Student Loans Do Not Need to Be Ruled Out Due to Bad Credit

It is only logical that students who have already seen their credit rating sink low would have a tough time finding any lender to give them a loan. But the truth is that student loans are available even to those with a low credit rating. All that is really necessary is to know how to go about getting them.

When it comes down to it, lenders are used to assessing the risks associated with different applicants. When approving loans for students, one of the aspects considered is the long term prospects, which is why the loan generally needs to be paid only after graduation.

It is useful for students applying for loans to understand this, but equally that wisdom dictates that some effort is made to get ahead of the game, and strive to lessen the debt as soon as possible. Of course, summer jobs and taking a part time employment during the semesters do help. But it is vital that the terms and entitlements available as part of student financing is known first.

Get Advice from the Start

The first port of call after securing a place at college is to work out your student loan options. The best place to get advice on this is the Financial Aid office on campus. There is generally a vast array of brochures and information leaflets available there, informing students applying for loans of the best places to do so and the kind of conditions they will have to meet.

When a student is hampered by a bad credit history, a bad credit loans for students are an option which the Financial Aid counselor can provide information on. They can sometimes be available at higher rates of interest, and for longer terms, but they can provide the necessary funds to alleviate the financial pressures while studying.

Often, there is a very simple solution to the student financing problem, so it is well worth the effort meeting and discussing options with the counselor.

Private and Federal Loan Options

The counselor will certainly fill students in on the range of student loans available out there, not least the choice between private loans and public loans provided by the federal government.

The public route is one of the most assured ways for those in deep financial water, with the program designed specifically to provide loans to students at a low fixed rate of interest. Usually, a credit check is not required, though an income assessment is, to ensure only those in need actually benefit from it.

Students applying for loans from the private lending sector face a more difficult task, but there are some advantages. For one, the amount borrowed can be enough to cover all costs, including fees. Most banks and lending institutions offer student financing packages, so it is essential that some research is done before choosing one.

Get the Loan Guaranteed

One of the most effective ways of securing student loans, despite bad credit scores is to get the loan guaranteed. This is done by enlisting the help of a cosigner, someone whose credit is good and who is willing to shoulder the debt should there be any problems.

When offering loans to students, private lenders are only interested in the chances of seeing the loan repaid, so having someone to back the applicant up is a very favorable factor.

So, when when it comes to student financing, there are manageable options for every applicant that can lead to success. It may take some research and a little bit of advice, but there is no reason to think that a student loan is not available simply because of a poor credit rating.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com


Original article

When and Why Should I Consolidate Private Student Loans?

Imagine a graduation ceremony with family and friends. The happy student takes a few precious steps across a stage, then accepts a diploma while smiling for the camera. The student becomes a bone-fie college graduate; the last thing on his mind is how he is going to repay his student loans when they come due in six months. However, like it or not, those bills come due quickly and are often harder to pay than what was originally thought.

Unfortunately, this is an all too common scenario that repeats itself at the end of every semester. Despite loan counseling and student loan workshops, students are often ill-prepared to handle the amount of debt that will come due once they are no longer enrolled in college. Who can blame them? While in college, students are focused on projects and exams, not some hypothetical, distant future. No one imagines themselves working part-time six months after graduation because the job economy is so competitive, they can't get a position within their chosen field - let alone that they will be unable to repay their loans. In all reality, this happens quite often. Though there is little to be done about the job market, one can consolidate private student loans in order to ease the financial drain the repayment process will cause.

When to Consolidate Private Student Loans

Unlike federal student loans, private loans carry variable interest rates that can produce some pretty hefty hikes in payment amounts if the rates begin to fluctuate. Most students have several different loans; an individual that will consolidate private student loans will immediately begin to save money but the timing is not the same for everybody.

If the borrower had a limited credit history when the loans were originated, it is probably best to make regular payments for the first few years in order to improve his credit score. As everyone knows, the higher the credit score an individual can obtain, the better interest rates and incentives he is likely to receive from lenders - this is no different in regards to consolidating private student loans.

Also, consider consolidation as a way to become the sole borrower on the account. If the loan required a co-signer, he will be removed upon consolidation and thus no longer be liable for any part of the account. This is usually only possible after two to four years of making regularly scheduled payments.

Advantages in Consolidating

By consolidating your loans, the borrower can:

1. Receive a lower interest rate - most lenders offer automatic payment and relationship discounts; these discounts may appear minimal at first, but often add up to big savings over the life of the loan.

