Student Loan Consolidation Hot Topics

Countless times a day borrowers will phone us at the Student Loan Network complaining that they have been bombarded with information from different lenders offering all sorts of benefits and opportunities if they consolidate with their company. Borrowers seek out the Student Loan Networks advice on how they can make the best financial decision.

The Student Loan Network always advises that when you are deciding on a lender to consolidate your student loans with to make sure you educate yourself on what is necessary to achieve and maintain borrower discounts and rebates that they are offering. If a lender is offering a 1% interest rate reduction after so many on time payments to have the company put the terms in writing for you. Find out and understand all terms, conditions, requirements of your loan consolidation. Not educating yourself on this can cost you thousands of dollars in lost or added payments.

Another way to make an informed decision on which lender to consolidate with is to test the customer service staff. Give the company a quick phone call and pay close attention on how the customer service staff assists you. Also, you can send a short email and see how long it takes for the company to respond to your online inquiry. By performing this research you may find that certain lenders have better customer service than others. Customer service is a major deciding factor when selecting a company to consolidate your loans with.

It is important to have all the information to help you make an informed decision. The loan market is filled with lenders that range from very good companies to those who are inexperienced with the student lending industry to those who are just downright unethical. Remember that you signature of the consolidation application obligates you to the terms of the consolidation loan and that lender. Be certain that you know what is being offered and what you must do to obtain and maintain and benefits and whom you will be dealing with.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

Hot off the wire…

As spring 2006 college graduates approach the end of their six month federal student loan grace period, borrowers will be faced with repaying their federal student loans at a time when student loan debt has never been greater. Student loan consolidation holds out the promise for recent graduates to lower their monthly payments up to 60% and reap additional interest rate savings - but only if they act quickly, before their grace periods end.

Federal student loan consolidation is a refinancing program that combines multiple federal student loans into a single loan, fixes the variable interest rate, and lowers the monthly payment. Graduates can consolidate their federal student loans at any time after graduation, but the first six months after graduation gives graduates an additional discount of 0.6% off their interest rate. Consolidation has grown significantly over the past 12 months due to July 1st interest rate changes and legislative changes written to permit borrowers to consolidate with any lender they choose.

Jonathan Rudy, director of loan consolidation services at http://www.StudentLoanConsolidator.com recommends that 2006 graduates file their consolidation application immediately. “All 2006 spring graduates who have not consolidated their loans yet need to submit an application right away. The 0.6% interest rate discount for consolidating during their grace period translates into huge savings throughout the term of repayment. In one recent example, a student was able to save an additional $49 per month, which oer the life of their loan translated into an additional $17,640 in savings.” [1]

Mr. Rudy also states that college graduates are faced with a staggering financial burden after graduation. “With post-grad living expenses including moving costs, rent and car payments, student loan consolidation makes great financial sense for anyone trying to build a manageable budget. Having multiple large student loan payments each month only adds to the growing pile of bills – consolidation can cut monthly student loan payments in half.”

Christopher Penn, host of the popular Financial Aid Podcast internet radio show, commented, “Federal student loan consolidation with StudentLoanConsolidator.com is the ideal tool for managing your student loan payments. You need a couple of years after graduation to get on your feet financially, and being able to cut your loan payments in half while you’re getting started can be a huge advantage. Once you’re on your feet, you can make additional or larger payments with no early repayment penalties.”

Mr. Rudy encourages all student loan borrowers, including parents with federal PLUS loans, to file a free application for consolidation right away. Students and parents can visit http://www.StudentLoanConsolidator.com or call toll free (877) 328-1565 to learn more and apply.

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StudentLoanConsolidator.com is a service of the Student Loan Network, a multi-national education services company offering students options for managing the entire education life cycle, from getting into their college of choice to financing their education and beyond. The Student Loan Network is based in Quincy, Massachusetts. Visit them on the web at http://www.StudentLoanNetwork.com for more information.

[1] A student with $115,000 in federal student loans compared consolidation at 6.54% and 7.14% over a 30 year term.

