Student Loans Debt Consolidation

A debt consolidation loan is a type of personal loan where you combine all of your credit card payments and loans into one monthly payment. In doing so, you take advantage of the lower interest rates often offered by these types of lenders and save lots of money each month. However, you have to make sure that you choose a good debt consolidation lender because some companies will charge exorbitant fees and penalties if they do not get their full amount back right away.

Benefits Of Choosing A Good Debt Consolidation Lender

Debt consolidation loans offer numerous benefits:

Lower Payments If you consolidate credit card debts under one loan, you can lower your minimum payment amounts substantially, saving you hundreds of dollars each month. You may find yourself paying as little as $100 per month instead of having to pay several hundred dollars each time you make a credit card payment.

Reduce Interest Rates If you pay off your balance faster, you receive a lower rate of interest on your entire outstanding debt than if you were making separate payments. That means that the cost of borrowing decreases significantly.

Save Money By Paying Off Your Balance Over Time Instead of paying high interest on credit cards while still accruing interest at a higher rate on your student loans, you could avoid paying interest altogether by paying off those student loans first.

Avoid Bankruptcy If you cannot afford to pay your bills consistently, then you should consider bankruptcy. But, if you can manage your finances to stay out of bankruptcy court, then you should definitely consider consolidating your debts.

Choosing A Good Debt Consolidator

When choosing a debt consolidator, look for lenders who have no hidden charges or fees when you apply for a loan. Look for a company that will work well with your existing creditors, which will help you to reduce unnecessary confusion. Make sure that you research the options available before deciding on a particular lender. Most reputable lenders online will allow you to compare different lenders side-by-side to ensure that you’re getting the best deal possible.

Student Loans Debt Consolidation

Income: $0 / Month

Net Worth: -$0/Month

Assets: $100,000

Liabilities: $300,000

Debt Payments/month: $500

Total Monthly Payment: $400

Payment Date: 1 Year 8 Months

What would happen if you could pay off your student loans debt in just less than a year? As you’ve seen I just calculated my exact scenario using data pulled from www.bankrate.com and www.myfico.com. I’m going to show you how I was able to do it and what I did to make it work.

Here’s How It Works…

As you’ve seen in my personal situation, I had over $300K in student loan debt. My goal was to get rid of those high-interest rates and reduce my monthly payments to under $400. I wanted to use a consolidation program to consolidate my federal Stafford Loan debts into one low payment plan. I chose to go with Great Lakes Credit Union because they have great customer service (they’re the only credit union I know of that puts customers first), and their loan consolidations were among the best programs I reviewed online.

I started out by getting preapproved for a new loan at a lower interest rate (the lowest you can get) and applied for the loan. I then completed a few weeks of payments every month to demonstrate that I could handle the new lower monthly payment. Once I proved myself to them I got the lower interest rate, and then I paid off the rest of my loans. Since I didn’t even need to put any money down to start the process, I had no risk whatsoever! After applying for the new loan, paying off my old loans, and starting the new loan, all in less than 2 years, I was completely debt free, all thanks to the power of student loan consolidation.

studentloans studentloandebtconsolidation debtfree

Student Loans Debt Consolidation

Here’s how we can save you thousands.

What do you want to know about student loans? Do you have questions about paying back student loans, consolidating them, refinancing them, discharging them, etc.? If so, then I’m here to help! Student loan debt can be confusing, especially if you’re trying to get out of debt and you don’t have much experience with money. So, I’ll break down everything you need to know to pay off your student loans fast and easily (and without getting scammed).

The first thing you should understand is that student loan debt consolidation isn’t free. You will likely end up paying fees for services you aren’t even using. But at least you won’t be paying interest again on that debt, right?! Here’s what they may charge you:

Upfront fee – A $500-$1000 service fee.

Loan processing fee – An additional 5% of the total amount of your loan.

Annual servicing fee – 1% per year.

So let’s say you owe $25,000 on your student loans and you consolidate them into a single 10-year repayment plan. Your annual payment would be around $250/month. That means you’d pay around $2900 over the course of the 10 years, plus the initial $500 service fee. All in all, you’d spend about $3613 over the course of the entire loan. Not bad, huh?

But now it gets worse…

If you decide not to use their services after signing up, you still have to pay the upfront fee. There is no partial refund either. So if you choose not to sign up, you’ll have already paid $500 + an additional $500 $1100. And since you’ve already paid $1100 towards the loan, your monthly payment stays the same. That’s right. The company doesn’t care if you ever use their service. They just want the upfront fee up front.