2. Have an option of rates - the borrower may choose a fixed or variable rate in order to receive the most competitive APR for their unique situation.

3. Maintain peace of mind - if an individual has multiple student loans, consolidating into one monthly payment will simplify his finances and just make life easier.

Most lenders also offer such services as loan specialists, high-limit consolidations, and online account access. Research each lender to determine their specific benefits and conditions.

Consolidating private student loans can last up to sixty days and is a lengthy, time-consuming project. However, for most borrowers consolidating is an excellent step towards financial independence.


Original article

How Student Credit Cards Make Campus Life Easier

Student credit cards are the latest innovation on campus. However, many students are unfamiliar with even the basics of how to use cards easily fall into debt. It is important to educate yourself and its associated fees work so you can make sure you are making wise financial decisions and not just racking up a bill that will turn into a huge burden to pay off later.

Costs and Charges

Because college students generally lack any kind of credit history, the charges and interest rates on student credit cards are usually higher.

There are ways to avoid this and get lower interest rates when applying for student credit cards. One way to do this is by having a co-signer. That way, the two of you can use the card and also co-manage the payments. If your co-signer already has a credit history, especially if it is a good rating, that will work in your favor and help you get lower interest costs and charges.

What is 6 Months 0% APR?

A six months 0% APR means that you will not be charged any interest for the next six months. Usually this is a promotional offer to attract students to apply for a new card. It is important to read the fine print and find out how much interest you will be charged after the six months are over. Of course, usually only the initial costs of starting college life are high and once a student has settled in to his dorm and gotten his books, etc., the remainder of his living expenses are cheaper. Hopefully, by the time the six months 0% APR is over.

Advantages

The advantages with having a credit card is that it makes so many things much easier for students, such as being able to rent an apartment, apply for a telephone line, etc. -All of these things become easier because it proves that you have a credit history and are reliable.

Often, having one is a requirement for renting an apartment and landlords might not rent to you if you do not have one. When all is said and done, having a credit card just makes one a more responsible, respectable person.

Getting the Credit Card that Suits You Best

Definitely no "one size fits all" applies to credit cards. So it does take some time and research to find out what is available and is also best suited for your particular situation and budget. Often you can find out a lot of information right online by doing a search on the major companies and what they offer students. Usually representatives from the major credit cards will also come to college campuses to explain the benefits of their particular credit card. However, applying online is usually the simplest and fastest way and might even benefit you with some discounts and special offers.

Make sure you do not treat your credit card like a toy and use it responsibly to avoid the pitfalls of over-use.

Joycelyn Crawford is the author of this article. For more information about Easy Loans for Bad Credit and Easy Home Equity Loan please visit EasyLoanForYou.com


Original article

Student Loans May Need Some Consolidation to Be Repaid

Beginning a professional career with crippling debt is not generally considered an ideal situation. But every year for tens of thousands of college graduates, that is exactly the situation they face thanks to the student loans they took out to get them through college.

College education does not come cheaply. In fact, statistics show that, over the last three decades, the cost of a college course has increased to a greater degree than the average income. That means that, even with inflation taken into account. the costs of college have skyrocketed.

Little wonder then than loans for students are considered a must by the vast majority of college goers. Not only that, but it is not unusual for a number of separate loans to be taken out over the four or five years spent in college.

In order to effectively manage these loans, it is advisable to get a student consolidation loan, which brings the individual debt together into one entity, thereby making the repayments more manageable. To some, this may seem an unnecessary step to take, but there are several reasons why it is the wisest tactic, and two in particular.

Helps Keep Good Credit

It is a little known fact that students loans cannot be written off in bankruptcy. In that regard, they are very different to any other loan, and the stigma of not repaying the loans tends to stick. The reason is that loans for students are given a significant period of grace, which effectively means that the lenders have lost money by the time of graduation. They therefore reserve the right for full payment.

Defaulting would mean a serious hit on the credit rating of a graduate, and understandably that places a lot of pressure on them once they have graduated from college. To avoid a harsh fate in a jobs market that is weak, a student consolidation loan is the most practical solution.

Helps Recover from Bad Credit

A second reason is that should a student already develop a bad credit rating, then it is imperative that the student loan is repaid if their credit rating is to recover. Unless a well paid job is found quickly, then this is not going to happen, leaving consolidation the only practical step to take. Every lender knows that students do not have any money, so in approving loans to students they accept a higher level of risk. However, when the time comes, they will expect repayments to begin.

