If you have heard that you can get debt forgiveness for a student loan then you have heard right. It is obviously not easy as the government has been paying you for years to go to college and you have to give something back but it does not necessarily have to be your money. The government would like something out of the deal which I think is fair enough if they are going to forgive your student loan debt. Here are the two main options that people have taken and really enjoyed.

Join the Peace Corps – The Peace Corps is a charitable organization ran by the United States to help developing countries. What you do to get your debt forgiven here is to give your time to helping a cause that the government runs. The longer and more effort you put in, the more that they will reduce your student loan debt by. This is a great opportunity for those who want to seek new foreign cultures and experience something totally new whilst reducing their debts. It really is a dream job.

Military Service - Another more obvious organization that is ran by the United States government is the military service. This is a great idea for those who are from a military background or who have thought about spending some time in the military whilst traveling the world. Imagine all the experiences you would have and the discipline that you would learn that would equip you for life in the real world after college, they are valuable life skills. Plus you get debt forgiveness for student loan.

To learn how to pay of your student loan and get the great feeling of freedom that comes with paying off your student loan, Click here for Debt Forgiveness For Student Loan.

Student Loan Forgiveness FAQ:

Question: Can there be student loan forgiveness for moms who decide to stay home to raise their children?
There is student loan forgiveness for people who do volunteer work or for teachers who teach low-income children, so why not for moms who have no income of their own, and choose the non-paying job of raising children?

Answer: Would this apply to all stay at home moms? I’m a stay at home mom with no income of my own. Would I qualify? Now my husband has an income. I’m still a stay at home mom with no income of my own. This is one major problem with the idea of loan forgiveness for stay at home moms. It would be ridiculous to allow someone with my household income to not pay a loan. And this isn’t even touching the fact that all of us have the option of working or staying home. For those of us who choose to stay home we still have to be responsible to our debts. If we give special treatment based on being a stay at home mom we do a HUGE disservice to the working moms who struggle with bills. If anyone should be given debt forgiveness it should be people like Johnny’s Mommy who work damn hard outside the home and struggle with bills because of a father who doesn’t pay regular support or not enough, plus raise a good child after work. Those of us blessed enough to be able to stay home don’t deserve more breaks in life while good people like that struggle.

Question: How could I achieve student loan forgiveness?
I am graduating with a master’s degree in civil engineering in May and I owe $50,000 in student loans. They are all Federal Staford loans; half unsubsidized and half subsidized. I’ve seen partial loan forgiveness programs for the state of Missouri. However, I live in Texas so this doesn’t help my situation at all. Any thoughts?

Answer: Student loan forgiveness is hard to achieve, basically you either have to 1. Die or 2. Become totally and permanently disabled. Your lender will have more information on other programs to get your loan discharged …. like teaching poor kids in high risk schools and such. Call them and see what they say…

However, congratulations on earning your degree!!! Its time to go out and WORK to pay off those loans. This is why you went to school in the first place, to be able to be self supporting and pay your bills. Pay your loans back happily and proudly, because of them you were able to get an education and this will give you a more stable and comfortable life.

Question: I am looking for ways to get Student Loan Forgiveness Do you know how?
I have seen programs in the past where if you Teach for a year x amount of your student loan would be erased (paid off). I have also seen a program with the state department. Does anyone know of any other programs?

Answer: Here’s one of the best kept student loan repayment secrets and employment benefits — many employers will help pay off student loans as part of an employment incentive contract. Indeed, numerous employers, such as state agencies, colleges, hospitals, law firms, and law enforcement agencies in needy locations, provide student loan repayment standard salaries and benefits.

Most of the ‘forgiveness’ programs are actually payment options. Certain jobs, teachers for example, will reduce, but not eliminate the loan, or give you more time before the payment comes due. Lots of places advertise ’student loan forgiveness’ but they are high interest loan companies that get the government off your back by paying your loan and then you have a lower payment, but you will pay back 3 times as much after interest rates.

