College Student Loans Consolidation

The summary letter shows that I owe less than I was supposed to owe. Is there a problem with my account?

2010-05-29T01:48:00.000-07:00

The reason for the difference is that most collection agencies will waive a portion of the interest and fees that have accrued on the account as a result of it being paid off with a consolidated loan. It is up to the discretion of each agency as to whether or not any fees will be waived.

Learn more about loan consolidation here...

How much are my payments going to be?

2010-05-26T01:47:00.000-07:00

This ultimately depends on the current interest rate set by the Federal Government, but with SLH you can lower your payments by up to 68%! You can use our loan calculator to calculate estimated payments after you consolidate with us.

Once the consolidation is complete you can log into your SLH account to view estimated payments, and you will also receive a disclosure statement from your final lender advising you of the amount of your monthly payments.

Know more about loan consolidation here...

Will there be a credit check?

2010-05-23T01:45:00.000-07:00

On Federally funded Stafford Loans, there is NO credit check, so people with less than perfect credit do not have to worry about being approved for a consolidation. Credit checks are only done on defaulted Parent Plus Loans.

Learn more about credit checks here...

When will my credit report be updated?

2010-05-19T01:20:00.000-07:00

Credit reports are typically updated at the end of each month. Once the consolidation is complete your credit report will now reflect any of your defaulted student loans as “Paid in Full.” It will also show a new consolidated loan in current and repayment status. You can start to rebuild your credit with your new, low monthly payments on your consolidated loan.

Know more about updating credit reports here...

Here is what our Default Federal Student Loan Help will do for you:

2010-05-12T01:18:00.000-07:00

Stop or prevent Wage Garnishment
Prevent Tax offset
Prevent Judgments
Stop the harassing telephone calls as well as demand letters to your home and work
Stop the high interest and collection charges that accrue daily
Help restore your credit
Combine all of your federal loans into one payment from one lender
You will be eligible for federal loans once the process is complete
You will be eligible for forbearance and deferments
Help educate on the advantages and disadvantages of rehabilitating their loan.

Part 2 - If you default on your student loan:

2010-05-08T01:13:00.001-07:00

Your defaulted loans will appear on your credit record, making it difficult for you to obtain an auto loan, mortgage, or even credit cards. A bad credit record can also harm your ability to find a job.
You won't receive any more federal financial aid until you repay the loan in full or make arrangements to repay what you already owe and make at least six consecutive, on-time, monthly payments. (You will also be ineligible for assistance under most federal benefit programs.)
You'll be ineligible for deferments.
Federal interest benefits will be denied.
You may not be able to renew a professional license you hold.

Once a student loan goes into "default" status the full balance of the loan becomes due immediately. It also means that other options for delaying payment, including student loan deferment and forebearance, can no longer be used.

Eventually, unpaid defaulted student loans can have long-term consequences beyond just the loan directly. For example, your credit report will take a hit. Once the loan has been forwarded for collection your wages can be garnished and your federal income tax refunds can be withheld. You also lose your elgibility for other types of federal loans.

Consolidating your defaulted loans into a new loan will show that your old defaulted loans have been paid in full. You will sign a new promissory note, and be able to start from scratch! With only one lender to deal with and one monthly bill, you will find it easier than ever to manage your debt. Also, get reinstated with Deferment and Fobearance options.

Know more what to do about defaulted loans here...

If you default on your student loan:

2010-05-06T01:12:00.000-07:00

Your loans may be turned over to a collection agency.
You'll be liable for the costs associated with collecting your loan, including court costs and attorney fees.
You can be sued for the entire amount of your loan.
Your wages may be garnished. (Federal law limits the amount that may be garnished to 15% of the borrower's take-home pay.)
Your federal and state income tax refunds may be intercepted.
The federal government may withhold part of your Social Security benefit payments. (The US Supreme Court upheld the government's ability to collect defaulted student loans in this manner without a statute of limitations in Lockhart v US (04-881, December 2005).)

Consolidation Terms

2010-04-30T01:10:00.000-07:00

Our college student loan consolidation program can allow you up to 30 years to repay your consolidation loan, depending on the balance of your existing loans. If you extend your repayment period, you will increase your interest expense because you make smaller payments over a longer period of time. However, you can always consolidate to extend your repayment term and then pay your loan off early if you so wish. We do not charge prepayment penalties in our college student loan consolidation program, so there is no penalty for premature payment. To take advantage of a 30-year repayment period, you must have a minimum of $60,000 in outstanding education debt.

Read more about the terms here...

Consolidation Fees

2010-04-26T23:51:00.000-07:00

Federal law prohibits lenders from charging application and other fees for federal student loan consolidation. Thus, you can take advantage of our federal college student loan consolidation program for free. Private student loan consolidation, on the other hand, comes with the same fees you would pay for any private loan. Such fees might include application, origination, and processing charges.

Read more about consolidation fees here...

Interest Rates

2010-04-21T23:51:00.000-07:00

The way your consolidation loan's interest rates will be calculated will depend on what type of loans you're consolidating. If you are taking out a federal consolidation loan, your interest rate will be the weighted average of the interest rates on the student loans you are consolidating. This average is then rounded up to the nearest one-eighth of a percentage. The maximum interest rate for federal consolidation loans is 8.25%. Your interest rate is then fixed for the life of the loan. The interest rates for the private college student loan consolidation program are based on LIBOR, or the London Interbank Offered Rate. Private consolidation loans often come with a fixed initial rate, followed by a variable rate that fluctuates according to LIBOR.

Learn more about interest rates here...

Why should I consolidate?

2010-04-15T23:49:00.000-07:00

A college student loan consolidation program can help you reduce monthly payments, lower interest rates, and extend your repayment time. Student loan consolidation can also reduce the hassle of student loan payments by combining all of your loans into one convenient monthly payment. You may even use student loan consolidation to shorten the repayment term of your student loans to reduce your interest expense.

Read more about loan consolidation here...

Can parents consolidate education loans?

2010-04-11T23:48:00.000-07:00

Yes, even education loans for parents are eligible for consolidation. Parents can consolidate education loans at any time, as long as the loan has already been disbursed. PLUS loans for parents are eligible for free federal loan consolidation.

Read more about consolidation of loans here...

Am I eligible for your college student loan consolidation program?

2010-04-05T23:46:00.000-07:00

You can consolidate your student loans if you are no longer enrolled in school more than half time, have loans that are in a grace or repayment period, and have never previously consolidated your loans. If you would like to take advantage of our free federal college student loan consolidation program, you will need to have federal student loans. Any loans that do not qualify for federal consolidation can still be consolidated with our private student loan consolidation program.

Know more about your eligibility for student loan consolidation here...

How do I apply for the college student loan consolidation program?

2010-03-30T23:02:00.000-07:00

You can apply for our college student loan consolidation program for free by clicking "apply now" on this site. This will then take you to a short online application. We will ask you for some basic information and will contact you within 15 minutes of receiving your application if you apply during regular business hours. Our application is no-obligation and free of charge.

Know more about student loan consolidation here...

What is student loan consolidation?

2010-03-25T23:01:00.000-07:00

When you sign up for our college student loan consolidation program, you take out a new loan to pay off your existing student loans. The consolidation loan then allows you to make just one payment to one creditor each month. Almost always, consolidation loans have interest rates and monthly payments that are substantially lower than your existing student loans.

Know more about student loan consolidation here...

