ConfusedBoy asked:


Hi, I’m looking at consolidation loans that offer cash rebates. Right now I’m looking at $1,100 rebates on my student loans with MOHELA. However, I was hoping to pay off a $4500 credit card bill with either a rebate or by borrowing more than I owe. Are there any companies that allow you to borrow more than you owe (l did this to pay rent as an undergrad) or include CC debt in a consolidation loan? Thanks!

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Apurva Shree asked:


In today’s world of competition, education is getting costlier with every passing day. Many students taking multiple loans are trapped in the net of non-repayment. For them, student loan consolidation acts as a savior.

What is student debt consolidation or student loan consolidation?

Student loan consolidation is a system where the students are offered a student debt consolidation program for their education loans. This is system where the students and their parents/guardians are benefited. Not only does it make loan repayment easier in the form of a single payment every month, it also reduces what the students have to shell out every month if they had to pay each loan separately.

Federal Loan Consolidation is only for those loans that are approved by the U.S. Education Department. Such loans such as Federal Perkins Loans, Stafford Loans and PLUS Loans are called Federal loans. You cannot group non-federal loans and federal loans together. By non-federal loans, we mean those loans that have been taken from private banks, relatives, or friends. You need to look for a separate debt consolidation program for these loans.

Advantages

Student debt consolidation has two big advantages. One, the parents, or the students do not have to keep a track of all the installments and the due dates every month. They just need to remember one. Second, the monthly installment that the borrower has to pay is lesser than what he or she would have had to pay if they were paying for each loan individually. In some cases, the savings can go up to 45% per month. Therefore, the borrower is actually saving money from student loan debt consolidation.

Other than these advantages, there are some plus points that are in most cases not evident immediately. By opting for a student debt consolidation, a student, and his family is actually protecting themselves from a poor credit rating. Yes, since you do not have to remember numerous installment dates, you are more likely to repay your loan on time. Besides, with more money in hand, you are actually reducing the chances of bad debts in other areas of your life!

The Other Side of the Coin

However, things are easier said that done. Before opting for student loan consolidation, conduct an expensive market research on the debt consolidation companies. Look for the best debt consolidation program and the best debt consolidation quote. Just because, a company is offering a great interest rate, it does not mean that you are saving a lot in the end. Look at the loan tenure; it is also likely that the duration of the loan is longer than expected! Ok, if the student is confident that he can pay back before the tenure ends, he should keep an eye out for early repayment fines!

Now, just because a debt consolidation company is charging a high rate of interest or a low rate combined with longer tenure, it is not a fraud. The decision primarily lies on the borrower and the choice of student loan consolidation he makes.



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Apurva Shree asked:


Student debt consolidation can be a huge benefit to students who are struggling with the burden of unmanageable student debt. Those who have taken student loans to study often find themselves burdened with payments that may appear overwhelming, especially immediately after graduation. A good way to deal with this is to embark on a student debt consolidation program.

The trick to making student loans consolidation work for you is to understand that many of the benefits of debt consolidation are long term ones. For students looking for student loans consolidation options, it is a good idea to first do some research on what kind of benefits are being offered by different lenders and companies offering student debt relief programs.

What To Look For

Before starting a student debt consolidation program, make sure that you are clear about what you want to get out of it. Remember that these kinds of programs will offer reduced monthly payments, an overall debt reduction and an easier repayment plan. By shopping around and comparing different offers from different student loan consolidation companies offering student debt consolidation plans, you will be able to find the best student debt consolidation package for you.

Reduction Action

While student debts can look like an insurmountable obstacle at times, understanding how student debt consolidation works can drastically help in reducing your repayment and help you save money in the end. One of the key factors to look for is that the debt consolidation program should be able to reduce your monthly payments. By consolidating your student debts, you can avail offers that will reduce your monthly repayment amount by almost 60%. However, these kinds of programs usually translate into extended payment periods, thus raising the amount paid as interest.