Question: How does a military vet find student loan forgiveness programs, or grants?
I’ve got an old student loan that I just cant afford to pay of, the lender keeps changing.

Answer: As far as I know there is no program for Vets. The only thing you can dispute is if your military service interfered with the completition of the class. You should be able to set up a payments plan.

Question: Does anyone have a list of school districts that offer student loan forgiveness?
I am looking for a list of any school districts that may be available on a website that you might know of that offer student loan forgiveness if you teach there for a certain amount of time.

Answer: Contact your student loan lender, they will know or point you to where you can look it up.

Question: Where do I go to get info on student loan forgiveness if I work for a non for profit organization?
I have worked for a non for profit organization for several years I know that there is a program that will forgive my student loans I just don’t know who or what it is.

Answer: I know that APLE is a site for teachers, maybe there is a program that will help with npo’s. Check out your state’s department of education website and see if there is anything available.

Question: Where should I start to seek student loan forgiveness for the disabled?
I have been on disability for several years and as a result of a judgment against me, my SS disability checks are being garnished. I know there is a system in place for this; just having a heck of a time finding it.

Answer: You would want to contact your lender directly. They would give you the information necessary as far as who to contact regarding loan forgiveness.

Question: How can I get student loan forgiveness for the following situation?
I have worked as a therapist for inner city children and their families in state custody for at least five of the past seven years.

Answer: You may not be able to get forgiveness. Forgiveness is generally only for teaching in low income areas. However, contact your servicer or lender for this one and ask. But if you have been working for a for-profit agency you may not qualify. Non-profit agency employment would be a must, just as private school teachers don’t qualify either.

We are severely restricted from exploiting our abilities if we do not enjoy a good education. A college degree is very essential to enjoy a good and satisfying career. However, going to college or a private university is not cheap. You cannot avoid taking debts to finance your education. This is true for most students and that is why student loans are very popular.

It is natural for a student to worry only about studies during college. However, proper repayment of the loan begins to loom large after graduation. Reality bites and it bites hard. If you find your student loan to be beyond your repayment capacity, why not consider a student loan consolidation to restructure your finances and organize your numerous loans. Read ahead for some tips in this regard.

Step 1 – Research is a must

Study lenders as hard as you studied for your exams. Do you research well and always keep in mind that you are the only person who is concerned with your interests. Lenders focus on profits first and nothing else. College must have taught you the importance of homework. Make sure you deal only with reputed institutions. Almost all reputed lenders offer flexibility as far as applying for the loan is concerned. Most of them accept online applications and also allow you to manage your account over the web. Loan counselors are available online to help you understand the transaction better.

Step 2 – Separate Federal and Private

There is a lot of difference between a federal loan and a private loan. Federal loan offers additional benefits which private loans never offer. If you combine your federal loans and private loans into one big loan, you risk losing the federal loan benefits. For example, your repayment towards the federal loan qualifies you for tax deductions. If you combine the two loans, you will lose this benefit as this option is not available with private loans.

Step 3 – Opt for an affordable payment schedule

Once you decide to combine your loans, you will have to pay interest at a much lower rate. Further, you will get more time to repay your loan. On the whole, you should use these benefits to make regular repayments with minimum stress on your finances. If you can afford it, try paying more than your minimum monthly repayments. When times are good, it makes sense to repay loans quickly so that they are not around to trouble you when your finances take a beating. Make it a point to pay at least 33% extra to repay your loan a lot faster. Do this only if you can afford it.

If you pay more than necessary, your loan will quickly come down at a much faster rate. Your wise decision to go in for student loan consolidation will definitely improve your finances. However, do keep in mind that blindly choosing just any lender will only cause more harm than good.

Want to know more tips about how to consolidate student loans?

Visit: http://www.studentloan-tips.com

Consolidated Student Loans FAQ:

Question: Should I move my consolidated student loans from the fed government Direct Loan Prog to one run by privates?

Answer: If the payments end up being lower and if you can consolidate them with a lower interest rate.