Private Student Loan Consolidation

2010-03-18T23:00:00.000-07:00

Private student loan consolidation allows you to consolidate your private education loans. A private consolidation loan is much like any other private loan, as you will need to pass a credit check and pay some up-front fees and charges. If you do have the credit or the income required to qualify for our private college student loan consolidation program, you have the option of recruiting a co-signer. After you make a certain number of payments on time, you have the choice of releasing your co-signer from the agreement. Here are a few benefits of our private college student loan consolidation program:

Competitive interest rates
No prepayment penalties
No collateral required
One lower monthly payment
Earn additional interest rate reductions with borrower benefit options
Quick online application process

Federal Student Loan Consolidation

2010-03-12T22:59:00.000-08:00

f you have federal student loans, you can apply for free federal student loan consolidation. Federal loan consolidation is a government-sponsored program, but the actual loan is still provided by private lenders. The interest rates of federal consolidation loans cannot exceed the maximum set by the federal government, but there is no minimum interest rate. Interest rates on federal consolidation loans will vary from lender to lender. The following loans qualify for our federal college student loan consolidation program:

Subsidized and unsubsidized federal Stafford loans
Federal direct loans
PLUS loans and Grad PLUS loans
Federal Perkins loans
Supplemental Loans for Students (SLS)
Federally Insured Student Loans (FISL)
Health Professions Student Loans (HPSL)
Health Education Assistance Loans (HEAL)

Consolidation Step-by-Step

2010-03-05T22:58:00.000-08:00

Taking advantage of our college student loan consolidation program is as easy as following these simple steps:

Fill out our brief online application. You can fill out a free online application for our college student loan consolidation program on our site. We will only ask for basic contact information, so you do not need to know the details of your student loan portfolio.
We will contact you to complete the process. After we receive your information, one of our college student loan consolidation program representatives will contact you within 15 minutes, if you applied between 8 AM-10 PM EST. The representative will verify your information, answer any questions you may have, and explain the next step.
We handle the details of your consolidation. We will find the details of your student loans in order to pay them off with your consolidation loan. You will electronically sign the application to consolidate.
Your loans are consolidated. Once your loans are consolidated, you begin making monthly payments to your college student loan consolidation program lender.

Qualifying for Student Loan Consolidation

2010-02-28T22:57:00.000-08:00

The qualifications for our college student loan consolidation program will depend on the nature of your loans. Private student loan holders will need to meet different qualification standards from federal student loan holders, for example. In general, a good candidate for our college student loan consolidation program has graduated or is no longer enrolled in school more than half time. Your loans should also be in a repayment or grace period to be consolidated.

Read more about student loan qualification here...

Student Loan Consolidation Explained

2010-02-23T22:55:00.000-08:00

When you sign up for our college student loan consolidation program, you will take out a new loan to pay off your current student loans. You then make one monthly payment on your consolidation loan instead of dozens of payments to different creditors each month. For federal loan holders, the college student loan consolidation program is free and does not require a credit check. We also offer private student loan consolidation for those who have non-federal student loans.

Read more about student loan consolidation through this link

Student Loan Consolidation

2010-02-19T22:51:00.000-08:00

Our student loan consolidation service combines your many student loans into one easy loan. You then make one monthly payment to one creditor. For federal student loan holders, our college student loan consolidation program is free. Our college student loan consolidation program is ideal for those with many loans or high interest rates. You can even extend the repayment period of your loans with student loan consolidation. Here are a few benefits you can expect from our college student loan consolidation program:

Reduce monthly payments by as much as 60%
Save thousands by lowering interest rates
No credit checks or co-signers required for federal consolidation
Flexible repayment options
Extend repayment time to up to 30 years
No application or origination fees
Complete entire process online with electronic signature technology
Retain federal borrower benefits

College Student Loan Program

2010-02-12T22:48:00.000-08:00

If you graduated from college with debt, you are not alone. The majority of seniors now graduate with a substantial amount of debt, which forces many graduates to face a harsh financial reality once college is over. Especially for those with multiple loans, monthly student loan payments can quickly become a huge financial burden. You might find yourself struggling just to keep track of your various loan payments. If you have many student loans, you have to worry about making different payments to multiple creditors on different days of the month. In addition to the expense of student loans, this is an incredible hassle. If you find yourself in this situation, a college student loan consolidation program can make your payments manageable and affordable again.

Read more about college loan consolidation in this link

Scholarship and Fellowship Offers

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Undergraduate Scholarship
This category contains international scholarships for undergraduate and college levels. Undergraduate is the name given to students who are studying for their first degree.

Postgraduate Scholarship
Postgraduate is the level of university degree beyond the undergraduate. The postgraduate degrees include masters (MA, MBA, MEd, MSc) and doctoral degrees, or PhD. In this category you will find scholarships for international students at the postgraduate level.

Postdoctoral Fellowship
All offers for those beyond the doctoral or PhD level are grouped in this category. It may include postdoctoral positions and other academic related positions.

Nondegree
The term ‘non-degree’ is used to group or categorize scholarship offers which originally do not have any information on the degree of education required. It includes summer school opportunities, academic awards, academic competitions, etc.

Read more about scholarship and fellowship offers through this link

What are the interest rates on your loans?

2009-09-22T17:57:00.000-07:00

If you have variable interest rates on your Federal education loans, you may want to consolidate. The interest rate for a Direct Consolidation Loan is fixed for the life of the Direct Consolidation Loan. The rate is based on the weighted average interest rate of the loans being consolidated, rounded to the next nearest higher one-eighth of one percent and can not exceed 8.25 percent. Use our online calculator to find out what your weighted average interest rate would be if you consolidate with us.

Read on through this link

Too many monthly payments driving you crazy?

2009-09-18T17:54:00.000-07:00

If you send payments to more than one lender every month, and want the convenience of a single monthly payment, consolidation may be right for you. With a Direct Consolidation Loan, you will have a single lender - the U.S. Department of Education - and a single monthly payment.

Read on in this link

Are your monthly payments manageable?

2009-09-13T17:51:00.000-07:00

If you have trouble meeting your monthly payments, have exhausted your deferment and forbearance options, and/or want to avoid default, a Direct Consolidation Loan may help you. Use our online calculator to find out what your monthly payments would be under each of our repayment plans.

Read more in this site

Consolidate Student Loans

2009-09-11T22:52:00.000-07:00

Overwhelmed by student loans? We can help you save money with consolidation!

What It Is

Student loan consolidation combines all of your student loan debts into one, lower-interest loan. When you consolidate student loans, you can lock in low, fixed interest rates, reduce monthly payments, and/or lengthen the amount of time you have to repay the loan. You can consolidate student loans using federal or private consolidation loans. You can apply for both right here on our site.

Why Consolidate Student Loans

The benefits of consolidating your student loans are substantial. Almost anyone with student loans can benefit from a consolidation loan. With most student loans, your interest rates can rise considerably unless you lock in a fixed rate with a consolidation loan. Here are some of the reasons you might want to consolidate student loans:

No credit check required for federal consolidation
Apply online
Combine all student loans into one easy monthly payment
Lower your monthly payments by up to 50%
Get up to 20 years more to repay your student loans
Get a low, fixed interest rate that lasts for the life of the loan
No cosigner necessary for federal consolidation
No origination or application fees
No prepayment penalty

BestLoanPrice: Who Can Apply For Our Loans

2009-09-05T20:58:00.000-07:00

Consolidating your student loans is defiantly the way to go, but do you qualify? Do you need to apply for consolidation? Here is a handy guide to tell you if you are eligible and if you should apply.