Looking for low interest rate debt programs for college loans is another way to save big on student loans. Some student debt consolidation programs offer interest rates as low as 5.25%. Many lenders offer additional reductions if you meet other requirements as well. Another factor to keep in mind is that most lenders will not charge extra fees for consolidating debt. This means that you will not face extra charges for taking care of your debt earlier than expected. This is a huge advantage since you can free yourself of debt when you are ready and save a good deal of money on interest. Also bear in mind that interest on consolidated student debts are tax-deductible.

On graduation, most lenders offer extended benefits to students. This can include benefits like forbearances or further reductions in interest rates. While student debt accumulation can seem overwhelming at times, there are a number of ways to deal with student debt quickly and avail big savings in the long run. Understanding how student debt consolidation works is a smart first step in dealing with student debt.



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crushqueen0204 asked:


Here is what’s going on with me. I have about 30,000 dollars worth of student loans, however I have them through more than one place…I have one through Astrive, a couple of Direct Loans, and one through Wachovia. I also have a car that my mom took out in her name and is going to want off of her credit that’s around 13,000. So, it comes to around 50,000 total of debt. I would like a debt consolidation loan, not only to get the car off of my mom’s credit, but to make things easier for me, because making the minimum payment to everything is going to cost me more per month than just paying one place. Plus, a loan will build my credit. The thing is, I have bad credit because I was swamped with medical bills a couple of years ago. Does anyone know of any companies that will give out either personal or consolidation loans of the amount that I need and will work with people of bad credit?

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TooMuch asked:


I’ll be graduating this summer with about $17k in student loan debt. I’ve accumulated about $3k in savings so far, and I’m hoping to save another $3k for by the time I graduate (I work full time and still live at home).
My question is what’s the best way to approach the loan debt? First, none of my loans are consolidated yet. All but one $3500 loan is subsidized. Finally, I’d like to move out of mom’s basement sometime in the next six months.
Given that, should I look into consolidation? Should I dump a chunk of my savings into the loans to pay them down quickly? Should I jsut stick with the minimum monthly payments and save my pennies?

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araorun1127 asked:


i have a very low credit score of 533. however, i have no credits cards outstanding. i had one credit card bill, but i paid it off about two years ago. everything that is on my credit now is generally small stuff–excepting my student loans–under a couple hundred dollars. i have mostly medical bills — LOTS of stuff that got sent to collections for being unpaid. uninsured hospital visits, ambulance rides, laboratory tests, etc. i didn’t have insurance for over 2 years. is using a debt consolidation company really a viable way to go? i have heard that simply using one reflects badly on your credit, but i really don’t think my credit could get a whole lot worse. i have at probably one or two dozen negative things on my credit report, but not a single one is a credit card! you’d think that would make it easier to work with–at least i’m not being charged interest or late fees on any of these debts. but add it all up and it’s a lot! any advice??

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cwtt asked:


I have 5+ yrs of credit card debt and also had a repo about 2 1/2 yrs ago. I am able to begin getting my bills paid. Will credit consolidaton help or should I contact my creditors and set up payment arrangements. I have a least 5 credit cards, hospital bills, and a student loan. What is my best option?

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John Marshall asked:


A Student is believed to be the future of a nation. So, it is generally assumed that he should concentrate on studies and really it happens so. But, unfortunately there are incident when a student becomes bound to put on debt simply because he is not supposed to be calculative enough. Well, as there are problem, there are solutions too. There are student debt consolidation loans to hook any student off his debt.

The main purpose behind Student Debt Consolidation Loans is to help him out to combine and pay off all his earlier debts through a new single debt which is payable with a single rate of interest. It is obviously a good choice to have single loans instead of multiple ones. The main reason why student gets debt is with the fact that he takes multiple debts the result of which is shown in his multiple debts. So, while evading multiple debts, student debt consolidation loans serve as a true ally.

Student debt consolidation loans offer debt consolidation loans to everyone. They are open to both the kinds of people, those who are capable of pledging collateral and those who can not. However, in terms of secured student debt consolidation loans serve better facilities like easy terms as well as cheap rates because of the collateral attachment involved. And, unsecured debt consolidation loans show up another flamboyant side, the loans without any collateral. However, student debt consolidation loans are also available for the bad credit holders, only with a slight variation in rates of interest.