Question: Can I re-consolidate my student loans if I have already consolidated them at 8%?
My current loans are at 8% which in 1997 was the lowest rate.

Answer: No, the government gives you one chance to consolidate your student loans.

Question: How to consolidate my student loans?
What is currently the best way to consolidate my student loans? I’ve graduated and my loans are now in repayment. I’ve contacted my lender and they told me they don’t consolidate student loans anymore so I have to look elsewhere. Which service should I choose, and why?

Answer: Don’t consolidate…. the banks don’t provide this service out of the goodness of their hearts, they offered it because it made them get more of your money.

Instead of a 10 year payment plan, you’ll be put on a 25 or 30 year plan… meaning you’ll be paying off that loan (and the hefty interest on that loan) until you are retired and pay much more than you you would have if you had not consolidated.

Question: I have consolidated my student loans but forgot to consolidate another loan, is it too late to add?

Answer: You have 180 days after you have consolidated your Federal Student Loans in which you can roll in any additional loans that may have been left out or you had trouble including in your original consolidation.

Simply contact your Servicer of your consolidation loan by phone and inform them that you have an additional loan that you would like to have included in your consolidation with them.

Question: Is anyone consolidating student loans now?
I just got my first bill from my 3 student loan lenders, and my monthly payments equal about $800 a month. I called each company to see if I could consolidate but there is a freeze on consolidation. Even Sallie Mae won’t consolidate the 6 loans I have with their company alone. Do you have ANY suggestions on what I could do to prevent defaulting on my loans?

Answer: Pay them, every month, even before you pay your rent. Consolidation doesn’t help you anyway, and is a rip off. Instead of taking ten years to pay off our loans you’ll be paying on them for 30.

Question: I want to consolidate my student loans. How do I go about that?
I have student loans from a few different lenders. I know this sounds stupid but I’m not exactly sure how much I have out! First, how do I find that out and second, who consolidates student loans these days? It seems a little hard to find someone willing to do it.

Answer: The first thing you’ll need to do is find all of your statements and look them over. When you have found as many of the statements as you can, you can call the customer service number on your statements for more information, particularly about your loan balances. You should also have copies of the “Promissory Notes” that you signed every time you agreed to a new loan. Each promissory note will tell you how much the loan is for, and they’ll also tell you how much you will eventually have to pay back on each loan.

Consolidation loans are promoted with the “pitch” that they make your life easy by allowing you to take a bunch of loans from different lenders and gather them all together into a single loan with just one lender and one payment. They are also “sold” with the suggestion that consolidation can save you a lot of money by lowering your monthly payment. Whether a consolidation loan is right for you depends on a lot of factors that the consolidation lenders don’t always tell you about in their ads and emails. I would REALLY recommend that you discuss this with a knowledgeable financial advisor.

Question: Unable to pay back a consolidated student loan?
I owe over a $150,000 on a consolidated student loan and have a hardship deferment. I barely make ends meet and will never be in a position to repay the loan. What can I do?

Answer: Here’s one possibility. If you can, teach at a Title I public high school. These are public schools where most students are economically disadvantaged and usually inner-city. I teach at one that is actually my old high school from long ago. And it is actually not inner-city or all that poor. It is especially not dangerous. Here the point. Many young people teach there because under certain guidelines of the No Child Left Behind Act and other federal programs, loan forgiveness is given.

I did a two year stint in the Army just to get the GI Bill and state education benefits. It let me attend school without borrowing any money. So, I’m really not an expert on loan forgiveness, but some folks I work with attended some pretty pricey universities on loans, and are spending about five years earning a fairly decent wage with benefits while having a substantial portion of money forgiven.

Question: If I am unhappy with my lender after I have consolidated my student loans, can I choose another company?
My lender double drafted a student loan payment in October and left me with an overdraft fee and now a closed bank account. I have been trying for months to get the lender to refund the unauthorized autodraft and the overdraft fee. The lender admits fault and repeatedly gives me a timeline for resolution, but my faxes keep getting passed off and/or lost–leaving me explaining the confusing situation to a new rep and a new manager each time I call in. Even if this gets resolved, I no longer wish to do business with this lender.