You Should Consolidate If:

If you are having trouble paying your monthly payments because they are too high
If you are paying off multiple student loans and you are losing track of what goes to who.
If you feel your interest rate is currently way to high.

You Are Eligible If:

You have more than $7,500 in student debt
Have graduated for fallen bellow half time student status
If your loans are in grace period, repayment, deferment or forbearance
If you are a parent, you can consolidate any time.
If you have no other loans currently consolidating.
You must be a US citizen

How To Consolidate Student Loans

2009-08-30T20:56:00.000-07:00

Student loan consolidation is a repayment tool that will allow you to take all the student loans you have received over the course of your college education and combine them into one loan. When you receive a student consolidation loan the lender will pay off all your debts to your creditors. You will then only be responsible for paying one monthly payment to the company that you consolidated your student loans with.

The Student Loan Consolidation Process:

Loan #1: $4,000 at 7% interest
Loan #2: $5,000 at 9% interest
Loan #3: $5,000 at 9% interest
Loan #4: $5,000 at 10% interest

The total amount of your loan equal $19,000. Under the insurance rates of your loans you will be paying $239 a month for the next 180 months, which amounts to 15 years. If you consolidated you would take out a $19,000 loan at an 8.9% interest rate your monthly payment would be $191. That is a savings of $48. An 8.9% interest rate of a student consolidation loan is a high estimate, a lot of times you can get it in the 6.25% range. If you decide to consolidate during your grace period, the time in-between your graduation and when you start paying the loan, you can usually get an even lower interest rate. Bottom line, consolidation saves you money right now.

Read more at http://www.bestloanprice.com

Student Loans Help Most Through College

2009-08-23T20:54:00.000-07:00

Student loans are essential in affording college educations. If you don’t get a full ride and you don’t come from a well to do family, you have no other option. Since federal student loans do not always cover the entire cost of your education you may have to get a private student loan as well. All these loans can become incredibly difficult to pay off in the future. Consolidating your student loans will allow you to lower your interest rate and monthly payment, while extending your loan, and make it easier for you to make your monthly payments will still paying for the other necessities of life. Consolidating your student loans can make your life easier.

Consolidate Your Student Loans Easily!

2009-08-17T20:52:00.000-07:00

Have you or your child just graduated college? If you took out student loans to get you through college then you spent the last four years getting a world class education without paying for it. Now that your grace period is close to ending you are going to have to start paying those college bills soon. Perhaps your original bills were too high or you did not get the desired interest rate you wanted. Consolidating your student loan might be the only way you can afford to pay for that degree that is coming in the mail.

Federal Student Loans

2009-08-14T05:15:00.000-07:00

Federal student loans are the largest source of education loans. You and your family can get these loans through private financial institutions such as Sallie Mae.

Federal student loans have more favorable terms than private loans. These loans are guaranteed by the government, and the government sets their low interest rate. Nearly all students are eligible to receive federal student loan money (regardless of credit score or other financial issues), and federal student loans feature a grace period after school when no payments are due.

How much can you save each month?

2009-06-26T04:24:00.000-07:00

How much can you save each month?

If you consolidate student loans right now, you could save hundreds of dollars a month. Here's a quick chart showing how much you could save on your monthly payments:

Total Loans	Current Payment	After Consolidation	Monthly Savings
$30,000.00	$342.48	$227.22	$115.26!
$40,000.00	$456.64	$275.10	$181.53!
$50,000.00	$570.80	$343.88	$226.92!
$75,000.00	$856.20	$483.96	$372.24!
$100,000.00	$1,141.59	$645.28	$496.32!
Click Here to Consolidate Student Loans! Calculate Your Savings!

Savings shown are based on the current Stafford Loan interest rate of 6.8%; borrowers in grace periods, with student loans other than Stafford (i.e. PLUS or Perkins loans), or with Stafford Loans older than July 1, 1998, will have different interest rates.

Read more about this in this site: http://www.studentloanconsolidator.com/

EdFed: Student Loan Consolidation

2009-04-22T10:06:00.000-07:00

Loan consolidation is the channel through which you can bring all your loans under one single policy and reduce the monthly payments by increasing the duration of the loan. Consolidation has loads of benefits, some being:

Lower rate of interest
Locking in loans at a lower interest rate
Lower monthly payments
Worrying about just one loan instead of many
Longer repayment schedule

Bear in mind that we are talking specifically about student loans. There is consolidation available from other type of loans too, but at EdFed we deal with only your student loans.

The logic behind consolidation is simple. consolidation merges all your loans and bills into one single payment. It reduces your (the borrower's) monthly bill of loan repayment. In simpler terms, think of it this way: If you have to pay $100 in 5 years, you pay $20 every year (ignoring any interest component), and if you have to pay the same $100 in 10 years, you pay $10 every year. And in certain cases, the monthly payment burden gets reduced, and the loan payment period also doesn't get increased. This is what consolidation does; it reduces your monthly expenditure on loan repayment and gives you that extra cash in hand.

Read more about EdFed's student loan consolidation here...

EdFed: Seven flexible repayment plans

2009-04-17T09:56:00.001-07:00

EdFed offers seven different repayment plans for your consolidation loans, giving you extreme flexibility for your repayment. We offer the following plans:

Equal Payments: This option provides equal monthly payments over the term of the loan.

Select 2/Graduated Payments: This option allows for interest-only payments for the first 2 years of repayment. In the third year, payments increase to level installments of principal and interest payments for the remaining term of the loan.

Select 5/Graduated Payments: This option allows for interest-only payments for the first 2 years of repayment. In the third through fifth years, payments increase to include a portion of principal. In the sixth year, payments increase to level installments of principal and interest payments for the remaining term of the loan.

Income-Sensitive Payments: This option provides for payments to be adjusted annually, based on your expected total monthly gross income from employment and all other sources. Your account will initially be disbursed at the Select 2/Graduated repayment plan. After the consolidation loan is disbursed, you must contact your servicer to qualify. Once eligibility is determined, your servicer will calculate your new payment.

Read more repayment plans at Edfed.com

EdFed: Federal Loan Consolidation

2009-04-13T09:38:00.000-07:00

Federal loan consolidation allows you to consolidate your outstanding federal education loans into a single new loan, even if your loans are currently held by more than one lender and are of different loan types. By consolidating your student loans, you can significantly lower your monthly payments by lengthening the term of your loans and locking in a low fixed interest rate. Most importantly, you can save thousands of dollars during the entire repayment term.

Additional Federal Loan Consolidation Benefits:

Fixed rates as low as 6.75%

By locking in the current low rates, you can lock in a fixed rate as low as 6.75%!

Know more about this topic at Edfed.com

EdFed: America's Top Student Loan Provider

2009-04-09T09:30:00.000-07:00

EdFed is dedicated to assisting students and graduates with financing their college expenses and managing their education loans. We specialize in education lending, and we are dedicated to ensuring your loans are handled professionally while offering you money-saving benefits.

If you graduated in 2009, or if you will be graduating within the next few months, we would like to congratulate you for obtaining your hard-earned degree. Also, we would like to provide you with some very important information regarding federal student loan consolidation. You must consolidate during your grace period to avoid an interest rate increase of 0.60%. If you wait until your grace period ends, your interest rate will automatically be 0.60% higher. When you consolidate during your grace period, you will have no payments due until your grace period has ended. You have nothing to lose. There really is no reason to pay this higher rate on your federal student loans!

