Category Archives: Loan Tips
College Loan Consolidation – Advantages and Disadvantages
College tuition is on the rise and students and parents alike are seeking additional methods to help pay for the soaring costs. Student loans, grants, scholarships and work-study are common ways to supplement or completely pay for the cost of college.
Student loans are probably the most popular of financial aid sources. It’s quite usual for a single student to take out multiple loans to cover the many expenses of a college education – tuition, transportation, dorm, books, etc.
At the end of a college student’s career, they often find themselves facing a hefty sum of financial payments which start after a six to nine month grace period post graduation.
Many students turn to College Loan Consolidation to reduce the stress of multiple, high payments, opting for the lower payments and extended terms of a student consolidation loan. While there are advantages to student loan consolidation, students should fully research and analyze all of the aspects of loan consolidation.
College Loan Consolidation – Federal vs Private
Federal loans are more popular than private loans for a few reasons. Federal loans have lower and fixed interest rates and additional benefits such as grace periods. Private loans usually have higher interest rates, and no grace periods.
When consolidating, keep the types of loans separate in order to retain the benefits of the Federal loans. Federal loans provide a cap on the interest rate, along with fixed interest rates.
College Loan Consolidation – Advantages and Disadvantages
It is important to consider both the advantages and disadvantages before applying for a student consolidation loan.
Advantages include:
A lower monthly re-payment amount
Lower interest rate, which may save you money in the long run
Organization of loans – make a single monthly payment
Disadvantages include:
Possibly paying more money over the life of the loan
Most likely paying on the loan for a longer amount of time – 10 to 30 years
There are few options to consolidate this loan later
If you decide that college student loan consolidation is for you, start by conducting extensive research. Begin with federal student loan consolidation programs such as Federal Family Education Loan Program and Direct Loan Consolidation. They offer fixed interest rates capped at 8.50%. There are also other free resources to help you choose. It is important to shop around and gather as much information as possible in order to make the best decision.
For private student loan consolidation, inquire with various lenders both offline and online. Many times, online vendors provide a lower interest rate and quick approval times.
Perform exhaustive research until you are completely comfortable making a decision, as this decision will make quite an impact on your financial future for a number of years.
Google Fast Cash A Steady Income Generator
Fixing your credit score is one of the most heavy duty if you don’t know how to handle things about your credit. Financial Credit Scores is also fantastic to start as our goal as the new season start. Credit experts believe that credit has two parts to take care. The first thing to take care is the getting rid of any outstanding debt that you currently have. The second part is the that you overlooked but is just as important to raise your credit score.
Let us consider the fact that nowadays many people are in trouble when we speak about credit health. Too much use of credit cards is one of the biggest problem. It is not also to late to start fixing the problem. You almost need to approach but you can also get over the bad habits that are keeping you from having good credit. This is always a good idea to keep in mind that credit cards should be abuse as many others are doing.
Let me suggest that your first step to take is to start playing off the card with your lowest balance through adding just a bit more every month. Always keep in mind that once your credit was paid off, then the amount you were paying to that card and apply to the next biggest card. Credit cards are also a hierarchical state of all credits. You must have always a reason why you spend your credit.
Good Credit handlers do not cancel credit cards once they are paid off! You must cut your credit cards up. Always consider the big three of the credit reporting firms use the amount of available credit. You have also to determine your credit scores in any time.
Should be the emergency card be available? My answer is yes, but you must also freeze this card in a block of ice so that you can only use it is you take time to thaw it out. This is a strategy that will prevent you from making a snap decision and give you some time a enough reflection of this emergency spending.
Credit cards must be always taken good care so that you will not regret at the end. Paying it in the right due time is necessary. It should be use according only on what you need and not by spending it for no important reason. Good credit users usually are the one that is very successful and get higher credit than those easygoing users. Do not remember only this day as a one day activity that you will spend everything. Keep in mind that there is always a future and credit cards are always mean for the future use. Use it wisely!