Answer: You may want to consider filing a complaint with the Better Business Bureau. You would have to explain the details in detail (literally), but you would get your problem resolved promptly. If you have the proof (receipts, invoices, etc.) to show that the bank completed a double transaction, they will request that for resolution purposes. If the bank is doing this to you, it’s highly likely that there are other customers that have experienced similar frustrations. Sure, there are periods of time when companies get busy and you may not get the immediate answer that you want, but reasonably, something should have happened within two weeks or so.

Student loan deferment can be a great relief for students who are going through hard times and cannot make payments on their deferred loans. These situations are quite unexpected so it is always better to opt for student loans that allow this option at a later stage.

Most of the federal student loans such as Stafford loans and Perkins loan allow deferment options. There are basically five types of student loan deferments. These categories apply to federal loans, supplementary loans and even consolidated student loans.

· Education Deferment: This type of student loan deferment depends on the student’s enrollment status. A student is required be enrolled in a college full time or at least half-time to avail a deferred student loan, but due to some reason, if the student ceases to be enrolled half-time the payments on the loans can be deferred.

In such a situation, the school needs to send an In-school deferment form to the lender, confirming the enrollment of the student, either full-time or half-time. The student can defer the payment only if they have an outstanding Federal Stafford, Supplementary, PLUS or consolidated student loan.

· Economic deferment: This type of deferment applies if the student is facing economic hardships or is unemployed. To apply for student loan deferment under the economic deferment category, the student needs to provide a statement of their annual earnings. In that, they need to show that their income falls below the wage guidelines set by the Bureau of labor Statistics.

· Disability/Rehabilitation Deferment: This deferment is applicable for students who are recovering from an injury or illness, therefore are not in a position to work, or if they are receiving rehabilitation training (for drug/alcohol abuse or mental health training) from an approved program. Or if they are supporting a dependent or a spouse that is disabled.

In this type of deferment, the student should have developed the disability, injury or illness after obtaining the student loan. In case of injury, the student is unable to attend work or school for more than 60 days.

· Family Leave or Parental Leave Deferment: This type of deferment is available to both present and former students. The student must be pregnant, caring for a new baby or a newly adopted child and cannot attend work or school because of these situations. This deferment can be applied for a maximum period of six months for each occurrence. Currently, there is no limit to the number of occurrences.

· Public Service Deferment: If the student is on public service duties such as serving in armed forces, public health services, National Oceanic & Atmospheric Administration (NOAA), volunteer under the Peace Corps Act or in an ACTION program, or serving as a volunteer for a tax exempt organization which is equivalent to Peace Corps Act or in an ACTION program, then the student qualifies for Public Service Deferment.

For all the above types of student loan deferment, a student needs to fill up the appropriate forms which are available with the lender. It is important to contact the lender for deferment before you default on your payments.

To learn more crucial information about student loan deferment visit the following website: http://www.deferred-student-loans.com

Student Loan Deferment FAQ:

Question: I am unemployed and receiving unemployment benefits, will I be able to get a student loan deferment?
I am sending in the form anyways but what are the chances they will decline my deferment as my unemployment isn’t nearly what I was making and I will not be able to make my student loan payments on top of all the other bills I have?

Answer: You’ll be fine. All you have to do is fill out an economic hardship form and they will defer payments. I suggest you start looking for work and put as much as you can towards your student loans/interest. You still will be in deferment status, just submit what you can on your student loans.

Question: If I have student loans on deferment and the loan is accruing interest can I file the interest amount as a student loan interest deduction on my tax form, even if the loan is on deferment?

Answer: No. You can only deduct items that you have PAID for. Since you have not yet paid the interest, it is not deductible. Don’t worry. It will be deductable in future years when you actually pay it.