With student loan consolidation, you can lock in a low, fixed interest rate for the life of your loan--and there are no fees, credit checks, income verifications, or prepayment penalties. This will help you reduce your monthly payments by nearly 50% and save you thousands of dollars over the life of your loan.

read more about EdFed in this site: http://www.edfed.com/

Federal Student Loan Consolidation Int3erest Rates

2009-02-28T21:54:00.000-08:00

The rate will be a fixed rate equal to a weighted average of the interest rates on your existing loans rounded up to the nearest one-eighth of one percent.

Federal Consolidation interest rates are based on the weighted average of student loan interest rates. Federal student loans disbursed on or after July 1, 2006 have an interest rate of 6.8%. Federal student loans disbursed before July 1, 2006 will remain variable interest rate loans. These loans will re-adjust every July 1 based on the results of the 91-day Treasury Bill. Currently, interest rates for these variable loans are:

* Stafford Loans in grace: 6.62%
* Stafford Loans in repayment: 7.22%
* Stafford Loans in repayment prior to 7/1/98: 8.02%
* PLUS Loans: 8.02%
* Perkins Loans: 5%
* HEAL Loans: 4.125%
* Previous consolidations: existing consolidation rate
* Click here for updated information about consolidation loan interest rates.

Take a look at our Loan Calculator to help you figure out your new rate and monthly payment.

Please note that we cannot guarantee any interest rate due to the time it takes to process an application. We can only provide rough estimates; you should not rely on these estimates for financial planning! Why? Because consolidation takes between 30 - 60 days, and in that time period, you may be making payments, or your loan status may change. Because your interest rate is determined not only on the type of loan you have, but also on how much you owe, we can make no guarantee except to say that your interest rates will never exceed federally specified, published rates.

Read more about the interest rates here

Federal Student Loan Consolidation FAQ

2009-02-25T21:52:00.000-08:00

Federal school Loan Consolidation is a great tool that allows borrowers to merge all of their federal loans into one new loan.
What are the benefits of federal consolidation loans?

* Reduces your monthly payment up to 53%
* Simplified finances - you make only one payment each month
* Provides budget friendly repayment options
* Improves your credit rating
* Saves you money today when you need it most

Student loan consolidation allows borrowers (parents or students) to lock in today's low rates and to combine several federal student loans into one loan, simplifying repayment. Because repayment can be spread over a longer time period, your monthly payment amount will be lower.
What about none-student loan debt, can that be consolidated?

For any other debt you may have, including credit cards and personal loan debt, we offer a free debt consultation service. You can reduce your debt up to 50% and become debt free in as little as 12-48 months. Find out more about debt consultation.

Read more about Federal Student Loan Consolidation FAQ in this link

Student Loan Consolidation Benefits

2009-02-22T21:50:00.000-08:00

How big is your monthly payment?

Let's face it, life after graduation can get very expensive. With all the living expenses tied into post grad life, including housing costs, car payments, and relocation, why worry about a huge school loan payment? Student loan consolidation can reduce your monthly payment, and help you manage your budget.
Take advantage of these benefits:

* Reduce your monthly payment by as much as 53%
* No penalties for early repayment
* Improve your credit score
* Simplify your monthly bill-paying paperwork with one payment a month
* No credit check, no co-signers needed, and no fees
* Consolidation loan interest is Federal Income Tax Deductible

Read more about Student Loan Consolidation Benefits here

How Student Loan Consolidation Works - Step 4

2009-02-19T21:48:00.000-08:00

Step 4: Application Processing

Upon receiving your signed application, your loan counselor will check the application for errors. We also check to make sure it complies with all federal guidelines set forth for federal loan consolidation. This ensures that your application is completed quickly and accurately.

After your application is submitted for processing, the loan retrieval" begins. We contact your lenders for the exact amount you owe; this information is sent to us on a loan verification certificate, or LvC. This process can take up to 60 days depending on the response time from your lender(s). Once we have valid LvC's from your lender(s), we will send them a check for the balance of your student loans.

Once the check is sent to your lender(s), your loans have officially been consolidated. You will receive a new statement from us detailing when your first payment is due, and when each payment is due thereafter. Your previous lenders can take a week or two to close out your accounts, so do not be alarmed if you get a statement from us, and a statement from your old lender. This is normal.

Read more about How Student Loan Consolidation Works here

Step 2: Locate Your Student Loans & Step 3: Sign and Mail

2009-02-16T21:46:00.000-08:00

Step 2: Locate Your Student Loans

As a result of recent changes at the Department of Education, you'll need to provide your student loan information with your consolidation application. There are several ways that you can locate your student loans and our loan counselors will gladly walk you through each process.

Step 3: Sign and Mail

Once you have reviewed the promissory note, and understand the terms, you will sign and return it to us. Either by eSignature online, or by sending the paper application back in our pre-paid envelope.

Read more about How Student Loan Consolidation Works here

How Student Loan Consolidation Works - Step 1

2009-02-12T21:45:00.000-08:00

We are here to make the student loan consolidation process easy by providing information and support via the web and phone. The following step-by-step guide will help you understand how consolidation works and how it will benefit you for years to come.
Step 1: Apply for Consolidation

The first step in consolidating your student loans is applying for a consolidation loan using our free, no-obligation application form. When you apply, you'll have the choice of receiving an application and information packet via eSignature or postal mail. Your packet will contain a consolidation application, as well as information about your discounts, and details on how your interest rate is computed.

Read more about How Student Loan Consolidation Works here

Private Student Loan Consolidation Rates

2009-02-09T21:43:00.000-08:00

Private student loan consolidation interest rates are variable, based on either the LIBOR (London Interbank Offered Rate) or the Prime rate, plus a margin for borrower and/or co-signer credit.

Origination fees can range between 1% and 5% depending upon your individual credit or the credit of a co-signer. Any fees that associated with the loan are capitalized (added to the loan) typically at the time repayment begins, which increases the amount borrowed but avoids any out-of-pocket expenses at loan closing.

Read more about Private Student Loan Consolidation Rates here

Federal Consolidation Interest Rate

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Federal Consolidation interest rates are based on the weighted average of student loan interest rates. Federal Stafford loans disbursed between July 1, 2006 and June 30, 2008 have an interest rate of 6.8%*. Stafford loans disbursed after July 1, 2008 have a rate of 6.0%.

However, Federal student loans disbursed before July 1, 2006 will remain variable interest rate loans unless consolidated. These loans will re-adjust every July 1 based on the results of the 91-day Treasury Bill. The rates listed below go into effect on July 1, 2008 for variable rate loans:

3.60% - Stafford loans in grace (down from 6.62%)
4.21% - Stafford loans in repayment (down from 7.22%)
5.01% - Parent PLUS loans (down from 8.02%)

Read more about Federal Consolidation Interest Rate here

What Qualifies for Federal Student Loan Consolidation?

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Federal loan consolidation can include Federal Stafford Loan consolidation, PLUS Loan consolidation, Direct Loan consolidation as well as Perkins Loans, HEAL Loans and all Federal FFELP and Direct Loans taken to pay for your education. Private student loan consolidation is different - You will lose your federal loan benefits if you consolidate your federal loans into a private loan consolidation.

Read more about What Qualifies for Federal Student Loan Consolidation? in this link

You will be eligible to receive a Graduation Reward when:

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The student graduates from the degree program that the loan was used to fund, the graduation date is less than six years after the date of the loan's first disbursement, and the loan is not in default on the graduation date.

