Student Loan Consolidation Hot Topics

That’s right - you can’t hide from it anymore. If you graduated this past spring, the chances are your grace period is over and you have to start paying back your student loans. This is not the end of the world for you, just the beginning of a long relationship with your loan servicer. (Technically, the relationship started 4 years ago…but who’s counting)

You have some options. First and foremost, examine your monthly budget, and include your new student loan payments. If you can afford to make the payments, don’t defer or put your loans into forbearance just to save money. When you put your loans into forbearance or deferment, interest will continue to collect on your none-subsidized federal loans, which gets capitalized once you go back into repayment. This basically means that your total payback amount will increase. Not to mention, deferment and forbearance are intended to be used during financial hardships. If you use them up now when you can afford to pay, you won’t have them in the future when you may actually need them.

Still, you can afford the monthly payments, but now you have much less cash lying around. Consider consolidation - you can cut your monthly payment nearly in half. And, there is no penalty for extra or early repayment. So, when you claw your way to the top of the corporate ladder, and land that high paying fluff job, you can payback your remaining loan balance without being penalized.

Finally, don’t forget to consolidate your private student loans. They’re probably going into repayment right about now as well. And if you have a lot of private student loans like me, then consolidating those will also help that monthly budget stay fit. Just like federal consolidation, private consolidation will combine all of your private student debt and lower your monthly payment, without any penalties for extra or early repayment.

Just a friendly reminder to all those 2007 spring graduates, August 1st marks the halfway point in your grace period. For those who don’t know, your grace period is the six months after graduation, before your first student loan payment is due. That’s right - you have to pay those back at some point. While I realize the only thing on everyone’s mind right now is warm sunny beach days and evenings filled with BBQ’s, a few minutes of preparation now could save a bundle of cash in the fall.

If you consolidate your federal student loans during your grace period, you will save an additionally 0.6% on your interest rate. That could translate into thousands of dollars in savings. Plus… you’ll get all of the benefits of consolidation; such as a lower monthly payment, lower interest rate with borrower benefits, and repayment plans designed to fit any budget.

So, if you planned on consolidating your loans in the fall when your repayment begins, take a few minutes right now and apply. Give one of our loan counselors a call – they’ll give you an idea of what your lower monthly payment will be, and how much you can save. Call toll-free (877)328-1565.
And have a great summer!

Yes - someone actually emailed me today and asked me “what’s all the fuss about” I assumed they were inquiring about student loan consolidation, as they emailed from one of our consolidation sites. So I decided to answer their question in plain view of all my faithful readers.

I guess this question can be answered relatively easily - the fuss is about saving cash. In this case, the word fuss and buzz are nearly interchangeable (I like to put a positive spin on things). Depending on the time of year, and proximity to graduation, the fuss/buzz can involve getting a consolidation application submitted on time in order to:

* Get a lower interest rate (July 1st, interest rate adjustments)

* Save an additional .6% for grace-period consolidations (consolidating within 6 months of graduating)

* Lower your monthly payment

* Instill piece-of-mind that you’re on your way to becoming financially savvy (my favorite)

If you think back to when you first began discussing college, the fuss/buzz was about being able to pay for tuition. Whether or not you or your parents filled out the FAFSA or loan applications, conversations were held about which schools were affordable, how much aid your selected schools provided and the overall cost of your education. Now that school is over and your student loans are in repayment, a new conversation rears its ugly face… “How do I make these monthly payments???”

If taking out student loans was a good choice to help fund your education, consolidating those loans into one lower monthly payment should be your next logically good choice. Give yourself a chance to find a decent paying job, secure an affordable place to live, or travel around the planet - whichever choice you end up making, consolidating your loans will eliminate a great deal of the post-grad financial burden.

Once you’ve become financially established, you can afford to make bigger monthly payments - which will significantly shorten your term of repayment saving you even more money.

So the “fuss” as described above is simply about getting your post-grad finances squared away and saving some extra money. Stay tuned for other tips on post-grad life.

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

Over the past month, we have seen a huge increase in the amount of consolidation application requests. Many of these requests are June graduates trying to get their applications submitted before their grace period expires.

