, which will make it easier for graduates to go into public service fields while grasping student debt. For encouragement of students the law provides up-front TEACH Grants for tuition assistance from $4,000 a year up to $16,000 maximum that's for students who will be teaching high need subject areas in high need schools after their graduation for four years. These beneficial grants were started 1 st in 2008/2009 school year.
Various recent surveys have shown interest of students in public service jobs. There is a programs for graduates who enters in public service careers like teachers, public defenders firefighters etc. will be eligible for complete loan forgiveness after 10 years if qualifying public service and loan payments.
Who benefits?
The interest rate cut...
Almost 5.5 million students borrow federal student loans every year. Half of these borrowers belong to the families whom income is between $26,000-68,000 as described by Congressional Research Service.
38% African-American students take federal student loans every year.
25% Hispanic students take out need-based student loans every year.
The Income-Based Repayment program...
Its hard to give any perfect estimation, approximately in end of 2008 there were almost $556 billion in outstanding federal loans which were having almost 95million student loans and more than 30 million borrowers. Almost 8.9million students borrowed federal loans in 2008.
The Pell Grant Scholarship...
Almost 6 million students got the Pell Grant scholarship in 2007/2008school year and in them 75% students were those who had their family income below $30,000.
47% African-American students receive the Pell Grant scholarships every year.
37% Hispanic students receive the Pell Grant scholarship every year.
Who is eligible For Income-Based repayment?
Current borrowers who are paying back federal student loans and new borrowers whose debt increase 15% of their discretionary income. Mostly the borrowers who haves heavy debt loads or not having well paying jobs will qualify.
The program covers all federal loans - both Direct and federal Family Education loans - made to students, including Stafford, Grad PLUS and federal consolidation loans, but not those made to parents (PLUS loans). Perkins loans are also eligible if a borrower consolidates them into a FFEL or Direct Loan.
Last thing is that the borrower must be having more debt comparing to his income to qualify for a reduced payment. For example if a borrower earns 150% below of their poverty level for their family size, then he have to $0. If they earn more then their payment will be capped at 15% of whatever their income is over that amount.
Article source:http://edlabor.house.gov/
imgThese new benefits will be affected from 1 st of July. This will regulate the student loan payments for millions of Americans. These benefits were signed into law in 2007 as part of College Cost Reduction and Access Act. They include:
Low interest rates on need-based (subsidized) federal student loans. From 1 st of July the interest rates on subsidized federal student loans will decrease from 6% to 5.6%. That's 2 nd from four annual cuts in this interest rate and it will continuously decrease down to 3.4% till 2011.
Affordable monthly college loan payments plan for borrowers. The implementation of this new Income-Based repayment program will be effected from 1 st July, which allows borrowers to pay just 15% of their discretionary income (15% of what a borrower earns above 150% of the poverty level for their family size). The current or future borrower whose loan payment will be greater than 15% of their discretionary income is eligible. After 25 years in the program borrowers debts will be completely forgiven.
Pell Grant scholarships covering the average tuition at public universities. The maximum Pell Grant scholarship for the 2009/2010 school year will be $ 5,350 which is $600 more than last year's award and funding will be provided by both the College Cost Reduction and Access Act and the American Recovery and Reinvestment Act.
This incentive will help the students and the borrowers to take advantage of other recent programs enacted under the law, which will make it easier for graduates to go into public service fields while grasping student debt. For encouragement of students the law provides up-front TEACH Grants for tuition assistance from $4,000 a year up to $16,000 maximum that's for students who will be teaching high need subject areas in high need schools after their graduation for four years. These beneficial grants were started 1 st in 2008/2009 school year.
Various recent surveys have shown interest of students in public service jobs. There is a programs for graduates who enters in public service careers like teachers, public defenders firefighters etc. will be eligible for complete loan forgiveness after 10 years if qualifying public service and loan payments.
Who benefits?
The interest rate cut...
Almost 5.5 million students borrow federal student loans every year. Half of these borrowers belong to the families whom income is between $26,000-68,000 as described by Congressional Research Service.
38% African-American students take federal student loans every year.
25% Hispanic students take out need-based student loans every year.
The Income-Based Repayment program...
Its hard to give any perfect estimation, approximately in end of 2008 there were almost $556 billion in outstanding federal loans which were having almost 95million student loans and more than 30 million borrowers. Almost 8.9million students borrowed federal loans in 2008.
The Pell Grant Scholarship...
Almost 6 million students got the Pell Grant scholarship in 2007/2008school year and in them 75% students were those who had their family income below $30,000.
47% African-American students receive the Pell Grant scholarships every year.
37% Hispanic students receive the Pell Grant scholarship every year.
Who is eligible For Income-Based repayment?
Current borrowers who are paying back federal student loans and new borrowers whose debt increase 15% of their discretionary income. Mostly the borrowers who haves heavy debt loads or not having well paying jobs will qualify.
The program covers all federal loans - both Direct and federal Family Education loans - made to students, including Stafford, Grad PLUS and federal consolidation loans, but not those made to parents (PLUS loans). Perkins loans are also eligible if a borrower consolidates them into a FFEL or Direct Loan.
Last thing is that the borrower must be having more debt comparing to his income to qualify for a reduced payment. For example if a borrower earns 150% below of their poverty level for their family size, then he have to $0. If they earn more then their payment will be capped at 15% of whatever their income is over that amount.
Article source:http://edlabor.house.gov/
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