Upon graduation, if you have more than one participating loan, you may be eligible to receive a Graduation Reward on each loan. However, you will not receive a Graduation Reward more than once for the same loan, even if the student receives more than one degree. We may request proof of the graduation date and degree from the student or the school, in order to confirm eligibility for the Graduation Reward. If you default on your loan or consolidate or refinance your loan with another lender prior to redeeming the Graduation Reward, you will not be eligible for a Graduation Reward. We will calculate the Graduation Reward by multiplying the outstanding principal balance of your loan on the last day of the month of graduation by 2% (0.02) and rounding to the nearest cent. The outstanding principal balance used for the calculation will not include accrued and unpaid interest, which may be capitalized when your loan enters its repayment phase.

Read more conditions on this site

Federal Student Loan Consolidation Payment Relief

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One of the key benefits of consolidating your federal school loans is payment relief. By combining all of your student loans into one consolidated loan, you can lengthen your repayment term from the standard 10 years to up to 30 years, depending on the amount of your education debts. With a lower monthly payment, you'll have more money available to meet other living expenses, including car payments, housing expenses, and career-related necessities. Because there are no penalties for overpayment, you can make larger payments and reduce your repayment term when it becomes affordable. Learn more about how student loan consolidation works in this step-by-step tutorial.

Read more about Federal Student Loan Consolidation Payment Relief here

Alternative Student Loan Eligibility

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n order to qualify for a private student loan, applicants must be enrolled at least half-time at an eligible school and typically meet the following requirements:

* Must be a U.S. citizen or permanent resident
* You and your cosigner must pass a credit check

Apply Online for an Alternative Student Loan
What is Considered Good Credit?

It is recommended that you review your credit report before you apply for an alternative student loan. Creditors look at Personal data such as employment history, a summary of credit history, details of any accounts turned over to a credit agency, and your current FICO score.

A FICO score is a standard credit scoring method that determines the likelihood that consumers will pay their bills. Typically, a FICO score ranging from 680-700 is considered fair, and anything over 700 is considered good. While your FICO score is not the only deciding factor when applying for an alternative student loan, it does play a major part in the approval process.

Read more about the Eligibility on Alternative Student Loans here

Federal Student Loan Consolidation

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Federal student loan consolidation is a fixed-rate refinancing program that combines all of your existing federal student loans into one new loan. Consolidation is a great tool for managing your finances - providing immediate payment relief and long term benefits. With our fast and convenient eSignature, your application will be complete in just a few minutes.

* Cut your monthly student loan payment by as much as 50%
* Simplify your finances with one monthly payment
* Improve your credit rating
* No credit checks, fees, or application charges
* Reduce your interest rate 0.6% by consolidating during your grace period

Read more about Federal Student Loans in this site

Alternative Student Loan Benefits

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With the cost of college on the rise, and the limited availability of federal aid, affording higher education can be challenging.

Alternative student loans are a key tool in the financial aid toolbox, offering benefits that exceed other forms of aid.

* 2% Graduation Reward based on your outstanding principal balance at the time of repayment1
* Lower your interest rate by 0.25% with automatic checking account withdrawal

Coverage and Versatility

Alternative student loans are a handy form of financial aid that can be used to cover expenses not met by federal financial aid. In addition to tuition and room and board, alternative student loans can be used to cover virtually any school related expense:

* Transportation and housing expenses
* Books, supplies, Lab fees and computers

Read more on Alternative Student Loan Benefits here.

Alternative Student Loans - Loan Repayment

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You have three options including deferment, repayment of interest only or interest and principle.

Full Deferral: No principal or interest payments due while enrolled in school (up to four consecutive years). Payment of principal and interest will begin 6 months either after graduation or if no longer enrolled at least half time. Interest will continue to accrue during the deferment period and will be capitalized (added to the loan balance) at the time of repayment.

Interest Only: Pay only accrued interest while enrolled in school (up to four consecutive years). Payment of principal and interest will begin either 45 days after graduation or withdrawal from school.

Immediate Repayment: Payment of principal and interest will begin 45 days after loan is disbursed.

Read more on Load Repayment here

Alternative Student Loan Interest Rates

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The Interest rate is a combination of the Prime rate plus a margin. The rate ranges from Prime (currently 4.0%) minus 0.50% to Prime plus 4.75%. The rate will fluctuate as the Prime rate changes every three months.

The Prime rate is a "reference or base rate" that banks use to set the price or interest rate on many of their commercial loans and some of their consumer loan products.
Loan Fee's

There are no upfront, origination, guarantor, or prepayment fees for the Alternative student loan.

Borrowers can receive a 0.25% repayment interest rate credit when payments are set up for automatic debit from a checking or bank account. This can translate into significant savings over the course of repayment.

Read more on Alternative Loan Interest Rates here.

Alternative Student Loan Eligibility

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Frequently Asked Questions About Alternative Loans

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Are there any fees?

There are no origination fees, no guarantor fees, and no prepayment fees associated with this loan.
What are the interest rates?

Interest rates will be based on you and your cosigner's credit history and are generally stated as an index, such as Prime or LIBOR, plus a margin.
Is the interest tax deductible?

Interest on student loans may be tax deductible. Please consult your tax advisor or visit irs.gov for more information.
How soon will I receive my funds?

Alternative student loan funds are usually disbursed within 14 days of receiving all necessary paperwork.
Who offers alternative student loans?

Banks, private lenders and other financial institutions offer alternative student loans.
How long are repayment terms for alternative student loans in general?

Repayment terms typically range from 15-25 years.

Read more on Frequently Asked Questions in this link

Frequently Asked Questions About Alternative Loans

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What is an alternative student loan?
Unlike Federal Student Loans, alternative student loans or private student loans are specialized education loans based on your credit history and income and should only be considered after all federal loans, grants and scholarships have been exhausted. Lenders typically give better terms for better credit history.

What can alternative student loans be used for?
Alternative student loans can be used for education-related expenses including such things as tuition, books, transportation and room and board.

Who can apply for an alternative student loan?
The student must apply for the loan. Since many students do not have extensive credit history, they will need a creditworthy cosigner to apply for this loan.

Are there application deadlines?
No. You may apply for an alternative student loan at any time.

What is the application process?
You will need to submit your application online. Once you determine the amount you want to borrow, you will need your Social Security Number, driver's license, cosigner information, and two additional references ready. You and your cosigner's credit will be checked. You can then check your status online at any time.

More Frequently Asked Questions on this link

What should I look for in an alternative student loan?

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Interest rates and fees can vary significantly between lenders. Many lenders also offer borrower benefits that can reduce the principal or interest on an alternative student loan. Be sure to look carefully at the terms and conditions when applying for a loan.

* The legal age for entering into contracts is 18 years of age in every state except Alabama and Nebraska (19 years old), and Mississippi and Puerto Rico (21 years old).

You will be eligible to receive a Graduation Reward when:

* The student graduates from the degree program that the loan was used to fund, and;
* The graduation date is less than six years after the date of the loan's first disbursement, and;
* The loan is not in default on the graduation date

Read more on Alternative Student Loans on this site

Alternative Student Loans

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The rising cost of college tuition, together with limited government financial aid, has created a widening gap between the cost of college and your ability to afford it.

Alternative student loans fill the 'gap' allowing you to borrow the difference between Federal financial aid and the true cost of an education.