Question: Question about student loan deferment?
I recently began attending graduate school part time. Today I got a letter from AES (the company through which I consolidated my student loans) that said that my loans are now in deferment! I honestly didn’t even think about defering my loans, but I’m not unhappy about it. My question is… can I make payments sporadically while in deferment? And what effect will this have on my interest rate? It is really low right now and I am one payment away from having a rate reduction. Any information would be great!

Answer: A deferment is a good thing (if you are a lender) because they get to add more money to your principal (how much you owe) and it gives you a longer time to pay on them… more time for the interest to capitalize (be added to the principal and then essentially you pay interest on the interest).
Deferment is good for the lender only. If it honestly never occurred to you to defer, then you need to get them OUT of deferment and pay on them. save the deferment eligibility (you only have a limited amount of time to defer over the life of the loans) for a real emergency like if you suddenly become sick and have to quit working, for example.

Making payments while your loan is in deferment won’t change or reduce your interest rate. Make your regular payment and don’t let them JIP you out of that rate reduction!!!

Question: I’m trying to increase my credit score, should I keep my student loan in deferment?
I have a poor credit score from when I was younger and very stupid with my credit cards, I’m in the process of rebuilding it by settling the old accounts, and using new credit cards a lot better. I have a student loan for about $6000 that is currently defered because I’m back in school. Is this helping or hurting my credit? Is it better to start paying it or leave it alone?

Answer: Well if you are in school and its in deferment it will not negatively affect your credit at all. Just remember that interest is accumulating for future payments but you will be OK. This will not affect your credit.

Question: Can student loan interest be used as a tax deduction if the loans are in deferment/forbearance?

Answer: No, you can only deduct the interest when you actually pay it, not when it accrues.

Question: Unsubsidized Student Loan Deferment?
I’ve just started graduate school and I have the option of deferring my undergraduate student loans. I’m not sure I can afford the monthly payments, but I’d still like to periodically put some money down on the loan.

So my question is, can I make payments on the principal of the loan, and not just the interest, while it is in deferment?

Answer: Yes, you may as long as if you are paying a little over the interest owed at the time of payment.

Question: How do I know if I qualify for student loan deferment?

Answer: Just call them & talk to them about it. I got out of school for a semester, and they wanted me to start paying off my loan. i called them & explained how broke I was, and that I am starting back school soon, so I got a 3 month deferment.

Question: Will my previous student loan go back into deferment?
I am paying on a federal stafford loan from a number of years ago. I’m in the process of setting up a new student loan through a different lender. Will my previous loan go back into deferment since I am a full time student, or will I still continue to pay on that stafford?

Answer: No. Once a student loan goes into payment, it does not get deferred again. However, you can renegotiate the terms of repayment any number of times (change the repayment period), so long as you continue paying the loan as agreed.

When you consolidate debt you can benefit from lots of benefits that you cannot if you just paid them off by yourself. If you are a student then you might want to look into consolidating your debts if you find it difficult to keep up with multiple payments, you would benefit from the mental ease of one monthly payment etc.

Almost every single student graduates with debt nowadays. I know because I was until recently a student myself and I want to tell you about the benefits of consolidating your student loan. Here are some of the best ones I can think of.

Fixed Interest – When you have lots of little debts, it is likely that some of them will have fixed interest, especially if you took out a credit card or two as a student. Then can vary massively on things that are out of your control. It times when the economy is how it is now, it is essential to be sure what is happening with your finances. You do not want to find that your bills jump suddenly and unexpectedly one month. Fixed interest means that from the first term payment to the last, you are always going to be paying the same amount no matter what, it is in your control.

Improve Credit Score – When you make regular repayments of a debt consolidation loan, you will be able to get credit easier from banks in the future because you will have proved yourself to the credit associations. This is especially useful if you have missed a lot of payments in the past because you will go from negative to positive in the duration of your set of payments.

To learn how to get a job with the Government and get the great feeling of freedom that comes with paying off your student loan, Click here for Debt Consolidation For Student Loans

Student Loans FAQ:

Question: What can I do to increase my score as a student who needs student loans?
My credit score is dropping from student loans! I’ve still got a lot more college to go and I’d like to continue after I get my bachelors. What can I do to increase (or maintain) my score as a student who needs student loans?

