2010

Disclaimer

This web site is designed for information purposes only. To the fullest extent permitted by applicable law, this web site makes no representations or warranties of any kind, express or implied, regarding the use or the results of this web site in terms of its correctness, accuracy, reliability, or otherwise. This web site shall not be liable for any special, indirect, consequential, or incidental damages, or damages for lost of profits, loss of revenue, or loss of use, arising out of or related to this web site or the information contained in it.

:: Contact Us :: Sitemap :: Consolidate Debt Loans

Home Credit Card Debt Consolidation Loans Student Loan Consolidation Federal Loan Consolidation

Contents

How to Consolidate Student Loans

How to Reduce Student Loan Debt

How to Defer Student Loans

How to Apply for Loan Forgiveness

How to Consolidate Your Bills

How to Freeze Your Credit Report

How to Get a Low Interest Rate Credit Card

How to File Taxes Online for Free

How to File for Unemployment

How to File for Unemployment in Texas

How to File for Unemployment in California

How to File for Unemployment in Kentucky

How to File for Unemployment in Michigan

How to File for Unemployment in Nevada

How to File for Unemployment in North Carolina

How to File for Unemployment in Ohio

How to File for Unemployment in Oregon

How to File for Unemployment in Rhode Island

How to File for Unemployment in South Carolina

How to File for Unemployment in Tennessee

How to File for Unemployment in Florida

How to Apply for Financial Aid

How to Apply for Financial Aid at Ohio State University

How to Apply for Financial Aid at New York University

How to Apply for Financial Aid at University of Southern California

How to Apply for Financial Aid for College

Student Consolidation Loan and Debt Reduction

Borrowing money and eventually repaying student debts with a student consolidation loan is quite normal in the United States. With the skyrocketing tuition fees and other expenses in higher studies, people have few options if they wish to pursue a higher-paying career.

Reducing debt is one of the primary features of a financially savvy person. Tess Van Duvall, an educational debt management consultant from Emory University, Atlanta, explains:

“Try to borrow less than you think you will need. You can always borrow more later at no additional cost. When people have less money, they try to make it work. When you borrow more, you end up using it.”

Student Consolidation Loan

A student consolidation loan can be your way out or another burden. We must emphasize here both positive and not so positive possibilities when taking out another loan. Like all loans, consolidate debt loans will have an interest rate that is lower than the first one. Also, a consolidation will extend the repayment period for another five or more years. Most student loans have a repayment period of eight to ten years.

Tips on Repayment and Consolidation

Full repayment is required of all loans. However, you can minimize your expenses by repaying your debts even while in college. American students are no strangers to part-time jobs. Windfalls of $2000 to $3000 dollars can make dents in debts.

Pay the interest rates of your loans whenever you can. Unsubsidized loans have interest rates that run the whole grace period. Subsidized loans have subsidized interest rates. If you have three or four loans that have unsubsidized interest rates, pay the interest rates immediately and consider getting a student consolidation loan.

For college students still finishing their degrees, the interest rate might be as small as $16 to about $20. That’s just a pair of sneakers or a few burger meals. If you can spare that amount of money every month, you will be saving literally thousands of dollars after you graduate.

Other Recommendations

Julie Paulson, a financial strategist from Boston, sheds light on yet another option for repayment:

“Five family members contributing $200 per year can spare you $1,000 in borrowing per year of school. For an unsubsidized loan of $1,000 at 7.66% over a 10-year re payment plan, you will repay $1,434: over 20 years, you will repay $1,957.”

If your family can pitch in, why not? And another thing about consolidation: never consolidate loans that have different interest rates. For example, if you have a Perkins loan with a 5% interest rate and a Stafford loan with an 8.25% rate, you might lose the 5% rate to a 7% rate imposed by the lender.

Remember, you’re trying to reduce costs as much as possible. Always compute whether a particular consolidation will reduce costs or just give you more time. If a consolidation just gives you more time to repay, it’s not worth it.

Interest-rate reduction incentives is also a good avenue. If you can arrange for electronic payments to be sent directly to you consolidator, then there might be a chance that your interest rate will be reduced. Interest rate deferment based on income is also a possibility for debt reduction.