What a student consolidation loan does, is allow a new loan to repay the old one, but crucially, a manageable repayment schedule for the new loan can be negotiated. It means that if a lender starts to demand repayments on the student loan of perhaps USD500 per month, then through consolidation that loan can be repaid in full, while the new loan can be repaid at a rate of perhaps USD350 per month.

The new rate means that the debt is much more manageable, and the original loan is cleared too. However, it must be pointed out that any bad credit that is developed will mean that the student consolidation loan will have a higher interest rate. Therefore, it is essential that a graduate does not delay in taking control of their student loan.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com.


Original article

How To Choose Sallie Mae Student Loans

Not everybody is fortunate enough to have the necessary finances that they can utilize to help finance themselves in going to college. However, finances should not be an issue that should hinder people from achieving a better future where getting a higher quality of education is concerned. These days, people who do not have the necessary financial means to attend a university can choose Sallie Mae student loans.

Depending on the type of educational program that an applicant wishes to avail of, there are different types of financial plans that they can actually take advantage of. And with different repayment options that they can also choose from, getting into the right colleges and universities and earning the right degrees from such esteemed institution is no longer limited to those who have the monetary means.

When selecting the right provider to approach in availing of these educational financial grants, it is very important that people will properly consider the firms whom they will be seeking the assistance from. They need to make sure that they do not only deal with firms who can provide them with the financial terms that they need, but also, they need to deal with reliable firms who will uphold the interest of their customers as well.

Thus, just because a particular provider is offering a handsome amount that you can avail of does not automatically make them a good choice. You will still need to verify if they are people that you will be able to work with conveniently, especially when it comes to the repayment terms that they are offering their assistance with. Thus, proper research in both the background and the services offered by these firms is important.

One should also be aware that there are certain requirements that they will need to comply with when applying for Sallie Mae student loans. It is important that they get to know all these requirements ahead of time, so that come the day when they will need to submit their application to the intended firms, they will no longer have to encounter such issues as being turned down just because they do not have the complete document lists.

Most of the time, people who will be considered eligible for these programs are those who are currently attending an eligible school and are also taking up an eligible educational program. Thus, prospective applicants may want to check ahead of time if the school that they wish to enroll in along with the specific course and educational program that they plan on taking up are considered qualified for such grants.

Even people who wish to apply for the grant who, are not studying in the United States can avail of the program, especially those studying at medical institutions outside the country. People who are also considered to be eligible to avail of study programs abroad can get to enjoy the benefits that are being offered for these types of financial grants.

To determine ahead of time if they have the capacity to pay for the Sallie Mae student loans that they would wish to avail of, prospective applicants are advised to take a look at the repayment options that are being offered by the provider. It is best that they ask as many questions as possible so all these inquiries will be duly addressed before the actual application process.

If the previously mentioned education planning topic interests you further you can learn more about Sallie Mae student loans by going to the site. Other areas are reviewed like credit card reduction and other important financial topics.


Original article

Where to Find Consolidation Programs to Help Pay Off Student Loans

Knowing exactly where to start looking for consolidation programs that help you get a handle on your college student loans is the first step to getting debt free from your education loans. There are two major programs that the federal government makes available to student loan borrowers to combine debts and lower monthly repayments. And, new recent enhancements to these federal student loan consolidation programs are making them attractive options.

The benefits of consolidation are important. Only one lender and one monthly payment. Payments made by electronic payments keep your credit rating pristine by not even giving you the option to miss a bill. The new Income Contingent Repayment (ICR) plans have options which could help get your loan excused after a specified period of making timely payments.

Consolidation programs available from the federal government include:

DIRECT LOANS -- Direct consolidation by the U.S. Department of Education. Borrowers make payments directly to the department. Most favorable terms.

FFEL LOANS -- The Federal Family Education Loan (FFEL) program. While FFEL finding is subsidized and supported by the U.S. government, these are in reality made by private lenders, such as your bank or your credit union. Therefore, your FFEL consolidation is repaid directly to the private lender who originated your paperwork, unless that lender has re-sold the note. In that case, you make your payments to the new entity.

Getting a Direct or FFEL consolidation loan depends on which option you originally took out to attend college.

In either case, the repayment (equaling the total amounts you've borrowed, the interest rate on the notes, and other features not listed here that you've already agreed to) will almost certainly be structured in a similar manner.

General Requirements:
The following federal college loans are eligible for consolidation:

Subsidized and unsubsidized Direct and Federal Family Education (FFEL) Stafford LoansDirect and FFEL PLUS Loans (aka "parent loans")Federal Perkins LoansFederal Nursing Loans, andHealth Education Assistance Loans.