Answer: Getting more credit cards won’t help your credit score – developing a good credit history will. But that takes time. If you can get a credit card with a high limit but no annual fee, that would be a good way to tip your credit/debt balance in a better direction. But it’s a small help, because you’re not likely to qualify for a high credit limit relative to your current loan debt. Only get a card if you know you won’t use it, or will pay it off in full every month without skimping on your loan payments.

Focus on making your loan payments in full and on time. Try to pay the loans off early, instead of just paying the minimum.

Question: What is the best company to consolidate my student loans through?
I am finishing up my bachelors degree and will then pursue my MBA. But I am figuring I will have 30,000 in student loans total after I finish up my bachelors. What Id like to know is what company is the best to consolidate through and how much money can I save? Also, If I have the money I can pay the loans off even before the 20 years correct? I mean I could pay them off asap right?

Answer: I’m in the same boat and I actually paid a 100 a month while still in school, during my BA and it ended up being only 10,000 after I graduated, then I went into deferment again while I am finishing up my MBA but again I paid every month, as much as i could afford, and it doesn’t go towards the interest, just the principal, I consolidated through Wachovia and it seems fine, just have to make sure I monitor my interest rate. There is no early payment fee on most federal financial aid, but watch out for private companies, sometimes they tax you hard if you prepay or finish your repayment early.

Question: What is a good company to consolidate private student loans with?
I would like to consolidate my private student loans but don’t want to be subject to the pitfalls of those attractive offers like “Consolidate now and get a check for $1000.00.” I read the fine print of all the mail offers I receive but I don’t trust any of them enough to persue them. I have about 40k to consolidate and will be returning to school in January to add a few more thousand.

Answer: Student Aid Lending has been really really awesome to work with in the past.

Question: Can I get student loans to help live on while attending college if i get pell grants?
I am 28, a single mother of 2 and I am looking to finally start attending college this year. I know that I qualify for pell grants and such to pay for tuition but does anyone know if you can receive student loans on top of that to help with living expenses while attending classes

Answer: Yes, you will also be offered either work-study or Stafford / Perkins loans in addition to your Pell Grant. Any funds offered to you as work-study can be transferred to loans … or vice-versa.

Question: How do I pay defaulted student loans to save my credit?
I am a single mother of three, so even a good income has to be very well budgeted. I have roughly $100,000 in defaulted student loans, so most consolidation and other programs are out of the question for me. I have been asked to pay more than I can afford monthly for these loans. What can I do to both get these paid and save my credit?

Answer: Unfortunately if you have a Federal Student Loan that is in “Default” status, you will not be able to use your Deferment or Forbearance options until your loan is brought back into good standing. These are programs that may qualify you to hold on your payments for up to three years. I would contact the original Lender of the loan and speak with them first to get a payment plan put into action immediately. Explain your situation to them and they should be able to get some kind of payment plan hammered out that will allow you to get your Student Loan back in good standing.

Your account can be brought back into good standing through a number of ways, one of which is by making six agreed upon monthly payments over a six month period.

Loan Rehabilitation Programs are also available to help you get your Defaulted Student Loans back in good standing, giving you the ability to take out more funds if you decide to go back to school.

Question: How does consolidated student loans affect your credit score if there is no payment due?
What affect do student loans have on a credit score in any case? Whether they are new and not yet due or have been defferred for a while? Does having student loans go against your credit even if they are not due yet?

Answer: It shouldn’t effect it at all either way. Until you start making payments you really have no credit history on the loans.

Question: Do lenders view student loans just as they do other debt such as credit cards?

Answer: Since student loans will not go away like a CC debt can, then I would think they carry more of a liability to getting further credit that the CC’s.

Question: How will my student loans affect my tax returns?
I am going back to school and took out some student loans to get me through it. I am wondering if these student loans will affect tax returns even though I won’t be making any payments for a couple more years till I graduate.