If you are currently still in your six-month post-graduation grace period, you can apply for a consolidation and receive additional savings. During this six months, Stafford loans disbursed before July 1, 2006 have a 0.6% lower rate. By consolidating during this period, you are able to lock in this discounted rate. If you wait until your grace period is over your rate will increase by 0.6%. Your application must be signed and received in our office before your grace period ends in order to obtain the additional 0.6% discounted rate. When you fill out your consolidation application, be sure to include your grace period end date, and we will complete your consolidation when your grace period expires.

If you are not sure when your grace period expires, give us a call toll free at 877-328-1565 to speak with a loan counselor.

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If you graduated this spring, there is a good chance that your grace period has almost expired. Consolidating during your grace period will lock in the lower interest rate of 6.54%. That’s .6% less than the repayment interest rate of 7.14%. If that isn’t enough incentive, there’s always the fact that once your grace period is over, you have to start repaying your loans. Consolidation may not eliminate your monthly payment, but it certainly makes it more manageable - nearly 60% lower.

So consolidate today and simplify your finances with one monthly payment, put money back in your pocket with cash saving borrower benefits, and cut your monthly payment up to 60%. And if you’re still in your grace period - get all this plus the lower interest rate of 6.54%.

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

The nights are getting cooler and sun is setting earlier - summer is nearly over. Lazy days of fun at the beach and relaxing outside will pave the way to fall and winter shopping. Help ease your finances this fall season by getting your student loans consolidated today! With car payments, insurance, rent, and living expenses, the last thing you need to worry about is a huge monthly student loan payment. Whatever your monthly payment is now, consolidation can reduce it by up to 60%. And there is no penalty for early/over repayment - so you can pay more when it’s affordable.

Call today and speak with our expert loan counselors at 877.328.1565. Or check out: StudentLoanConsolidator.com.

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Quincy, MA (PRWEB) May 31, 2006 — With the final auction of the 91-day Treasury Bill on May 30, 2006, federal student loan rates have been set for the new academic year beginning July 1, 2006. The new rates for federal student loans are:

Stafford Loans for students in school: 6.543%, up from 4.70%
Stafford Loans for graduates in repayment: 7.143%, up from 5.30%
Parent Loans for Undergraduate Students (PLUS): 7.943%, up from 6.10%

These new federal loan rates take effect for existing federal student loans as of July 1, 2006. Borrowers who want to lock in the current rates, which are much lower than the new rates, can do so by consolidating their student loans up until June 30.

“With all of the recent changes in legislation surrounding the federal loan program, there may be some confusion about who this rate increase will affect,” states Jonathan Rudy, Director of Loan Consolidation at www.StudentLoanConsolidator.com. “It comes down to this - if you’re a student or a parent with federal student loans, and you don’t consolidate before June 30, your interest rates are going to increase and you’ll end up paying thousands of dollars more in interest.”

The savings borrowers can expect by consolidating are significant. The average college graduate with $30,000 in federal student loans who consolidates before the deadline, will save more than $6,300 in unnecessary interest - savings that will only occur if borrowers consolidate before June 30.

Should graduates consolidate their student loans? “Yes, absolutely - there’s no question about it,” states Rudy. “With no fees, no credit checks, and cash building borrower benefits, there’s no reason not to consolidate right away. Most importantly, since the new rates are nearly 35% higher, and the time to consolidate at today’s lower rates is nearly gone, borrowers need to act quickly and consolidate their loans today.” Said Rudy.

“When federal student loan rates increased last year, the influx of applications caused major industry wide processing delays - We can’t stress enough how little time is left to apply,” urges Mr. Rudy. “Very often graduates wait until the last minute to file their paperwork and by then, they may not be able to insulate themselves from the rate increase. The earlier you apply, the better off you’ll be.”

Students wishing to file a consolidation application should do so at http://www.StudentLoanConsolidator.com immediately or call (877) 328-1565.

Attention Class of 2005! If you have Federal Stafford loans, your 6 month grace period will be expiring soon. This is your last chance to fix your loans at the lowest rate possible! You should receive (or may have received) a notice from your loan servicer(s) letting you know that your grace period is set to expire.