However, you need to keep in mind that private educational loans are not eligible at this time.

A student loan borrower is free to get an FFEL consolidation during any of these three different time periods:

1. During your grace period after completing college
2. At the time you are in the repayment phase, or
3. During any qualifying periods when you have been granted a deferment or forbearance.

Therefore, as you can see, there is always an opportunity to get relief from mounting bills.

To apply you should contact the consolidation department of a participating FFEL lender for an application or more information.

For students still in school, the avenue exists that they you will still qualify for direct consolidation loans.

But beware that if you have defaulted on your student loan, there are a number of very specific requirements you must meet before you can get them consolidated to a more manageable sum. This is why it's critically important that you avoid default.

The interest rate you wind up paying by consolidating can easily be found with this online calculator at http://www.findhow2.com/free-loan-calculator-for-personal-loans.html

Maximum length of consolidation is 30 years. You can make monthly or quarterly payments. And there are no fees or early pre-payment penalties.

To apply, call 1-800-557-7392. (TTY users for the hearing impaired phone number: 1-800-557-7395)

Or, you can apply free online at: https://loanconsolidation.ed.gov

New rules announced to federal student loan consolidation programs now offer you some of the best options to get rid of student loan worries and find better terms to pay off student loans.

Gaining access to these critical consolidation programs should be your first stop as you attempt to become free of loans you took out to attend college. Others have done it and so can you.

Steve Johnson is the writer and publisher who founded FindHow2.com offering free articles on credit restoration, debt reduction, and personal financial management. One of the most popular topics at FindHow2.com includes free resources for student loan forgiveness programs.


Original article

Grants For College - How To Find Free Money To Pay For College

The purpose of college grants is very simply to help needy students afford to go to college. Students seeking grant money for college need to focus their personal search on the exact type of grant that will help further their goals, and grants that they actually qualify for to help them go to college.

Although not always an easy task, the search for college grants is indeed still a worthwhile endeavor.

Why Search For Grants?

Common sources where you might score grant funding include public civic organizations, private foundations, federal and state government agencies, college donors, and miscellaneous sources in your own local community.

Reasons for student aid are obvious -- not everyone has the means to pay for their college degree without some form of student assistance. College is expensive. Add to your potential college grants a mixture of personal savings, income from working a part-time job, self-employment or borrowing money in the form of costly student loans, and you should be able to find a way to pay for college.

The staggering cost of private, four-year colleges has put a strain on those seeking a higher education after high school. Many colleges and universities think nothing of charging $10,000 or more per semester.

Add to this the fact that rates of college tuition increases keep growing much faster than the rate of inflation, and the sad fact that they are fully expected to keep rising in the near future, and you will understand the dire need to uncover free money for college.

Grants For College -- How They Differ From Student Loans, Scholarships

Grants differ from scholarships and student loans is some very basic ways. Grants are actually free money you get to use to attend a college or university and pursue a specialized degree. Where student loans need to be repaid, grants are yours to use for tuition, fees, books, living expenses, you name it.

Grants are usually based on your actual financial need, as compared to scholarships, which are based on your grade point average or your past merits or career achievements and are awarded by civic organizations.

How To Locate The Best College Grants

Seeking out college grants takes time, dedication, persistence and knowledge. Grants are most often categorized by major headings such as:
Student-specific GrantsSubject Matter-specific GrantsCareer-specific GrantsDegree GoalsMinority BackgroundGender

While the final category, "Gender", may seem discriminatory, that is not the case. Some organizations specifically target their grants toward women, to help level the playing field in financial aid for female students.

The most commonly known grants are the FAFSA -- the Free Application For Federal Student Aid. Uncle Sam wants you to go to school, and enhancements to the FAFSA program have been immense. Most of the work can get completed online. It is quite simple to seek out, apply and qualify for the FAFSA federal grants program or at our website, FindHow2.com.

In any event, finding grants for college is well worth the time and effort you put into it, and grants remain a solid portion of college aid.

Steve Johnson is a writer who founded FindHow2.com, offering free, helpful articles on credit repair, credit card debt reduction, and personal financial management, plus "how-to" informative articles on a wide variety of topics. One of the most popular topics at FindHow2.com includes a free listing of the programs to get student loans excused.


Original article

Is Bankruptcy A Way To Pardon Student Loans?