You can borrower up to 100% of your education costs, and pay for tuition, books, supplies, housing and more.

Alternative Student Loan Benefits
No upfront, origination, guarantor, or prepayment fees
Defer payments while in school and for a six-month grace period after graduation
Exclusive 2% graduation reward based on your outstanding principal balance 1
Lower your interest rate by 0.25% for auto-debit repayment
Rates as low as Prime minus 0.50%, based on credit evaluation

Read more about Alternative Student Loans on this site.

History of Student Loan Consolidation

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The Federal Loan Consolidation Program was created in 1986. In 1998, the United States Congress changed the interest rate to the aforementioned fixed rate weighted mean, effective February 1, 1999. Consolidation loans taken out before that date had a variable interest rate, determined by the individual FDLP loan origination center (e.g., in the case of a university, that university) or FFELP lender (e.g., a third party bank).^[3]^[4]

In 2005, the Government Accountability Office considered consolidating consolidation loans so that they were exclusively managed through the FDLP. Based on several assumptions about future variations in interest rates, the loan volume, the percentage of defaulters, cost estimates from the United States Department of Education, it concluded that while doing so would incur an additional cost of $46 million, caused by the higher administrative costs of the FDLP compared to the FFELP, this would be offset by a $3,100 million saving comprised in part of avoiding $2,500 million in subsidy costs

from Wikipedia

Interest rates and payments

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Consolidation loans have longer terms than other loans. Debtors can choose terms of 10–30 years. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans. The fixed interest rate is calculated as the weighted average of the interest rates of the loans being consolidated, assigning relative weights according to the amounts borrowed, rounded up to the nearest 0.125%, and capped at 8.25%. Some features of the original consolidated loans, such as postgraduation grace periods and special forgiveness circumstances, are not carried over into the consolidation loan, and consolidation loans are not universally suitable for all debtors.

from Wikipedia

Federal student loan consolidation

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In the United States both the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP) include consolidation loans that allow students to consolidate Stafford Loans, PLUS Loans, and Federal Perkins Loans into one single debt. This results in reduced monthly repayments and a longer term for the loan. Unlike the other loans, consolidation loans have a fixed interest rate for the life of the loan.

from Wikipedia

JP Morgan and Chase

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JPMorgan Chase & Co. (NYSE: JPM) is one of the oldest financial services firms in the world. The company, headquartered in New York City, is a leader in investment banking, financial services, asset and wealth management and private equity. With assets of $1.6 trillion, JPMorgan Chase is currently the third largest banking institution in the United States,^[3] behind Bank of America and Citigroup. The hedge fund unit of JPMorgan Chase is the largest hedge fund in the United States with $34 billion in assets as of 2007.^[4] Formed in 2000 when Chase Manhattan Corporation acquired J.P. Morgan & Co., the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and governmental clients.

In 2004, the company merged with Bank One Corp., bringing on board CEO Jamie Dimon as president and COO and designating him as CEO William B. Harrison, Jr.'s successor. Dimon's pay was pegged at 90% of Harrison's. Dimon quickly made his influence felt by embarking on a cost-cutting strategy and replaced former JPMorgan Chase executives in key positions with Bank One executives -- many of whom were with Dimon at Citigroup. Dimon became CEO in January 2006 and Chairman in December 2006.

The Chase brand named is used for credit card services in the United States and Canada and the bank's retail banking activities in the United States. The JPMorgan brand is used by the Investment Bank as well as the Wealth & Asset Management Group's partially merged Private Bank and Personal Client Services divisions. Fiduciary activity within W&A is done under the aegis of JPMorgan Chase Bank, N.A. -- the actual trustee. The newly acquired Bear Stearns private client group is expected to operate under the name "Bear Stearns Wealth Management, a JPMorgan Company" within the Wealth & Asset Management structure.

Know more about JP Morgan here...

Interest Rates and Payments accdg to Wiki

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History of Loan Consolidation

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Know more about history of loan consolidation here...

Need HELP?

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Cut payments on your private student loans by up to 45%*

With H.E.L.P.’s no-hassle online application, you can get on the fast track to affordable payments, low rates, and one easy-to-manage consolidated loan for all your eligible private student loans.

There are NO application fees, and over 40 percent of our customers are approved without a co-signer.†

Just complete the simple four-step online application, and you could be on your way to lower monthly payments.

Consolidation is student loan repayment made easy.

$0 application fees
Fast and easy online application
Over 40% approved without a co-signer†
Cut your student loan payments by up to 45%*
Make low, interest-only payments‡
Get up to 30 years to repay
1 easy monthly payment
No prepayment penalties.

Need help on loans? Click on this link

Is your college debt out of control?

2008-09-21T04:53:00.000-07:00

Is your college debt out of control?

Are you worried about making your payments?

Consolidation is the solution!

SBS is your student loan consolidation center, enabling you to:

Cut your interest rates by 1.25%
Lower your monthly payments by 50%
Defer your payments for up to 3 years
Bundle all your loans into one easy-to-manage loan

With no credit checks, co-signers, fees or prepayment penalties!

Know more about student benefits on this site

Student Financial Advisors LLC

2008-09-16T04:56:00.000-07:00

Today’s market is filled with numerous consolidation companies that are probably flooding you daily with e-mails and phone calls. So among these, how do you decide which is the best for you?

First and foremost, it is critical that you are familiar with how consolidation works.

Basically, your consolidated interest rate is calculated by taking the weighted average of all student loans interest rates, rounded up to the nearest 1/8th of a percent. Thus, in order to maximize your benefits, your decision will essentially boil down to comparing two key features between companies: (1) the available borrower benefits that can further reduce your interest rate and (2) quality customer service.

Why should you consider Student Financial Advisors? Simply put, we stand apart from other companies not only through our exceptional ability to provide you with the lowest possible interest rate, but also in our vision of customer service. Where else can you receive borrower benefits that would see your current low interest rate drop even further by up 1.25%?

Our service aim is simple: To take whatever steps necessary to ensure you receive the greatest value possible, and to provide you with all the relevant information you'll need to help you make a wise and educated decision that fulfills your wishes. We assign each borrower a qualified personal loan counselor, who is accessible by phone, online, or via email, and who will help you throughout application process, and gladly answer any questions you may have. Remember, consolidation on its own is a wise and invaluable decision, regardless of the company you choose. Even so, by choosing Student Financial Advisors you will gain the added benefit of peace of mind, knowing you are getting an excellent rate and outstanding customer service.

http://www.studentfinancialadvisors.com/services.htm

Determining Your Eligibility

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To receive federal student aid, you must meet the following requirements:

Demonstrate financial need (for need-based programs only).
Have a high school diploma or General Education Development (GED) certificate, or pass a test approved by the U.S. Department of Education (ED).
Have a valid Social Security number (unless you are from the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau).
Be a U.S. citizen or an eligible noncitizen.
Be enrolled in an eligible associate, bachelor, or graduate degree program.
Certify that you will use federal student aid only for educational purposes.
Certify that you are not in default on a federal student loan and that you do not owe money on a federal student grant.
Maintain satisfactory academic progress while in school.
Comply with the Selective Service registration, if required.

If you've been convicted under federal or state law of selling or possessing illegal drugs, you may not be able to receive federal student aid.

Incarcerated students are generally only eligible for a Pell Grant if they are not incarcerated in a federal or state penal institution.