Answer: The interest you pay is tax deductible. If you pay no interest in a year, no deduction. They will send you a statement of how much interest you paid. Otherwise, no effect.

Federal programs

There are two federal student loan consolidation programs in the united states that allow a student to consolidate all student loans into one single loan:

1. The federal family education loan program
2. Federal direct student loan program

the above two programs were established to address the following loan types:

* Stafford loans
* Plus loans
* Perkins loans

The offer of fixed interest rate for the whole loan life cycle is one key characteristic of consolidation loans by federal government targeting at students.

A brief history of the federal program

The federal student loan consolidation program was created in 1986 to allow graduates with more than one federal loan to consolidate them all into one single loan package. Such consolidated loans had a variable interest rate from 1986 to 1998 but in 1998, the us congress acted to convert the variable rate to one of a fixed rate weighted average. The latter came into force on February 1, 1999. Before this time, a consolidated student loan from federal government used to have a variable rate. That rate was determined by either the university or the lender, whoever is the loan originator.

In 2005, the government accountability office (GAO) stepped in, took under consideration the savings of consolidating all of the consolidation loans. On the basis of future variations in interest rates, loan volume, percent of defaults and cost estimates from the department of education, GAO concluded that this would cost an additional $46 million. GAO also concluded that this cost would be offset by a savings of $3,100 million which was in part by avoiding a $2,500 million cost in subsidies.

Interest implications

When compared with student loans offered by federal government, the term of payment for federal consolidation loans is longer. It can range anything from ten to thirty years. Even though monthly repayments are lower, the overall cost of the term of the loan is actually higher than with other federal student loans.

The fixed interest rate is derived from using a weighted average of the consolidated loan interest rates. This is done by assigning relative weights according to the amounts borrowed and then rounded up to the nearest 0.125%, but capped at 8.25% interest. Post-graduation grace periods and special forgiveness circumstances are two features of the original loans that have not been carried over to the consolidation loans.

Don’t rush to decide

if you have existing loans that cost you considerable money, despair not. Consolidating your loans may be the way to go. However, it is important to appreciate the fact that federal student loan consolidation is not always suitable for every borrower with federal student loan payment.

Ray Young trains elementary school trainee teachers part-time at a teacher training college, and is passionate about helping people becoming financially more prudent and independent through writing and publishing online. He writes on topics like Health Care Insurance. Making it to college or university will be one of the best things that you can ever do to get to the places you want in life. Never let money come in the way to stop you from going to college when you can’t pay for the education yourself. To get all the insights and help you need on How To Financially Support Yourself Through College, check out Student Loan Consolidation.

Student Loans Consolidation Questions & Answers

Question: Are there any banks or agencies still doing student loan consolidation?
I’m a recent college graduate, and it seems that all of the banks which used to offer consolidation services are no longer. Do you know of any banks or loan agencies that are still consolidating?

Answer: All of the banks should be doing that because student loans are protected from bankruptcy. You just need to find a bank with the capital to purchase your loans. Look at midwestern founded banks and some that really specialize in student loans like western union.

Question: What to do about student loan consolidation?
Hi all. I graduated college last May and will begin repayment on my loans starting in November. I have 7 federal student loans, totaling about $62,000 and 1 private student loan totaling about $8,000. Many places are not offering federal student loan consolidation any more, and I only have one private student loan so it doesn’t make sense to take out a private consolidation loan. As of right now, my payments are going to be about $800 monthly starting in November. I can’t afford that! What can I do?

Answer: Because of the student loan reform act many lenders pulled out of the consolidation field. The ones that remain do so on a limited basis. Generally once they reach their monthly quota of loans they stop taking any others. This means you’ll likely need to check sites like http://www.studentloanconsultants.com for their list of lenders every week to see who is or is not offering consolidation loans at that time.

Unfortunately there is no easy way of doing it at this point, but just be patient and you’ll find a lender to do the consolidation.