The Condition of "Undue Hardship"

Many people are in debt due to the student loans they took out in order to pay for their college education. With many possible solutions to remove the debt once and for all, however the most favored is bankruptcy. But being students, claiming bankruptcy is defiantly a problem because the legal terms and conditions of the student loan clearly states that the loan is non dischargeable. Due to this very reason, the loan repayment causes the borrower "undue hardship". This hardship only occurs at time when the person is facing a high degree of financial problems that he or she will not be able to satisfy his or her basic needs once the loan is repaid. In order to claim bankruptcy, the borrower needs to affirm that he or she is facing undue hardship; however hard it may be.

History of Undue Hardship Clause

In the past, students were able to get rid of their student loans. However, lenders criticized the system, which lead to changes in the rules and regulations of the student loan contract. Now it is harder for students to get their loans discharges. Even thought this may seem unfair, the system was criticized because students took advantage of the system as they declared bankruptcy immediately after completing their students before they even got a job. This is why the rules and regulations of the contract had to be changed, as the lenders were losing out.

What the Clause Says About Student Loan Discharge

After the change in rules and regulations of private loans, the government felt it was necessary to apply this clause to government loans as well. This made student loan discharge even more impossible. However, in order to get a student loan discharge, you will need to prove to the government that your living of standard is not high and that you have tries every possible means of paying back the loan. Only then will your loan be pardoned.

The Sign of the Co-Signer

Even when you have met all the terms and conditions in the clause, you will need a co-signer. The co-signer is the person who signed the contract with you when you took out the loan in the first place. That specific co-signer will not be able to take into account his hardship exclusion.

What to Keep In Mind

When you decide to claim bankruptcy, you need to make sure that you have thought about it very clearly. You should only file for bankruptcy if it is necessary and there are no other options available to you. Make sure that when you are going to claim bankruptcy that it will pardon your student loan, otherwise declaring you are bankrupt will do you no good.

If you are in debt and you need to pay your student and other loans but are unable due to a low income job, you will need to visit the court. By visiting the court, you will be able to find ways to declare hardship and have a new start to your life debt free.

Hilary Bowman is the author of this article. She works successfully as a financial advisor with years of expertise on Military Loans for Bad Credit. Hilary publishes informative articles about Bad Credit Loans and other financial topics at FastGuaranteedLoans.com


Original article

How to Use Cosigners With Student Loans

When a student is preparing to go to college, one of the biggest questions often becomes, with what money. Some parents scrimp and save for years for their children's college fund; others address more immediate concerns as their children grow up and fall short when the time comes. Some students may have some of the money to pay for college, while other have little to nothing. The most popular ways to cover the costs are through scholarships and grants, because the money does not have to be repaid. When this is not an option or it is not enough, a student loan may be an alternative. Sometimes the student can accept the responsibility of borrowing and paying back a college loan; sometimes, however, they can't. Either way, the student's parents, grandparents or legal guardian may consider cosigning on the loan.

Terms
When someone cosigns with someone else, they agree to take responsibility for the loan if the primary borrower fails to make payments on time and in full. Depending on the financial stability of the potential cosigner and the trustworthiness of the student, there may or may not be anyone willing to cosign the loan. In some cases, the person does not have stellar credit and does not want to put it at further risk. In other cases, they may not have the financial abilities to agree to another payment should it be necessary. When they do agree to cosign, the complexion of the loan changes; sometimes dramatically.

Approval
When a student has an established adult cosign on the private loan, it often improves the chances of the application being approved. With two individuals instead of one to look to for payments, the applicant is a better risk for the lender.

Interest
Some lenders will lower the interest rate for parent-student loans. This not only encourages the parent to cosign, it places a lower risk on the account. Lowering the interest rate further improves the chances of prompt repayment.

Release
In some cases, the student is able to get a cosigner on the account. If circumstances change and the borrower feels that they can handle the principal and interest monthly payments, it is possible to apply for a release for the cosigner. For example, the borrower may be required to make 24 consecutive payments on time and in full before the cosigning responsibilities are lifted.

Regardless of the final outcome, having someone cosign a loan sometimes makes the difference between someone going to college and staying home or working at a lower paying job.

Author is a freelance copywriter who writes frequently about available options for student loans for those planning to enter college. If you are interested in parent-student loans, be sure to visit https://www.salliemae.com/.


Original article

Financing Your Education With Federal Supplemental Educational Opportunity Grants

Federal Supplemental Educational Opportunity Grants assist those undergraduate students signed up for a postsecondary education that cannot afford their educational expenses without financial aid. The grant is in place to enable them to meet their educational expenses to the successful completion of a postsecondary degree.

