Each college student and graduate knows that finally the student loans must be paid off. Sadly, the employment choices available for college graduates fresh out of school commonly do not provide enough income to pay the main living expenses, let alone all the loans. As Luck Would Have It, help is visible for new graduates that can help consolidate student loans. Most often, this help is accessible through the original banks who provided the loan arrangements and in 2008 online help is more prevailing then ever. This help is in the form of student debt consolidation which takes the loans and combines them into a singular, simpler to pay amount with a lower fixed interest rate.
The fact is, many a banking institutions are fully aware that students are hardly beginning their careers and will not make large salaries fresh out of college. This is why student debt consolidation loans were designed. The particular estimation behind these is that students can focus more on establishing their careers rather than troubling about how to pay off the student loans. Finally all debt must be paid off. In order for this to happen, students want to adopt discipline.
This entails prioritizing their bills and needs. That is why students should focus on maintaining credit card and some other debts to a minimum while in school and especially after they graduate. The toughest thing a student can have, besides graduating without a job, is lots of debt and high interest rates that are a result of credit card spending. This alone will give the new graduate a hard starting point in life and in truth reduces their powers to maintain with their living expenses and avoids bankruptcy, let alone receive any fun.
That is why it is very critical to gain a handle on student spending while the student is in school. This implies changing spending behavior and the needs versus wants mentality. Merely graduating will not warrant financial success or wealth. That is why it is critical to pay down the student debt while still in school. The profound debt to focus on should make up the credit card debt. For starters, try paying for everything with a cash flow budget. Try to avoid using credit unless it’s a critical emergency.
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Saturday, October 24, 2009
Monday, October 12, 2009
Does the Government Own Your Student Loan?
If you’re among the thousands of students whose student loans have been purchased by the U.S. government, you may have already gotten word. Starting July 1, the U.S. Department of Education (DOE) began notifying borrowers and their parents of the federal government’s purchase of their loans.
If you’re among the thousands of students whose student loans have been purchased by the U.S. government, you may have already gotten word. Starting July 1, the U.S. Department of Education (DOE) began notifying borrowers and their parents of the federal government’s purchase of their loans.
Currently, the federal government now owns nearly 60 percent of all student loans, and these numbers may continue to climb if the economic situation does not improve. The DOE began purchasing student loans during November 2008 in an effort to decrease the amount of private investments tied up in Stafford, GradPLUS and ParentPLUS loans made to college students. By freeing up these investments, the government hopes to be able to continue providing the same number and dollar amount that students can presently obtain.
This won’t have a huge effect on students whose loans have been purchased by the U.S. government. The main concerns borrowers will face are changes in loan incentives and the location to which loan payments should be made. Borrowers should ensure that they receive notification of changes in payment location by keeping lenders updated with their current addresses. Alternatively, borrowers can enroll in automatic payment programs that allow the loan payments to be deducted from bank accounts each month. This resolves the problem of keeping lenders updated with change of address forms.
Another possible concern is that some loans have been purchased by the federal government, while other loans may not have been purchased. In these cases, borrowers may owe payments to more than one loan servicing agency. Again, communication with the lender will help to resolve this problem.
Although many major banking institutions, such as JP MorganChase, KeyBank, and Wachovia, have arranged with the U.S. government to sell their loans, a few major lenders, including Wells Fargo, continue to service their own student loans. As a result, some borrowers will lose certain discounts, such as a decrease in the loan principle, which may have been applied after the student’s graduation. Other students may have obtained a reduced interest rate, which would no longer apply if the loan was consolidated.
Stay smart. Know the terms of your loan, and stay updated concerning how these terms will be affected by loan sales or purchases. Remain aware of who owns your loan and how this will affect loan terms and incentives. Keep your address updated with the loan servicing agency to avoid defaulting because you don’t get regular information about changes or payments due. Finally, stay tuned to http://www.degree.com the premier internet portal for online degree programs for the latest updates concerning changes in federal student loan procedures.
Source
If you’re among the thousands of students whose student loans have been purchased by the U.S. government, you may have already gotten word. Starting July 1, the U.S. Department of Education (DOE) began notifying borrowers and their parents of the federal government’s purchase of their loans.
Currently, the federal government now owns nearly 60 percent of all student loans, and these numbers may continue to climb if the economic situation does not improve. The DOE began purchasing student loans during November 2008 in an effort to decrease the amount of private investments tied up in Stafford, GradPLUS and ParentPLUS loans made to college students. By freeing up these investments, the government hopes to be able to continue providing the same number and dollar amount that students can presently obtain.
This won’t have a huge effect on students whose loans have been purchased by the U.S. government. The main concerns borrowers will face are changes in loan incentives and the location to which loan payments should be made. Borrowers should ensure that they receive notification of changes in payment location by keeping lenders updated with their current addresses. Alternatively, borrowers can enroll in automatic payment programs that allow the loan payments to be deducted from bank accounts each month. This resolves the problem of keeping lenders updated with change of address forms.
Another possible concern is that some loans have been purchased by the federal government, while other loans may not have been purchased. In these cases, borrowers may owe payments to more than one loan servicing agency. Again, communication with the lender will help to resolve this problem.
Although many major banking institutions, such as JP MorganChase, KeyBank, and Wachovia, have arranged with the U.S. government to sell their loans, a few major lenders, including Wells Fargo, continue to service their own student loans. As a result, some borrowers will lose certain discounts, such as a decrease in the loan principle, which may have been applied after the student’s graduation. Other students may have obtained a reduced interest rate, which would no longer apply if the loan was consolidated.
Stay smart. Know the terms of your loan, and stay updated concerning how these terms will be affected by loan sales or purchases. Remain aware of who owns your loan and how this will affect loan terms and incentives. Keep your address updated with the loan servicing agency to avoid defaulting because you don’t get regular information about changes or payments due. Finally, stay tuned to http://www.degree.com the premier internet portal for online degree programs for the latest updates concerning changes in federal student loan procedures.
Source
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