Yet, rates of student debt consolidation loans, in fact remain always cheap because of their availability online where they have to be cheap enough because of the high competition prevailing among the lenders. Student debt consolidation loans are also fast at an unmatched pace while online. Loans are only clicks away there.



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Alex Jonnes asked:


Student loans can influence your credit and your future decisions. You are a student. You have borrowed a substantial amount for college is less likely to pursue higher education. However, due to financial hustle and bustle, you may not be able to pay off the borrowed money. You get tagged to a debtor. There are several ways to reduce debt burden. One is that if you negotiate with your creditor to reduce the rates of interest. That negotiation simply goes in vain since a least amount of creditors feel good doing that. The best course of action comes in front of you is that of Student debt consolidation loan.

The consolidation loan is suitable for those students who are:

• If you have been paying high interest charges on your existing debts and want to switch to a cheaper alternative.

• If you need to reduce the size of your monthly payments, perhaps because of a reduction in income.

• If you need to release additional money to meet unexpected commitments, freeing up extra cash from your home whilst ensuring your monthly repayments do not increase.

Student debt consolidation loan companies may be willing to make payments on all of your debts. However, their services relate primarily to unsecured debts, such as credit cards. Consolidation itself is not the same as credit counseling and it is not suitable for every student who is in financial distress. Those students, whose debt is primarily secured, for example in the form of a home mortgage or car loan, usually get little benefits from consolidation loan.

For all that, a financial counselor is assigned to you. Financial counselor is financial expert of this cause. He assists you with his best financial expertise. He negotiates with your creditor to reduce their rates of interest or balance reductions on your behalf. His negotiations are likely reflected on your credit record. As a result, your creditors may treat you as you legitimate borrower when issuing future credit.

By and large, it is actually as simple as slashing the cost of your current repayments to ensure that you are free and clear of your debts as quickly as possible. The important thing is to ensure that you get a good deal. There are many lenders available online and offline. However, for fast processing and instant approval, online procedure proves to be a good applying tool.



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Darnell Scott asked:


Rising tuition fees have given rise to students having to take student loans. However, these high student loans give a high impact on the day to day lives of the students. This gives rise to difficult financial situations for the student during and after their studies. This is the reason students turn to student debt consolidation loan to rid themselves of the burden of the student loans.

Student debt consolidation loan means having the multiple student loans replaced with a single loan with a lower monthly payment scheme to be paid over a longer repayment period. Though a student debt consolidation loan is beneficial, it is important to know its pros and cons before signing up for one. The huge students’ loans have an impact on your future decisions and on your credit history. So make it a point to have your student loan debt not exceed 8% of your income to get a good credit history.

There are many types of student loans, but the most common student loans are the private and federal loans. It is not advisable to go in for student debt consolidation loan by mixing these two loans together. Instead, it is better to consolidate the federal student loans and then the private loans, separately. This is because when consolidating both these kinds of loans, the federal loan benefits will all be lost.

For one to be eligible for consolidating his/her student loans, it is important that the person is no longer enrolled in a school. The person should also be repaying the debt or at least be in the grace period of the loan. Through student debt consolidation loan, instead of making multiple payments to all your lenders, there is only one debt consolidation company to whom you have to make your payments. It is the job of this company to pay off your lenders. Interest rates are lowered as the debt consolidation is a second mortgage, which has lower interest rates. Lower interest rates lead to lower monthly payments. And with only one payment, the monthly installment will be lower too. As you only have to pay a single person, all clarifications can be made through only one person instead of approaching all your lenders.

All things have their share of good things and bad points. There is always a chance of falling into more debt with student debt consolidation loan. This is because there is only one payment to be made, with more money remaining at the end of the month. This may prompt you to use your credit cards and spend money again. Student debt consolidation programs take a long time to cover, so you will be spending a good number of years repaying the loan. Moreover, though the interest rate of the student debt consolidation loan is low, over the long loan period, you will actually be spending more than you would have spent if you had retained the individual loans.

As consolidation loans are secured loans, you stand a chance of losing whatever you keep as security if you don’t repay the loan. So it can be seen that though student debt consolidation loan is beneficial, it also has its drawbacks. It is up to the individual to decide whether to opt for student debt consolidation loan or not.



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