Federal Supplemental Educational Opportunity Grants are overseen by the Department of Education and are categorized under the Federal Student Aid Information Center. In order to be eligible, students have to be enrolled in eligible schools which may be public or private nonprofit institutions of higher education. These can include but are not restricted to universities, colleges, hospital schools of nursing, vocational-technical schools and for- profit institutions.

Students need to sign a statement of educational purpose, a statement of registration compliance (selective service) are not permitted to owe reimbursement on another a Title IV grant, cannot actually have a Title IV loan that is defaulted, cannot already have a bachelors degree and must file their Free Application for Federal Student Aid.

While the Federal Supplemental Educational Opportunity Grants program is overseen by the Department of Education, the disbursing agent will be the Federal Student Aid office. The Federal Student Aid office will both determine and notify participating institutions. From there the institution awards these funds to the students based on financial need. The necessity for financial assistance is as established using the Federal Needs Analysis. Federal Supplemental Educational Opportunity Grants require the institution to match funds with what is awarded.

To be qualified to receive the Federal Supplemental Educational Opportunity Grants the student is required to be a United States citizen or an eligible non-citizen (this implies those with an Alien Registration Card or those with Arrival Departure Record with specific designations). The student should also be accepted for enrollment into an eligible institution of higher education.

The total grants were $770,933,000 in 2007; approximately $757,464,800 in 2008; $757,464,800 in 2009 and $757,464,800 in 2010. Depending upon the need of the student and how much they are assigned designated by the institution, the grant received through the program can vary between $100 and $4,000; mostly, a new student was able to expect around $736 in 2010. A student cannot receive more than $4,000 unless the study abroad costs (within reason) exceed the cost of attendance at the student's home institution, at that point the student can receive up to $4,400.

There were around 1,302,740 recipients for the program in 2010. That year the exact amount available was $958,816,000; this represents the amount of funds awarded to participants in this program. This total can include federal appropriated dollars and institutional matching dollars.

Students that want to find out more or want to declare that they are interested in being considered for Federal Supplemental Educational Opportunity can contact the educational institution that they already attend or plan to attend in the future. More information is available at http://www2.ed.gov/programs/fseog/index.html

Michael Saunders is an editor of TopGovernmentGrants.com. He maintains Websites providing resources on small business grants and philanthropy giving.


Original article

Student Loans Can Be Repaid in 3 Main Ways

It is generally accepted that graduation is a joy for every graduate, until they are reminded of their student loans. The reality of college education is that large debts hang over the vast majority of graduates, placing considerable financial pressure on them to get a well paying job immediately. In the current economic climate, however, getting a job of any description is a challenge.

There is no doubt at all that providing loans for students is necessary, allowing young people of all backgrounds with a chance to expand their education and realize their professional ambition. Nor is there any doubt that the loans can add up to a lot of money.

The good news is that there are options available to graduates. The idea that loans to cover student costs should be a financial drain long after graduation no longer applies, and it now can take only a short number of years before the considerable debt can be cleared. Here are three ways in which they can be paid off.

Paying Through Your Income

The first is the most obvious, with your student loans repaid little by little directly from your salary check at the end of the each month. Of course, this can only happen after a job is secured, which hopefully will become the case soon after graduation. This system is generally expected, and it is a good idea to meet with your lender as soon as employment is found to iron out a repayment schedule.

This meeting is essential for two reasons. Banks and financial institutions are quite patient when it comes to providing loans to cover student costs. But just as they are expecting repayments to begin, the graduate is expecting to begin a fully independent life. Compromise can be reached regarding the size of the repayments, as well as the schedule.

Loans for students can be repaid over 15 years, allowing more manageable payments than if it were to be repaid over 10 years. The schedule can then be renegotiated when the graduate eventually gets a higher paying job.

Consolidating Student Debt

It is not unusual for a graduate to have a number of student loans from different lenders. This can sometimes be the case when graduates have changed courses, changed colleges or met with financial hardship and needed extra loans to cover student costs.

Regardless of the particular reasons, the wisest course of action is to consolidate all of the individual loans into one debt, thus reducing the repayments to just one. Of course, while loans for students tend to be flexible, there is less flexibility in this case and the interest rate can be quite high. After all, the lenders have waited 4 or 5 years for the borrower to be in a position to actually begin repaying.

It may also take much longer to repay the loan, with terms lasting as long as 25 years, though this does depend greatly on the size of the student loan itself.

