Consolidating Student Loans In Default

5 min read

How does Consolidation work?

A loan consolidation is the process of combining several loans into one monthly payment. When consolidated, you generally get an interest rate reduction, lower monthly payments, and sometimes even a slightly larger loan amount depending on the lender.

What should I look out for before making a decision?

Before consolidating your student loans, make sure you know how much money you’ll save on your monthly payments. You may find yourself paying less than expected if your interest rates are high or if you have credit card debt. Be aware that some lenders charge fees for their services, so be sure to check them carefully. Many private companies offer low-cost options, while federal agencies do not. Interest rates vary widely based on credit history and personal circumstances, so you need to shop around until you find the best deal. Make sure that you understand what terms and conditions you’re agreeing to.

Should I consolidate my student loan first?

No matter what type of loan you have, be sure to start looking at consolidation options well ahead of time. A good rule of thumb is to keep your current interest rate for six months after graduation, then switch over to zero percent financing (or another low interest rate) and combine your loans there. If your credit is poor, you may want to wait until just before graduation to do your consolidations. This way, you won’t have any late payments while you’re studying or working.

Is the government interested in helping me consolidate?

The Department of Education offers many different types of assistance programs that can help you pay down your student loans. These include income-based repayment plans, Public Service Loan Forgiveness and Pay As You Earn, which eliminate your remaining balance once you’ve paid off 10 years of qualifying monthly payments. There’s also the Federal Direct Stafford Loan Refinancing Program, which lets borrowers refinance existing federally guaranteed loans with lower interest rates. To qualify, your total outstanding loan balances cannot exceed $57,500.00, you must still owe money on those loans, and the loan cannot be older than seven years. These and many other programs are outlined in the Federal Student Aid Handbook.

Why would I consider refinancing?

Refinancing a loan with a lower rate could potentially reduce your monthly payment significantly, saving you thousands of dollars in the long run. Depending on your situation, refinancing could be a wise move. You might save money each month with lower interest rates, or you could use extra funds to make additional payments toward your loan.

Do refinanced loans carry certain risks?

If you refinance a loan, you should know that you may lose access to some public benefits. For example, you may no longer be eligible to receive food stamps or Medicaid, depending on where you live. Lenders may also require documentation showing that you own a home, or that you have sufficient reserves to cover the cost of living. Before refinancing, be sure to ask about these details and evaluate them carefully.

Where can I get information about refinancing?

To learn about refinancing opportunities, you can visit the National Consumer Law Center website. Or, contact your bank or credit union directly for more information.

Consolidating Student Loans In Default

studentloans studentloanborrower

Snapchat @jessikatecc

Business Email: jessica@jessikane.com

Periscope: JessikaTate

Don’t forget to sub!! 🙂

Consolidating Student Loans In Default

Author: “Bill Gates – Forbes Magazine”

Date: 04/10/2015

Content:

This week we take a look at consolidation in student loans. Bill Gates writes about how student debt is affecting young people today. He points out that students who take loan consolidation programs have lower default rates than those who don’t. He says that these programs enable you to pay off your debts over 10 years instead of 30 or 40 years.

The article goes on to talk about what happens if you do not consolidate your loans. You could end up paying much higher interest rates for longer period of time. We will discuss some ways to avoid this situation.

Consolidating Student Loans In Default

The U.S. Department of Education issued two final regulations under the federal student loan program Friday, and they’re designed to make it easier for borrowers to avoid defaulting on their loans.

In a statement, Education Secretary Betsy DeVos said the department would “provide greater protections students who find themselves in financial distress after accumulating substantial debt while pursuing postsecondary education.”

Under the rules, eligible borrowers may have their payments extended by up to three years if they’re unable to pay back their loans, provided they meet certain criteria. They must show efforts to repay their debts — including working and applying for public assistance — and maintain good credit scores. To qualify for longer repayment terms, borrowers must also agree not to incur additional debt or file bankruptcy.

“Students should not face unnecessary barriers to completing their educations,” DeVos said. “It is unacceptable that students today are saddled with tens of thousands of dollars of debt yet still struggle to afford basic necessities. We owe them better.”

The rules take effect immediately, however, only affect those who have been struggling to pay back their loans and have had their payment options reduced or eliminated due to their inability to do so. Borrowers currently enrolled in income-driven plans or consolidated loans will continue to accrue interest at current rates.

The regulations were first announced in November, when DeVos called for changes to the student loan programs. At the time, she said borrowers shouldn’t have to bear the burden of paying back loans that enabled them to earn a degree that helped advance their career goals.

She also noted that many borrowers have trouble affording to live, let alone pay back their loans, even though their monthly payments have decreased.

“Too often, these borrowers are forced to choose between making ends meet and repaying their student loans,” DeVos said then. “Yet doing both is critical to building long-term wealth and stability for Americans in all walks of life.”

A recent report from the Consumer Financial Protection Bureau (CFPB) showed that nearly half of borrowers who sought help from the state agencies couldn’t pay back their loans, largely due to high levels of poverty among borrowers and low incomes among families. About 1 million borrowers with private loans — about 30% of all private loan holders — were delinquent or facing some level of default, according to the report.

The CFPB study was released just days before the government shutdown that began Oct. 1. The federal agency closed its doors soon after.

Since then, the Trump administration and Congress have failed to reach a compromise on funding for the federal government. As a result, the government remains partially shut down, leaving hundreds of thousands of employees without paychecks.

Consolidating Student Loans In Default

com/user/CCTVNEWSbeijing

Description: July 15th 2014 marks the third anniversary of China’s economic reforms. In the past three years, the nation’s economy has grown tremendously, despite some setbacks. At present, the debt-ridden property sector shows an apparent slump while the automobile industry continues to decline.

Currency manipulation, money laundering, industry crackdown: Many industries have been affected­­­ in different ways, including banking, real estate, finance and the legal field. But what does the future hold for the Chinese economy? Will the economy be stable, or even further able to boost growth?

What started out as “microblogging” social networking site morphed into an internet sensation, changed Chinese politics and turned regular people into instant celebrities. We look at how so many ordinary users came to represent a massive shift in power and left their mark on history.

How To Consolidate Your Debt | Credit Card Management 101…

This video provides examples of consolidation of student loans. I answer questions about federal student loan forgiveness, private student loan forgiveness, and consolidation.

Is he still making payments on your student loans? If that is the case, then chances are he is not going to qualify for forgiveness unless he is already working for the company.

►HEY, we’ve got more valuable information here: ►CLICK HERE LOANS FOR STUDENTS◄

►Cloud of related items ▼

►Loans For Students◄

 

bloque1x