Know more about student loan eligibility on sallimae.com

Repayment Plans

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Repayment Plans

Consolidation loans provide access to several alternate repayment plans besides standard ten-year repayment. These include extended repayment, graduated repayment, income contingent repayment (Direct Loans only) and income sensitive repayment (FFEL only). If you do not specify the repayment terms, you will receive standard ten-year repayment.

Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid over the lifetime of the loan is increased.

In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease.

You do not need to pick an alternate repayment plan. We recommend sticking with standard ten-year repayment, because it will save you money. The alternate repayment plans may have lower monthly payments, but this increases the term of the loan and the total interest paid over the lifetime of the loan. See our caveat about extended repayment below.

Repayment on a consolidation loan will begin within 60 days of disbursement of the loan, unless the borrower qualifies for an deferment or forbearance.

Federal education loans, including consolidation loans, do not have a prepayment penalty. So you can pay off all or part of your federal education loans without incurring a penalty. If you want to take advantage of this, be sure to include a letter with the extra payment indicating that it should be applied to reducing your principal. Otherwise, the lender may treat it as an advance payment of the next month's monthly payment.

Tools for Evaluating Consolidation Options

FinAid's Loan Consolidation Calculator can help you understand the tradeoffs of consolidating your loans. It compares the reduction in the monthly loan payment with the increase in the total interest paid over the lifetime of the loan. It also shows you the interest rate on your consolidation loan.

Despite the switch to fixed interest rates on Stafford and PLUS loans eliminating a key financial incentive to consolidate, there are still several reasons to consolidate your education loans. These include having a single monthly payment, access to alternate repayment plans, the PLUS loan interest rate loophole, and the ability to reset the 3-year clock on deferments and forbearances. But consolidation can cut short the grace period, although the grace period loophole can work around this problem. It is best to avoid consolidating Perkins loans, because you lose several valuable benefits. Beware of extending the term of your loan, as this can increase the total interest paid over the lifetime of the loan; you can stick with standard ten-year repayment.

Before consolidating, always evaluate the benefits provided by the current holder of your loans. The loan discounts offered by originating lenders tend to be superior to those offered by consolidating lenders, since consolidation loans have tighter margins. Also, if you received a fee waiver or rebate from the originating lender, you may have to repay that discount if you consolidate with another lender. It may be possible to get some of the benefits of alternate repayment plans without consolidating, such as extended/graduated repayment with a loan term of up to 25 years and a single monthly payment, if you have more than $30,000 in federal education loan debt accumulated since October 7, 1998 with the lender. (This is due to a little known provision of the Higher Education Act, in section 428(b)(9)(A)(iv), and the regulations at 34 CFR 682.209(a)(6)(ix).)

You can change the repayment schedule on your loan once per year. So consider starting off with standard ten-year repayment on your consolidation loan. You are not required to start off with extended repayment. If you find it difficult to afford the payments, you can always switch to extended repayment later.

More on student consolidation on finaid.org

No Cost to Consolidate

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No Cost to Consolidate

Aside from a slight increase in the interest rate on the consolidation loan, there is no cost to consolidate your loans. There are no fees to consolidate.

Under no circumstances pay a fee in advance to get a federal education loan or consolidate your federal education loans. There are no fees to consolidate your loans. While other federal education loans, such as the Stafford and PLUS loans, may charge some fees, the fees are always deducted from the disbursement check. There is never an up front fee. If someone wants you to pay an up front fee, chances are that it is an example of an advance fee loan scam.

Who Can Consolidate

Both student and parent borrowers can consolidate their education loans. (Students and parents cannot combine their loans through consolidation, since only loans from the same borrower can be consolidated. But they can consolidate their loans separately.)

Married students are no longer able to consolidate their loans together. This provision was repealed effective July 1, 2006. When married students consolidated their loans together, each spouse became responsible for the full amount of the loan, and the loans could not be separated if the couple got divorced. To avoid such problems in the future, Congress decided to repeal this provision as part of the Higher Education Reconciliation Act of 2005.

Students can only consolidate their education loans during the grace period or after the loans enter repayment. (Loans that are in default but with satisfactory repayment arrangements may also be consolidated.) Students can no longer consolidate while they are still in school. (The early repayment status loophole and the ability of Direct Loan borrowers to consolidate during the in-school period was repealed as part of the Higher Education Reconciliation Act of 2005, effective July 1, 2006.)

Parents, however, can consolidate PLUS loans at any time.

You Can Consolidate with Any Lender

Students and parents can consolidate their loans with any lender, even if all of their loans are with a single lender. (The single holder rule was repealed on June 15, 2006, as part of the Emergency Supplemental Appropriations Act of 2006. Borrowers no longer need to exploit the single holder rule loopholes in order to consolidate with any lender.) Direct Loans can also be consolidated with any lender. This allows you to shop around for a lender that offers a lower rate or better discounts.

Most lenders require a minimum balance before they will consolidate your loans. For example, many lenders will only offer consolidation loans for borrowers with loan balances of at least $7,500. A few lenders will offer consolidation loans for balances of $5,000 or more, and the Federal Direct Consolidation Loan program has no minimum balance for consolidation loans. (Lenders may not discriminate against borrowers who seek consolidation loans on the basis of number/type of student loans, type/category of educational institution, the interest rate on the loans, or the type of repayment schedule sought by the borrower. Lenders are, however, able to discriminate on the basis of the amount of the loans being consolidated, so lenders can set a minimum balance on the loans.)

Which Loans Can be Consolidated?

Any federal education loan can be consolidated. You can even consolidate a single loan. There are, however, a few restrictions on consolidating a consolidation loan.

You can consolidate a consolidation loan only once. In order to reconsolidate an existing consolidation loan, you must add loans that were not previously consolidated to the consolidation loan. You can also consolidate two consolidation loans together. But you cannot consolidate a single consolidation loan by itself. These restrictions have been in effect since early 2006.

Note that when you reconsolidate a consolidation loan, it does not relock the rates on the consolidation loan. The consolidation loan is treated as a fixed rate loan within the weighted average interest rate formula used to calculate the interest rate on the new consolidation loan. Consolidation does not pierce the veil on previous consolidations.

The new restrictions on consolidating a consolidation loan limit your ability to use consolidation to switch lenders. Generally, you will consolidate your loans once, toward the end of the grace period or after the loans enter repayment, and then be locked into that lender for the lifetime of the loan. If you want to preserve your ability to use consolidation in the future to switch lenders, you should exclude one of your loans from the consolidation.

More on student loan consolidation on finaid.org

Finaid.org

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Consolidation Loans combine several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. It is very similar to refinancing a mortgage. Consolidation loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans. Some lenders offer private consolidation loans for private education loans as well.

A separate page provides a comparison chart of consolidation loan discounts.

Interest Rates

The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.

For example, suppose a student has just Stafford Loans originated on or after July 1, 2006. These loans have a fixed interest rate of 6.8%. When they are consolidated by themselves, the consolidation loan will have an interest rate of 6 and 7/8ths of a percent, or 6.875%. So the interest rate increases only slightly.

If the borrower has a mix of loans with different interest rates, the weighted average will be somewhere in between. For example, if the borrower has $5,000 of Perkins Loans (at 5.0%) and $10,000 of Stafford Loans (at 6.8%), the weighted average is


   $5,000 * 5.0% + $10,000 * 6.8%
   ------------------------------ = 6.2%
    $5,000 + $10,000

This weighted average, 6.2%, is then rounded up to the nearest 1/8th of a percent, yielding a consolidation loan interest rate of 6.25%.