Loan Forgiveness

It would be nice to think that loan forgiveness refers to the loans for students simply being forgotten about by the lenders. But actually, this refers instead to the option to have a large percentage of your loan paid off by simply choosing one of a range of community services.

It is already generally known that military service can wipe USD20,000 off the student loan debt as part of the GI Bill, but the Government is also willing to wave up to USD5,000 per year if graduates commit to teaching in high risk urban or isolated rural areas. Doing other forms of social work can result in the same thing.

Joycelyn Crawford is the author of this article. For more information about Easy Loans for Bad Credit and Easy Home Equity Loan please visit EasyLoanForYou.com


Original article

Student Loan Forgiveness - New Federal Student Loan Repayment Plan Offers Debt Relief Hope

Crushing student loan debt is hammering college graduates. Student loan defaults are soaring toward new records. College loan borrowers have called for debt relief. But now President Obama has proposed faster government-backed loan consolidation and loan forgiveness plans to help borrowers repay their college debts and give a boost to the American economy.

President Obama's decision to expand education loan forgiveness to more students now could very well mean that loans you took out to pay for college may get much easier to handle. Details of his new "Pay As You Earn" program, outlining new rules for repayment, are still emerging.

Loan consolidation at a lower interest rate is the main objective of the plan. Three major features of the plan benefiting college graduates struggling to make their monthly educational loan payments are:

Repayment Term

Each loan that would be consolidated retains its original repayment term. Thus, borrowers will pay less interest over the life of the loan than they would under the traditional consolidation programs.

Interest Rate

A fixed rate (not to exceed 8.25%) after applying the 0.25% interest rate reduction to qualifying loans being consolidated. Lower interest rates means more of the monthly payment pays off the principal balance.

Electronic Debit Payment Benefit

Those who take advantage of this new consolidation plan are eligible for an additional 0.25% interest rate reduction if their loan is repaid through the Department of Education's automatic debit system.

The loan consolidation program will only be made available during a 6-month window, Jan. 2012 through June 2012, so borrowers need to act fast.

The government wants those people holding both private and government student loans to be allowed to consolidate their debts right now into one new government loan. Such a move could slash their interest rates, and save them money in the process as the federal government speeds up roll-out of an income-based repayment program that was originally slated to begin in 2014.

College graduates would still be responsible to keeping making payments on their loans, but those revised payments would be capped at just 10% of their income.

And, best of all for those who borrowed tens of thousands of dollars to finance their college education, their loans would then be forgiven after 20 years.

It is still not entirely clear how many students the new law is aimed at helping; estimates range from 450,000 to upwards of 6 million.

When Congress passed the Income-Based Repayment Plan (IBRP) in 2010 -- the new law which drops the monthly payment to 10% of discretionary income and would forgive all college student debt after 20 years -- there was a long waiting period before it became a reality; it was originally not set to go into effect until 2014. Now, the new terms would take effect in Jan. 2012.

Low-income borrowers would benefit the most. If a student loan borrower qualifies, then monthly payments are based only on any income above 150% of the poverty line ($16,335, the current 2011 U.S. poverty threshold.)

For a graduate living on their own, IBRP payments would be based on what he or she earned over this $16,335. Moreover, if the graduate is unemployed and has no income at all, then no monthly loan payment would be due at all.

Although it is unclear how this monthly reporting would be done, this new debt relief plan still represents a positive step forward toward resolving the debacle affecting untold numbers of college graduates who are struggling to make their college debt repayments. More detailed information on how to get student loans forgiven, visit FindHow2.com.

Steve Johnson is writer and publisher of FindHow2.com, offering hundreds of free articles on credit restoration, debt reduction, and personal financial management. One of the most popular recent topics at FindHow2.com includes a review of new student loan forgiveness incentives to help lower monthly payments for graduates paying off education loans.


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Use the Government or Go Private for Those Bad Credit Unsecured Student Loans

Noodle cups and empty wallets are pretty typical for the average college student. Finances are tight. These times are also when students are offered lots of credit cards. Talking about a way to get into high debt, this is it. Often the bills go unpaid and lots of students are already developing bad credit histories and digging themselves into a financial hole while they really are not aware of what is going on. Before taking any of these financial hurdles, you must first gain a financial education.