I’ll be the first to admit that it can be difficult to understand what types of loans can be federally consolidated. In fact, that is a pretty common question asked by our customers… So here is a quick run-down of what can be included:

• Stafford Loans - both Subsidized and Unsubsidized
• Federal Direct Stafford Loans - Subsidized and Unsubsidized
• HEAL/HPSL Student Loans
• Parent PLUS Loans
• Federal Direct Parent PLUS Loans
• Federal Consolidation Loans (when consolidated with another Stafford Loan)
• Federal Direct Consolidation Loans (when consolidated with another Stafford Loan)
• Perkins Loans
• Nursing School Loans

The most important factor to remember, is that all of the above listed loans, aside from the ‘already consolidated’ loans will remain at a variable interest rate. Consolidation will fix that rate, lower the monthly payment, reduce the rate further with borrower benefits, and therefore save you a bunch of money. And yes… the payment is lower each month because the term of repayment is stretched out. However, without any penalties for early or extra repayment - you can make bigger payments and pay off the loan sooner when it becomes affordable.

For more details, or to find out how much you can save, call 877.329.1565 - or visit StudentLoanConsolidator.com

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Please check out this brand new blog, promised to be packed full of helpful tips and pointers for all things Graduate Loans.

graduateloansatoz.wordpress.com

Had a borrower email me today and ask about how to pay for Grad school… here you go Matt from Buffalo!

There are a variety of options for paying for graduate school, and a few differences from undergraduate programs. In order of lowest cost to highest cost, here are the most well known options:

• Scholarships - essentially free money.
• The Graduate Stafford Loan - up to $18,500 per year, $8,500 subsidized, $10,000 unsubsidized.
• The Private Alternative Graduate Loan - Annual maximum of the lesser of $50,000 or cost of attendance minus other aid.
• Home equity/refinancing - leveraging your mortgage equity
• Private consumer loans - credit cards and personal lines of credit

How should you apply for these various financing options? In the above order:

• Scholarships need to be researched and applied for individually. You can search online for free using popular search engines such as Google or Yahoo, or use a premium search service such as FinancialAidOfficer.com to help you locate funds.
• Apply for the Graduate Stafford Loan using our online application .
• Apply for the Private Alternative Graduate Loan using our online application .
• Contact your bank or credit union for home equity, or use our online application .
• Private consumer loans can be obtained through banks or from StudentPlatinum.com .

Hope this is helpful - stay tuned for more info about Grad school in the days to come.

I know I know… I haven’t posted in a few days - My deepest apologies to all my faithful readers. We have just been slammed busy at the StudentLoanNetwork. Students are graduating, grace periods are ending… So needless to say, lots of inquires have been coming in about consolidation. YES you can consolidate during your grace period. YES your interest rate will be locked in .6% lower if you do.
Don’t hesitate - give us a call at 877.328.1565 or drop by www.studentloanconsolidator.com

StudentLoanConsolidator.com
StudentATM.com
Gradloans.com
ActEducationLoans.com
FinancialAidPodcast.com

Chilly mornings, early sunsets, and fall foliage…good-bye summer, hello fall! I can easily say that fall is one of my favorite times of year. By now, most of you who are still in college have settled back into your routines - a “minor” adjustment from the lazy days of summer. For those recent graduates, welcome to the world…it’s expensive here. Below are a few tips some recent grads have wrote in about - tips that should help ease the financial burden of life after college.

1. Develop a budget. Nothing can be me more daunting then paying your bills, working part-time, and looking for full-time work. A budget should help eliminate that panic feeling you get when bills are due. Will also save time - you won’t find yourself re-calculating how much money you have each time you see a pair of shoes or new camera you want. Already have a job? Fantastic - but a budget will still help. Don’t forget to set aside some cash for fun things…it will help remind you why you subjected yourself to years of expensive classes.

2. Student loans? Consolidate them - it will help with # 1. Once you enter repayment, which can’t be avoided (trust me, I tried) your loan payments will be very high. Coupled with rent, car payment, credit cards etc… it can become difficult to manage - Consolidation cuts your payment over 55%.

3. Network. If you are moving into a new city/apartment, utilize your Alumni association, already established friends, or social network sites like Myspace or Face book. You’ll find out from people who’ve already made a big move what to do and avoid. Also a great way to get furniture, find a roommate, or land a new job.

4. Sell that junk! Still carting around boxes of CD’s and other useless junk? Try and sell anything you haven’t used in the past 12 months that still has some value. Chances are someone on craigslist will want to buy it. For that stack of CD’s - rip them onto your computer, and make .mp3 back-up discs for redundancy. You can fit hundreds of mp3 format songs on one disc. Now you can sell the remaining cd’s pretty much anywhere.

Any other tips and pointers you may have, please feel free post a comment.

StudentLoanConsolidator.com
StudentATM.com
Gradloans.com
ActEducationLoans.com
FinancialAidPodcast.com