So you've worked your tail off for the last several years eating Ramen and pulling all nighters while living on your student loans that almost covered the bills, and now you've got a great job, a new life and a mountain of debt. Life next pop quizWhat do you do? Fortunately for today's education Loan borrowers there are plenty of options to help you get your new life started without having the old one hanging around your neck like an anchor. There are plenty of student loan consolidation options available for the savvy borrower, and one of them will probably fit your life.
Most people start their borrowing with a Federal Family Education Loan or FFEL. FFELs cover both subsidized and unsubsidized loans, and an FFEL consolidation loan can wrap both of a borrower's federal loans into a single manageable package. FFEL consolidation programs offer extended repayment terms and fixed rates, and in some cases even those who have been in default in the past can qualify. If you have any federal education debt an FFEL consolidation loan should be the first place you look.
Of course not everyone was fortunate enough (or thrifty enough) to have their federal loans cover all of their expenses while in school. People who needed Private loans aren't left out in the cold though. Many companies also offer consolidation packages that will let you put all of your private loans into a single payment. Private consolidation offers many of the same benefits as an FFEL consolidation, but be aware that FFEL and private loans cannot generally be consolidated into a single package. You may need to get two separate consolidation loans, one for your federal loans and another for the private ones.
PLUS loan consolidation offers the chance for parents who have borrowed to fund their child's education to get many of the same benefits as FFEL and private loan consolidation. In addition to an interest rate reduction Plus loan consolidation offers the option of extended terms to make repayment more manageable. As with any consolidation loan, extended terms also increase the total amount of the loan so borrowers need to make sure that they are making the right choice for their financial situation.
Even if none of the traditional consolidation methods work for your situation, there are still alternatives to help students get started on the right foot towards financial solvency. Some people take out second mortgages on their home and use the money to pay off all of their loans. ( An added benefit of this method is that you may be able to retain some of the tax benefits of regular consolidations) Private personal loans from family members can also help those with poor credit, and some companies offer tuition reimbursement programs which may help off set up to 100% of your education costs.
One of the newest innovations in lending is the idea of micro-financing. Peer to peer lending networks provide the same type structure as peer to peer file sharing networks. With a P2P lending network, borrowers submit their request usually backed by some type of credit check and a variety of lenders bid on it. Usually the P2P organization will service the loan, which may be funded from friends, family members, or even complete strangers.
Making the transition from school life to your career is a road with more than its share of lessons and challenges. Having to make large student loan payments on an entry level salary while trying to save cash for a professional wardrobe, deposits on housing, and other "grown-up" essentials is enough to stop that progress dead in its tracks. There are many things to consider when applying for a consolidation, but knowing that you have options available can help make your transition manageable. - 15224
Most people start their borrowing with a Federal Family Education Loan or FFEL. FFELs cover both subsidized and unsubsidized loans, and an FFEL consolidation loan can wrap both of a borrower's federal loans into a single manageable package. FFEL consolidation programs offer extended repayment terms and fixed rates, and in some cases even those who have been in default in the past can qualify. If you have any federal education debt an FFEL consolidation loan should be the first place you look.
Of course not everyone was fortunate enough (or thrifty enough) to have their federal loans cover all of their expenses while in school. People who needed Private loans aren't left out in the cold though. Many companies also offer consolidation packages that will let you put all of your private loans into a single payment. Private consolidation offers many of the same benefits as an FFEL consolidation, but be aware that FFEL and private loans cannot generally be consolidated into a single package. You may need to get two separate consolidation loans, one for your federal loans and another for the private ones.
PLUS loan consolidation offers the chance for parents who have borrowed to fund their child's education to get many of the same benefits as FFEL and private loan consolidation. In addition to an interest rate reduction Plus loan consolidation offers the option of extended terms to make repayment more manageable. As with any consolidation loan, extended terms also increase the total amount of the loan so borrowers need to make sure that they are making the right choice for their financial situation.
Even if none of the traditional consolidation methods work for your situation, there are still alternatives to help students get started on the right foot towards financial solvency. Some people take out second mortgages on their home and use the money to pay off all of their loans. ( An added benefit of this method is that you may be able to retain some of the tax benefits of regular consolidations) Private personal loans from family members can also help those with poor credit, and some companies offer tuition reimbursement programs which may help off set up to 100% of your education costs.
One of the newest innovations in lending is the idea of micro-financing. Peer to peer lending networks provide the same type structure as peer to peer file sharing networks. With a P2P lending network, borrowers submit their request usually backed by some type of credit check and a variety of lenders bid on it. Usually the P2P organization will service the loan, which may be funded from friends, family members, or even complete strangers.
Making the transition from school life to your career is a road with more than its share of lessons and challenges. Having to make large student loan payments on an entry level salary while trying to save cash for a professional wardrobe, deposits on housing, and other "grown-up" essentials is enough to stop that progress dead in its tracks. There are many things to consider when applying for a consolidation, but knowing that you have options available can help make your transition manageable. - 15224
About the Author:
Dennis Powell writes about how to refinance consolidated student loans and the consolidation of federal loan programs for students.