Federally Backed Student Loans

There are many federally funded student loans for which you can apply. Of course, you may not qualify for all of them. But for those that you do, this is the best way to fund your education. These government unsecured loans have very low interest rates, the have agreeable repayment terms, and payment is deferred until your studies are finished. To find these loans, talk to your financial counselors at your school or do a search on the Web. You will be asked to fill out a Free Application for Federal Student Aid (FAFSA). It is an overall application for government sponsored student funds.

Private Lender Student Loans

If you cannot qualify or do not want to go with government loans, there are other options. Banks or credit unions offer unsecured loans for many uses, student expenditures among them. You are not obligated to use these loans in any specific way. You can use them to consolidate your debts, like all the credit cards mentioned above, pay your living expenses, or whatever is crucial at the time.

Hard to Get

One of the bad things about using banks or credit unions for these unsecured loans is that they can sometimes be difficult in terms of qualifications. And they put you in a larger pool of borrowers who want unsecured loans. Banks and credit unions only have so much to lend. You may be a riskier client than other loan seekers. This is the riskiest type of loans for banks and credit unions, so their requirements are rather high and interest rates can be high, too.

Show Some Collateral

If you cannot qualify for one of these private loans, it may make a difference if you have something valuable to offer to secure the loan. This will make you a better risk and more attractive to a lender. Is your late model car paid off. You might be able to use it for a $5,000 loan. Another thing about offering security of this type is that your interest rates can drop significantly. That is a good thing!

Options, Options, Options

Many places exist that offer bad credit student loans. Most of them can be found on the Web. You know the Web, do you not? Of course you do. While you are surfing, check out the sites for student loan lenders. Pick out five or six who offer the best rates and the most comfortable repayment terms and see what each can do for you. You might want to use a broker. That way your information only has to be submitted once and the broker will come up with a list of lenders who would be most willing to lend to you depending on the financial information you have imparted. This way your credit history only takes one hit. Too many hits on a credit report over a short period of time makes lenders think you are desperate for credit and therefore too risky to lend to. The main thing to do while you are a student is to keep your credit scores as high as possible while still getting the funds you need to keep in school.

Mark Venite is the author of this article and a successful financial advisor with 20 years of experience. He helps people to get approved for Bad Credit Personal Loan and Student Loans with Bad Credit. For more information about his services please visit him at AccessMyLoan.com


Original article

What's the Difference Between Getting a Federal Student Loan and a Private Student Loan

Attending school is a milestone because it can get really expensive. With some options already in mind, you should look at the student loan alternatives that are accessible to a college undergraduate. Educational loans can be very tricky, and are very confusing to most. In many situations, families are accepted for all different kind of loans and then are left in the dark when it is time to pay it back or do not realize that they owe as much due to accrued interest. With high interest rates and very unforgiving payment plans, it is advisable to really know what options are available to you prior to being seduced by college lenders with promises of fast money.

You could already be somewhat familiar with the terms 'Federal Student Loan' and 'Private Student Loan'; these are the two most popular types educational loans being used today. Do not allow the terms to deceive you, as they don't sound completely different, they come with very different stipulations and payment approaches in terms of how the money should be repayed. An educational loan is anything that is aided to the student or their family from the government or school the student plans to attend. These loans the student will pay back with interest at a later date.

A federal education loan is a specific type of loan that is aided to the student from the federal government; this enables the student to loan what the student needs financially. There is no need to pay the money back until the student has graduated from college or has otherwise decided to stop attending school. This loan can be used for books, transportation, moving costs, or a variety of other scholastic needs. When trying to get this loan the student may even find out that they are entitled to grants they were previously unaware of.

There are a number of different lenders that would certainly try to provide a loan. This is done to make money off interest and fees. It is the student's job to weed out bad loans and discover federal student loan providers that do not charge outrageous interest rates. Federal educational loans are typically the smaller loan amounts given to students and generally have a more relaxed repayment plan.

A private educational loan is a way more popular loan because these loan out much higher lump sums. This loan is provided to the student if they qualify after applying (to the lender of their choice). The money requested is commonly given to undergraduates in a large check but tend to contain hidden charges and exorbitant fees to repay. Generally, 3% to 4% in fees matches 1% interest rate. A private student loan is more difficult to get and has more complex repayment terms. The only reason a student should try for a private student loan is if they have maxed out the federal student loan amount and have hardly any other alternatives.

Due to comprehending the difference between a federal and private student loan, students can better prepare themselves for the eventual repayment terms beforehand and fully focus on their college experience.

Michael Saunders is an editor of TopGovernmentGrants.com. He maintains Websites providing resources on grants for non profits and grants for small business.


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