Student Loan Consolidation
A guy from one of my PoliSci classes runs an interesting site on student loan consolidation. It explains all the ins-and-outs of consolidating your student loans. For example:
Q. So, yeah, why would I want to do that?A. Good question, glad you asked. There are several reasons why you might want to enter the wacky world of college loan consolidation. Here’s some:
Reason #1: Loan consolidation locks in your interest rate. Your original student loans are variable rate, which means that their interest rate can go up or down. Consolidated loans are fixed rate, which means that your interest rate will end right where it started. Since interest rates are very low at the moment (as all the loan consolidation companies will tell you), right now would be a good time to consolidate.
Reason #2: Loan consolidation companies are desperate money grubbers. In other words, they’ll give you incentives to get you to consolidate with them. For example, most college loan consolidation companies will give you interest discounts for signing up for some auto-pay system (expect about a .25% interest rate deduction for that). Two or three years of on time payments will lower your rate even further (expect a full 1% interest rate deduction for that).
It goes on to explain how to make the system work for you. Interesting stuff if you’ve got student loans.
7 Responses to “Student Loan Consolidation”
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I am one of those lucky ones who have not taken a loan as yet …however I plan to apply for a Student loan very soon.
One of my seniors had consolidated with this one company last year…and he says that it was easy and quick…he got a pckage..he signed it..the DHL guys picked it up and thats it…he is enjoying the low payments and the cho sweet sounding interest rates….you could chk out these guys at 1800-446-5418…..dunno if the no. still works…but there is no harm in trying…
Cheers
Is consolidation is avilable to Non US citizens?
Is consolidation is avilable to Non US citizens?
Iam from Ahmedabad, India
By considering a student loan consolidation and remaining on your 10 years payment plan, it is possible that you can lock your interest at today’s current loan rates and save some bucks over the long haul. Aside from that, all of those loans that may have come from different lending companies or banks can be a burden to deal with. So, if you consolidate, it means that you only deal with one single company and one payment rather than several. Other than that, you have the great chance to receive added bonuses like payment and interest rate reductions in case you pay your debts on time over a period of months.
Since rates have gone up since last year a big selling point to consolidate your student loans is to get a lower monthly payment plan, improve your credit score, and renew your forbearance and deferment options.
Nowadays, people feel the interest rate is to high but I always make sure to stress that its more than just locking in your interest rate!
Nelnet Agrees to Pay $2 Million To Settle With New York Officials
July 31, 2007 6:18 p.m.
OMAHA, Neb. — Student loan company Nelnet Inc. has agreed to pay $2 million and will quit offering two services as part of a settlement with the New York state attorney general’s office.
Officials at the Lincoln-based company disclosed the settlement Tuesday in a call with financial analysts. Nelnet agreed to abide by an industry code of conduct developed by New York Attorney General Andrew Cuomo.
Nelnet officials also predicted Tuesday that the student loan business will become less profitable once new rules Congress is considering are approved, which could hurt borrowers.
I have found that this page has helped me a lot in finding the information I needed. Hope this will do the same for you.
http://www.juiste.net/student-loan/