Student Loans

Consolidating Federal Student Loans Keeps Graduates on Course

admin — Mon, 10 Mar 2008 13:18:01 +0000

Although many people have achieved the dream of completing their college education, many of them face an unfortunate downside following graduation: paying back the inevitable student loan.

Too often it is not just one loan looming over students, many of whom have yet to settle into the sometimes overwhelming realities of the workforce and daily life.

NextStudent, one of the nation’s premier education funding companies, can be the proverbial light at the end of the tunnel by helping students consolidate their multiple federal loans. From Stafford Loans and Perkins Loans to PLUS Loans and HPSL Loans, NextStudent’s Federal Student Loan Consolidation Program equals convenience. (more…)

College Debt - how to avoid it, and how to get out of it

admin — Mon, 10 Mar 2008 13:17:23 +0000

Because most college students are using loans to finance their college education, the debt level of recent graduates is rising rapidly. On average, students graduate owing $12,000-$16,000 in student loans and another $2,000 in credit card debt. Is this the price you have to pay for higher education, or can you avoid college debt in the first place?

The secret to avoiding college debt is to plan wisely and take advantage of the many opportunities to reduce college costs before and during your college years. (more…)

Private Student Loans - dispelling the myths

admin — Mon, 10 Mar 2008 13:16:20 +0000

At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students graduating with an unmanageable debt load. An alternative is for parents to help out by taking out loans themselves. But which is the better option - student loans or parent loans? Each has distinct advantages and uses.

Federal student loans

Federal student loans have the lowest interest rates and best repayment options. If you need to take out loans and you qualify for federal loans, this is your best choice. Just be sure to accept only the funds you need, even if you are offered much more. Parents can always help their children pay off these loans once repayment begins after graduation. (more…)

Parent Loans or Student Loans - what is going to be best for my child?

admin — Mon, 10 Mar 2008 13:15:52 +0000

Federal student loans

Student Loans are Better than Credit Cards

admin — Mon, 10 Mar 2008 13:15:16 +0000

You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books, or do you apply for a federal or private loan? Well, consider the options -

With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.
With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.
With a credit card, on the other hand, the interest rate can be as high as 21%. Interest begins accruing almost immediately, and you need to begin paying off the bill the next month.

(more…)

College Loan Consolidation - Why NOW is the Best Time

admin — Mon, 10 Mar 2008 13:14:42 +0000

If you are thinking about using loan consolidation to possibly lower your monthly student loan payments, then now is the time to start consolidating and lowering those payments. Never in recent history have the interest rates on student loan consolidations been quite as low as they are these days. What does that mean for you? Quite simply, you will be receiving the best available deals for debt consolidation when you choose to consolidate your student loans now and here. Whether you have just a small amount of student loan debt or a very large amount, consolidation can start helping you to lower your monthly payments NOW if you get started on it right away. (more…)

College Savings Plans – are they the best choice for my child?

admin — Mon, 10 Mar 2008 13:14:12 +0000

You need some more money for college expenses this semester. Do you whip out a credit card to pay for your books, or do you apply for a federal or private loan? Well, consider the options -

With a federal loan, your interest rate will be low (around 5%) and your payments will be deferred until 6-9 months after graduation.
With a private loan, the interest rate will be slightly higher than with a federal loan but will still be lower than average. In addition, you will only need to make interest payments until after graduation.

(more…)

Student Loan Consolidation – How does it Work?

admin — Mon, 10 Mar 2008 13:13:39 +0000

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.
(more…)

Federal Student Loans versus Private Student Loans – which is best for me?

admin — Mon, 10 Mar 2008 13:13:04 +0000

College Savings Plans, also called Section 529 plans, are one of the best ways to save for college because they offer:

Tax advantages

A variety of investment options

Flexible contribution options

Parental control

Little impact on eligibility for need-based financial aid

Tax advantages

Investments in 529 plans are usually exempt from federal taxes. Earnings are tax-deferred and are not subject to capital gains taxes. Redemptions are also exempt from federal income tax if they are used to pay for tuition, room and board, fees, books, supplies, or equipment.

Most states also offer tax advantages, at least if you enroll in the plan for your own state. In addition, contributions may be deductible on your state income tax.
(more…)

Private Loan Consolidation

admin — Mon, 10 Mar 2008 13:12:19 +0000

College life teaches you how to stretch a dollar, how to make a pizza cover breakfast, lunch, and dinner, and how to get the most out of your money. That said, when your college education is over and achieved, the student loans following it should not last a lifetime and follow you throughout your career!

Consider Consolidating Your Loans and Save

Rather than lug around student loans for years to come, why not consolidate all your different student loans into one private loan consolidation that makes it easy for you to pay off your student loans with just one low monthly payment every month. Six months after you graduate, you can be sure that creditors will be banging down your door, looking for your first payment towards your student loans. Whether you borrowed from a bank, the government, or through some other private means, student loans add up quickly. A private loan consolidation allows you to take all of your student loans and throw them into one general debt - this way, you can make payments towards that debt and only have to deal with one private company, instead of 2, 3, 4, or 5 loan firms and/or creditors. (more…)