Question: What is the best student loan consolidation company?
Recently, I consolidated my student loans (undergrad, grad school loans). After I received the final break down, it appears that I will be paying double over the 25 year pay back period even with a 6% interest rate. This is ludicrous and certainly NOT what the agreement stated. I need to find a better company with better rates and soon.

Any suggestions – help!!! This company is really not the best and I plan to change soon. Send links and your advice on how they have helped you!

Answer: When you consolidate your loans and extend the repayment period to 25 yrs (instead of the standard 10 yrs on federal loans) this increases the total amount of interest you pay over the life of the loan. Credit cards and other loans work the same way. Remember, the monthly payment is just the *minimum* you need to pay. Paying more than that each month will reduce the total interest you pay on the loan.

You federal loans can’t be “reconsolidated” unless you have a new (unconsolidated) loan to add to the amount.

Sallie Mae is the largest lender and consolidator of student loans and they offer a lot of great info on their site, including an FAQ and a calculator so you can see what your payments will be.
student loan consolidation information:

http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/student_loan_consolidation.htm

reconsolidating student loans: http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/reconsolidate.htm

Question: How do I go about choosing which student loan consolidation program to go through and why consolidate?
Current student trying to get a head start on paying off my loans which companies are the most legit and what should i look for? Also why should/shouldn’t one consolidate?

Answer: I’m not sure you can consolidate your loans if you are still in school. Are these government loans or private loans? If government, are any of them subsidized loans? If they are, this means they are interest free until you graduate and consolidating might affect that.

Consolidation is a way of locking in a lower interest rate for the life of the loan, and many companies offer bonuses like cash back for 1.25% of the loan after 24-months of payments. Interest rates on loans vary as the economy varies. By consolidating, you lock in the current rate forever. With current rates being close to 8%, I would not recommend consolidating at this time. When rates FINALLY go back down to 6 or 7%, you will be stuck at 8%. Unless you hear that rates are suddenly jumping to 12% in 3-months, hold off.

Question: Whats the best way to go about student loan consolidation?
I have a bunch of student loans and i get a lot of junk mail about consolidating. Who is the best to use for consolidating? What type of payments and interest rates can i expect. I have about 8 different student loans out there, from 4 years of school. Some are private, some are federal.

Answer: Go with a reputable company which has had good reviews. Ask your friends or other grads/students on who they are working with and ask for feedback.

8 loans!? wow… Its probably time for you to consolidate them into one big payment instead of paying 8 loans monthly isn’t it?

Read more on the link below… also don’t forget to go to your student union or student services and ask for some advice.

Question: Can you apply for a student loan after debt consolidation?
if you already have one loan, what if it’s differed due to disability? How does this work?
Can you apply for a student loan after debt consolidation?
if you already have one loan, what if it’s differed due to disability? How does this work?
At the time the first loan was taken out (it was for around 4,000 and it was to a school that was a scam, but they got away with itbecause they knew the ins and outs of pulling off their scam very well. . so I’m asking about applying for another loan / consolidation, not discussing the previous one.

Answer: They will see that you already have a loan when you have to give them your SS #. You will have to tell them about the previous one. Sorry you got scammed.

Question: Anyone know of a best place for private student loan consolidation?
Hey there, I am looking to consolidate my private student loans, I have a total of about $30k. Anyone know of a place that offers the best interest rate?

Thanks for any help.

Answer: Ditto what Bob K said. It’s what I plan to do with my private loans – but here’s more information for you:

The Sallie Mae private loan consolidation program started at the end of April. They do a credit check, and depending on your FICO score you can get a rate that starts at prime and then moves up from there if your score is less than perfect. *But*, you can get a cosigner with excellent credit and get a rate closer to prime, and after two years of repayment you can remove the cosigner completely from the loan. The best part is that repayment can be for up to a 30 year term (maybe not for smaller balances, but ask anyway).

The White Collar Ruckus

http://whitecollarruckus.libsyn.com

Question: Does anyone know of a company offering student loan consolidation loans?
All the companies I have checked out are not offering consolidation loans because of the credit market. There is no way I can make payments with out consolidation. Someone please help!

Answer:
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.