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Alternatives to Federal and Private Student Loan Consolidation – federal student loans consolidation

August 17th, 2011

Alternatives to Federal and Private Student Loan Consolidation

Alternatives to Federal and Private Student Loan Consolidation

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Home Page > Finance > Debt Consolidation > Alternatives to Federal and Private Student Loan Consolidation

Alternatives to Federal and Private Student Loan Consolidation

Posted: Jun 26, 2010 |Comments: 0
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Do you owe a lot in student loans but recently graduated with a degree in law, medicine, or education?  If so, you could have all or part of your loans paid off by certain government programs.  Read on to learn more.

Consolidating your student loans, whether they are federal or private, makes a lot of sense. Instead of managing multiple loan payments you make just one consolidated payment each for your federal and/or private loans. Doing so frees up more of your money each month to pay other bills and, depending on the terms of your consolidated loans, you may have more time to pay them back. You may also pay less in interest.

While consolidation is a great idea, there are options that can work out even better. By taking advantage of certain government programs, you can get all or part of your debts paid off through community or private service in your profession. Did you know that if you are a doctor or nurse and commit your services for a certain period to help people in low income areas, then you can have up to ,000 of your student loan paid off through the National Health Services Corps? Talk about killing two birds with one stone. Not only do you get to help out the community but you also have a huge weight lifted off your shoulders. You also gain some invaluable experience which looks great on your resume. Similarly, if you are in the teaching profession, you can take advantage of certain benefits available through the Department of Education. If you agree to tutor low-income students in designated areas for a prescribed period, the government may forgive your federal student loans entirely. Lawyers also have the ability to have their debt reduced or eliminated by working pro bono (or at low wages) providing legal consultation services to the less fortunate for a certain amount of time.

Always bear in mind that paying off your student loan does not have to become a burden. If things get rough, there is help available. If you do all your research and exercise the options that we’ve described in this article, you have a great opportunity to help out the community and get your loans paid off sooner than later.

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For comprehensive information on consolidating federal and private student loans, visit our Student Loan Consolidation guide. Be sure to log on now to find out all you wanted to know about consolidating student loans including current rates, programs, tips, do’s and don’ts, and answers to frequently asked questions.

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For comprehensive information on consolidating federal and private student loans, visit our Student Loan Consolidation guide. Be sure to log on now to find out all you wanted to know about consolidating student loans including current rates, programs, tips, do’s and don’ts, and answers to frequently asked questions.

– federal student loans consolidation

Fast Track to Student Loan Consolidation Consolidation isnt a foreign word and its not too big of a word to understand. Consolidation is easy. It combines all of a students loans into one payment. Its that simple. Its easy as pie and will let you breathe easier too. Student loan consolidation…
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Considering Student Loan Consolidation Interest Rates – student private loan consolidation

August 13th, 2011

Considering Student Loan Consolidation Interest Rates

Considering Student Loan Consolidation Interest Rates

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Home Page > Finance > Insurance > Considering Student Loan Consolidation Interest Rates

Considering Student Loan Consolidation Interest Rates

Posted: Dec 15, 2009 |Comments: 0
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Almost eighty percent of students get some type of student loan to get through college. Most of these student loans average ten thousand dollars. Students who received their loans before the interest rates began to fall may be paying higher rates than are available now. For some people the student loan consolidation interest rates that are available today can significantly lower both the interest rate of a loan and the monthly payment for the loan.

Federal education loans and private education loans are considered two separate types loan when one is thinking about consolidation. The ways that these loans and interest rates are calculated when consolidating is very different. The government has a structured method for calculating student consolidation loans. Private lenders calculations can vary and are calculated differently.

When consolidating a student loan the government takes the interest average of all the loans and rounds up to the closest one-eighth percent. The interest rate will be between the highest and lowest interest that is currently paid to a cap of 8 1/4%.

For students who have a PLUS loan there can be an advantage to consolidating their loan. The maximum interest rate for a PLUS education loan is 8.5%. The maximum interest rate on a PLUS loan consolidating is 8.25%. A student paying the maximum interest rate for a PLUS loan can instantly save 1/4% by consolidating their loan.

Interest on a private education loan is calculated using the prime rate or London Interbank Offered Rate with an additional one to five percent origination fee. The origination fee is based on a person’s credit score. The origination fee normally is included in the loan and there is not an upfront fee required.

The total amount of the loan can also be increased when other costs must be added. Capitalization of deferred interest from the original loan may be included in the loan if the original loan had deferred interest. If there were any discounts offered with the original loan they normally must be paid back and will be included in the loan as well.

Consolidating student loans will extend the repayment period of the loan and lower one’s monthly payment. It will also allow an individual to make one payment to a single lender for their education loan. But, it is important to talk to a professional about the many student consolidation interest rates that are available when finding a private lender. In some cases a person’s interest rate will not be lowered enough by consolidation to make the extended payments of a loan worthwhile. By doing research and finding the best rates a person can significantly lower their payments and have one interest rate that will offset the higher rates that were being paid previously.

Looking for the lowest student loan consolidation rate? Undergraduate student loans may be the best option for you.

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