If you didn’t already know, the interest rate on a Stafford loan is 0.6 % lower if you consolidate before repayment period begins. This means that if you consolidate your loans before your grace period expires, your interest rate will be fixed at the lower rate. This 0.6 %may not seem like much now, but over repayment, it can add up to hundreds, even thousands of dollars in savings’. Please call now to take advantage of your grace period, and get started on your consolidation. Remember it is your Federal benefit and it’s free!

Thank you,

Customer Service
The Student Loan Network Team
877.328.1565
customerservice@studentloan.net

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Write us at:
The Student Loan Network
15 Cottage Avenue, Suite 501
Quincy, MA 02169

Visit us online:
www.studentloanconsolidator.com

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I noticed today on my way to work that the air was getting chilly and the leaves were turning orange. Summer is gone, fall is here and as we approach the holiday season, something else will disappear too - your student loan Grace period!

If you weren’t previously aware, during your grace period, your Federal student loans remain at 4.7% without mandatory repayment. Once that six month period ends, the interest rate jumps up to 5.3% and repayment begins. If you graduated this past spring, add six months to the day you stopped taking classes and that’s when your grace period ends, interest increases, and repayment begins. My advice for anyone who is tossing the consolidation question around – Get started right away! Because consolidation takes several months, you shouldn’t wait until your grace period has completely expired. Leave yourself a 4 or 5 week window to get all of your questions answered, and the application filled out and submitted.

Questions about how much you can save by consolidating during your grace period? Not sure when your graduation date was? Let our loan counselors at StudentLoanConsolidator.com help you find the right answers. Calls us toll free: 877.328.1565

Finding the right consolidation company can prove to be a difficult and confusing process. Lets face it, there are a lot of companies who offer Loan consolidation; and with so many companies on the internet sending emails and promos, which one should you choose? For all those students and parents shopping around for the right company to consolidate their loans, I would like to share some helpful pointers that might speed up the process and relieve the stress headaches!

Where should you begin?

When consolidating Federal student loans, make sure to choose a company that offers Federal loan consolidation; not private consolidation. This type of consolidation falls under the Federal Family Education Loan Program (FFELP) essentially, the same program that your loans originated from. It will be listed at the top of the application, in the left hand corner. If it’s not listed on the companies website, try calling the toll free number and speaking with one of their loan counselors.

Make sure to read the fine print!

Under FFELP guidelines, all federal consolidations receive the same interest rate; there are NO exceptions.

Here is a break down of those interest rates:

Grace period (0-6 months after graduation/withdrawal): 4.7%
Repayment (loans take out after July 1st 1998): 5.3%
Repayment (loans take out before July 1st 1998): 6.1%
Perkins Loan: 5%
Parent Plus Loan: 6.1%

You might notice lower interest rates listed on certain advertisements and websites. These lower rates include reductions received from borrower benefits programs.

Borrower Benefits - where the savings begins:

While all companies who work under the FFELP program have to offer the same interest rates, they can offer different borrower benefits. These programs might include a rate reduction of .25% for enrollment in automatic checking account withdrawal, and an additional 1% reduction for on time payments. Make sure that your loan portfolio qualifies for the benefits being advertised - some companies have loan balance requirements. For example, the offer in question might say interest rates as low as 2.75%. However, that low rate (grace period rate of 4.7% with future on time rate reductions) might only be for borrowers with loan balances of $40,000 or greater. If you are not in your grace period, and have less then the required amount for the benefit, your fixed interest rate will be higher then advertised. There is nothing wrong with companies offering their benefits in such a manner, just be sure to read the offer in detail, and make sure it applies to you.

Do your homework, and ask lots of questions!

Contact the company. If its not clear what interest rates or benefits you can receive, call the companies toll free number and speak with one of their loan counselors. They should be able to look up your loans and calculate what your new interest rate will be. Also, by speaking with someone on the phone, it will give you a better feel for the company. Try writing down any questions you have before the call is made, this is your opportunity to gauge how well the company knows their info.

More pointers coming soon!