There are many companies out there that offer these types of services. Unfortunately, many of them are just scams. They take your money, disappear, and never return your calls. These companies aren’t doing anything illegal, but they should still be regulated as financial institutions. In fact, the FTC recently sued two student loan debt consolidation companies for deceptive practices.

Instead of choosing a company that charges you a lot of fees, try looking for one that offers a low cost that includes services you actually use. You may find that the service is quite affordable, so long as you stick to the terms of the contract.

Remember, though, once you start making payments on your consolidated debt, you cannot modify the terms of your original loan. Therefore, you shouldn’t expect any kind of concessions if you go with a company that is charging you high fees.

Also, make sure you read reviews before you sign up with a company. Most reputable companies allow customers to leave reviews online, so you can read what others think of the company. Read a few reviews, choose the ones that look like they weren’t forced to provide positive reviews, and sign up.

Now let’s talk about student loan refi’s. Refinance your student loan debt and lower your interest rate while saving time and money. Basically, if you refinance your student loan debt, you can change the terms of your loan to reduce the amount owed. This means you could potentially pay less than half of the interest you had previously been paying.

Student Loans Debt Consolidation

Student loans debt consolidation is a way to pay off your student loan debts faster. If have accumulated over $50,000 in student loan debts and want to get them out of the way, it might be best to consider student loans debt consolidation. In order to qualify for student loans debt consolidation, you need to make at least three monthly payments to a consolidation lender. You then use their money to pay off your existing student loan creditors. Once the balance is completely paid off, you owe nothing else back.

A major benefit of consolidating student loans is that you don’t have to deal with paying bills for the duration of your repayment period.

Another good thing about consolidation is that you won’t have any additional fees to worry about. Your lender may charge some sort of fee when you consolidate your loans, but they’re generally much lower than the interest rate on your student loans.

If you’re considering taking out private student loans, you’ll likely incur higher interest rates than if you took out federal student loans. However, the government offers many educational grants, including Pell Grants, Stafford Loans, PLUS Loans, Federal Work Study programs, and Direct Subsidized/Unsubsidized Loans.

Private lenders tend to offer less flexible terms than the government does. However, since these are unsecured loans, you could eventually default even if you do everything right. If so, the bank holding your loans could try to collect by garnishing wages, seizing assets, or repossessing property.

When looking into how to consolidate student loans, you should look carefully at what kind of payment plan they offer. Ideally, a loan provider would offer 10-year plans that start at a low monthly payment and increase over time. They should also allow you to choose between a fixed or variable rate. Fixed rates are constant throughout the term of the loan, while variable rates fluctuate based on market conditions.

It’s important to understand that the longer you take to repay your student loans, the worse off you’ll be. You’ll accrue significantly higher interest rates over the course of a 30 year period compared to a 15 year period. By the time you’ve repaid your loans, you’ll end up spending thousands more dollars than if you had consolidated them immediately upon graduating college.

It’s also smart to compare different lenders’ products before settling on one. Many online lenders offer free quotes using a tool called LoanMagic.com.

Be sure to ask questions about your proposed loan program before signing anything. Ask whether you’ll be able to negotiate the size of your payments; if you’ll be charged an origination fee; what types of fees you might incur if you go delinquent; and how long it takes to get approval.

Don’t forget to factor in the estimated cost of attending school. That’s especially true if you’re planning to attend medical school or law school. You’ll need to spend approximately $150,000 per year just to break even.

Most schools require students to maintain a minimum grade point average (GPA) in order to graduate. This means that even if you have excellent grades now, you still won’t be eligible to receive financial aid until after your freshman or sophomore year.

If you’re struggling with finding ways to reduce your student loan payments, consider switching to a direct lender. They provide personalized service and often have competitive interest rates.

Just like with credit cards, you can’t always control your credit score. Therefore, it’s important to keep track of your credit score and report changes promptly.

Before applying for student loans, check your credit score. You can find your credit score for free at Credit.com.

Student Loans Debt Consolidation

Are you looking to pay off your student loans? Would you like to have a fresh start? Student Loan debt consolidation may be the solution! Our partner loan experts specialize in helping students and parents get out of debt fast and afford higher education without breaking the bank. We will negotiate on your behalf with the lenders. If you have good credit they will work with you. In some cases we can close your account altogether. Get started today by filling out our free online application at www.studentloanheroes.com

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

►Cloud of related items ▼

►Loans For Students◄

 

bloque1x