Student Loan Consolidation an Attractive Option This Summer

[Jun 1, 2007.]

 

Financial experts are saying that student loan consolidation may be an attractive option in summer 2007. In case you're unaware of what's involved, here's how it works: you combine your existing federal student loans into a single new loan, allowing you to cut your monthly payments by as much as 53 percent. Stafford, Direct Stafford, Parent PLUS, Perkins, HEAL, FFELP, and Direct loans are all eligible for consolidation. It may also be possible to consolidate your private student loans, although this must be done through a separate program.

Some of the advantages of consolidation include simplifying your finances by reducing your payments; locking in interest rates; enhancing your credit rating; and saving money when your finances may be particularly tight. Consolidation programs tend to offer personalized customer service which enables you to decide if consolidation is appropriate in your particular case. It's best if you can go with a program that provides customer-friendly service throughout the consolidation process, reducing the risk of any bureaucratic headaches which can tax your time and your mind.

With loan consolidation, you not only cut your monthly payments-you also extend the amount of time you'll have to pay off your debt. When you consolidate, you can expand the repayment period from the standard decade to 30 years. The amount of time you'll ultimately need depends on the size of your debt and the amount of money you expect to earn from your job.

College graduates who consolidate their student loans are finding that they can free up money for a number of necessities, including car payments, child care bills, gas costs, and other household needs. Once you consolidate, you may be amazed at the amount of money you'll save. You may also find that your stress level is significantly reduced since you won't have so much of a monthly debt burden to contend with.

Julie Ann Amos
June 1st 2007
More Information:

• Debt Consolidation - What Are The Options?
  Having a lot of debt is not uncommon today, and for many, it seems that knowing how to get out of debt is just about as uncommon, too. If you have a lot of debt and want to find some relief, there are a number of options that may be available to you.


• Need To Consolidate Your Debt? - Get A Personal Loan?
  When you find that the monthly payments you make on your debts are getting to be more than you can handle - it is time to do something about it. Or, if you are having late charges being added because you simply are not getting paid enough - or at a time convenient to make the payments.

Recent Student Loan News

• Lawyers Join the Debate Over Student Loan Industry Practices
  As states such as New York and Illinois and bodies such as Congress and the U.S. Education Department investigate practices by the student loan industry, class action attorneys are also entering the mix—not to anyone's surprise. [May 6th 2007]


• Student Loan Xpress Becomes One of the Nation's Largest Lenders
  Student MarketMeasure, Inc., a student loan information service, has announced that Student Loan Xpress has become the 8 th largest federal student lender in the U.S. [May 4th 2007]


• Lessons in Managing Student Loans
  Unfortunately, it’s easy to find yourself mired in student loan debt once you embark on your college career. Because of the high cost of tuition, housing, food, clothing, books, and other supplies, you may be tempted to rely almost exclusively on student loans to finance your education. [May 3rd 2007]