Note that the weighted average does not fundamentally alter the underlying cost of the loan. It preserves the cost structure by including each interest rate to the extent that it applies to part of the overall loan balance. For example, the consolidation loan in the previous paragraph says that of the $15,000 consolidation loan balance, $5,000 will be at 5.0% and $10,000 at 6.8%, yielding an equivalent interest rate of 6.2%.

If you are consolidating loans with different interest rates, the weighted average interest rate will always be in between. Don't be fooled if someone tries to suggest that this will save you money by getting you a lower interest rate. The interest rate may be lower than the highest of your interest rates, but it is also higher than the lowest of your interest rates. More importantly, the amount of interest you pay over the lifetime of the loan will be about the same.

(For the mathematically inclined, there is a slight difference due to the different shapes of amortization curves at each interest rate. In the example given above on a 10 year term, $10,000 at 6.8% has a monthly payment of $115.08 and total interest paid of $3,809.66, $5,000 at 5.0% has a monthly payment of $53.03 and total interest paid of $1,364.03. If you add these, you obtain a total monthly payment of $168.11 and a total interest paid of $5,173.69. Using the weighted average, $15,000 at 6.2% has a monthly payment of $168.04 and a total interest paid of $5,165.01. So using a weighted average yields a very small reduction in the monthly payment (in this case, 7 cents) and in the total interest paid ($8.68) due to a kind of triangle law. Of course, when you consolidate the interest rate is rounded up to the nearest 1/8th of a point, so $15,000 at 6.25% has monthly payments of $168.42 and total interest of $5,210.42, yielding a slight increase. So you pay a tiny bit of a premium for consolidation, due to the rounding up of the interest rate.

The PLUS loan interest rate loophole can reduce the interest rate on 8.5% fixed rate PLUS loans by 0.25% through consolidation.

If you were deferring the interest on an unsubsidized Stafford Loan by capitalizing it, most lenders will add the capitalized interest to principal when you consolidate. (Lenders can capitalize interest at most quarterly, but most capitalize it once when the loans enter repayment or at other loan status changes.)

Interesting topic on student loan consolidation on finaid.org

Recent Grads - Maximize Your Savings & Maintain Your Grace Period

2008-08-15T04:37:00.000-07:00

Recent Grads - Maximize Your Savings & Maintain Your Grace Period

If you recently graduated and are still in your grace period (i.e. you have not started repaying your loans), you may be eligible to get up to an additional 0.60% interest rate reduction for the life of your loans. Don't delay - this special rate reduction could save you thousands of dollars. You can also request to maintain your grace period while locking in the lower rate. Call today to discuss your options.

Chase Consolidation Program can do this for you... just click on this link to know more

Consolidate Your Student Loans Now

2008-08-09T04:36:00.000-07:00

Consolidate Your Student Loans Now

The Student Loan Consolidation Program enables anyone with more than $20,000 in outstanding Federal student loans (including PLUS loans) to reduce monthly student loan repayments and lock in a low fixed interest rate.

Chase Consolidation program does this on this link

Student Loans

2008-08-02T04:35:00.000-07:00

Student Loans

When free aid isn’t enough to pay for college, it’s time to take advantage of the Federal Student Loan Program.

Student loans are low-interest, federally guaranteed loans, most of which don’t have to be repaid until after graduation. The amount and type of student loans for which you’re eligible will be outlined in your Student Aid Report—the form that’s generated by the Department of Education in response to your Free Application for Federal Student Aid (FAFSA)—and could include:

Federal Stafford Loans
Student loans, such as the Federal Stafford Loan, are taken out in the student’s name with no collateral and no credit checks.

Federal Parent PLUS Loans
If student loan aid doesn’t fill the gap, your parents could be eligible for a Federal Parent Loan for Undergraduate Students (PLUS). Under this program, creditworthy parents can borrow up to 100% of the total cost of education for dependent children, less other aid awarded.

Private Loans

Unsecured, credit-based loans available to undergraduate, graduate and continuing education students. If you don’t qualify for a private loan, your parent or guardian may co-sign.

Know more about student loans at http://www.nextstudent.com/college-students/student-loans.asp

NextStudent Private Student Loans

2008-07-28T04:32:00.000-07:00

Available now! Cash for college.

Get money for college. With a NextStudent Private Loan, undergraduate, graduate, and continuing education students can cover higher education expenses up to the Total Cost of Education. Pay for up to 100% of your undergraduate or graduate expenses from $2,500 up to a lifetime aggregate maximum of $250,000.

Get it when you want it.

Apply for a NextStudent Private Loan at the beginning of the school year, in the middle of the term or near the end. It’s up to you. There are no application deadlines. You can apply now and get a fast preliminary approval.

Why choose a NextStudent Private Loan?

Simple. With a NextStudent Private Student Loan, you get everything you need.

No FAFSA required
Competitive interest rates and fees
12-month grace period after graduation^‡
FAST preapproval
Funds are payable to you, not your school^§
Disbursements as fast as 48 hours from final approval
Up to a 0.5% discount for on-time, automatic payments^†
When you apply with a creditworthy co-signer you may increase your chances of approval and of qualifying for lower interest rates and/or loan fees

Want to know more about nextstudent loans? Click on this link

Private Student Loan Consolidation

2008-07-22T04:26:00.000-07:00

Private Student Loan Consolidation

A private consolidation loan from Student Loan Consolidator can cut your monthly loan payments nearly in half by combining all your private student debt into one easy to manage loan.

Lower your monthly payment amount as much as 45% in the first year*
A 0.25% interest rate reduction for automatic checking account withdrawal
No application fees, No prepayment penalties
Conditional pre-approval decision within minutes online or by phone

Get The Lowest Rate Possible - Apply With A Co-Signer

Applying with a qualified co-signer can greatly increase your chances for approval. A co-signer with great credit could help you get a better interest rate. And with our co-signer release program, you can remove the co-signer after 48 on-time payments.

Know more about consolidation of student loans on studentloanconsolidation.com

Federal Student Loan Consolidation

2008-07-18T04:24:00.000-07:00

Federal Student Loan Consolidation

Cut your monthly student loan payment by as much as 50%
Simplify your finances with one monthly payment
Improve your credit rating
No credit checks, fees, or application charges
Reduce your interest rate 0.6% by consolidating during your grace period

Federal Student Loan Consolidation Payment Relief

Consolidating with Student loan Consolidator

Get one-on-one personalized customer service. Our loan counselors will educate you on the benefits of federal student loan consolidation and help you determine if consolidating is the right choice. We will explain the consolidation process and the repayment options that are available to you.

What Qualifies for Federal Student Loan Consolidation?

Know more about this on studentloanconsolidator.com

http://www.loanconsolidation.ed.gov/index.shtml

2008-07-11T04:20:00.000-07:00

The Higher Education Act (HEA) provides for a loan consolidation program under both the Federal Family Education Loan (FFEL) Programs and the Direct Loan Program. Under these programs, a borrower’s loans are paid off and a new consolidation loan is created. These programs simplify loan repayment by combining several types of Federal education loans (that may have different terms and repayment schedules or may have been made by different lenders) into one new loan. The interest rate may be lower than on one or more of the underlying loans. In addition, the monthly payment amount on a consolidation loan is usually lower and the amount of time to repay may be extended beyond what was available in the separate loan programs. These features should result in more manageable debt and should make borrowers less prone to default.

Details on loan consolidation can be found on this link