Posts Tagged ‘ Student ’

Factors To Consider When Applying For Student Loan Consolidation

Your family’s education loan, car loan and business loan when combined is stressing enough. Especially when debt repayment occurs, everything may go out of hand. So before you lose your mind as well as your family’s income read up on loan consolidation and organize your debt correctly.

Loan consolidation will merge payments that acquired of your family so that payments will be transacted in one way or one process. For example, if your older brother has applied for business loan and you have your private student loan, loan consolidation will merge these loan together that your debt repayment will be as one.

Loan consolidation will make your debt repayment easier to supervise and to organize. Very similar to refinancing a mortgage, almost all federal financing solutions such as FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Financial Assistance, NSL, HEAL, Guaranteed Student and Direct loan can be consolidated. Some financing companies offer private consolidation for private student financial assistance as well. Communications can be made at the Department of Education or the Federal Direct Consolidation Loans Information Center if you request to consolidate your federal parent or student financial assistance.

The United States Federal Direct Student Loan Program (FDLP) offers services to to consolidate that gives freedom to students to merge their Stafford Financial Assistance, PLUS financial aid loans, and Federal Perkins Loans into one. Lessened monthly repayments and a longer term for the loan are benefits when the borrowed money are consolidated. It also gain fixed amount of interest (depending on the total amount of consolidated loan as well as the length of time that the loan may exist.

When the lent money are consolidated, debtors can enjoy of selecting the terms of loan from 10 years up to 30 years. However, consolidated loan has drawbacks too. Grace periods after graduation and other possible request for special consideration will not recognized when the lent money are consolidated. By saying so, consolidation are not recommended to all kinds of debtors.

Students that are married no longer have the privilege to consolidate their loan together since July 1, 2006. Having a partner to consolidated your borrowed money will only means that both of you share responsibility for the loan. Sometimes when divorce occurs to marriage, debt repayment usually suffers. That’s why the US congress deem it necessary for the sake of everyone to nullify the provision stated in the Higher Education Reconciliation Act of 2005 that allows married students to consolidate their loan.

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2012
02/02
CATEGORY
Student Loans
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Expansion of College Aid Resources Good Is News For Students

On March 30, President Barack Obama went down to Northern Virginia Community College to sign what many in the media were calling his “health bill.” True, a giant portion of the bill revolved around the controversial insurance reform, but that wasn’t all this monumental piece of legislation was about. It also had to do with education and both traditional and online college grants and financial aid possibilities will come into play.

If anyone paid attention, the actual title of the bill Obama signed was “The Health Care and Education Reconciliation Act”. The second half of that title was grossly ignored by most media pundits, but if it goes through as planned it will have an incredibly positive impact on the future of education as a whole, including online colleges.

Admittedly, a considerable amount of the education sections of the bill have to do with elementary and secondary schools. At the same time, who can deny that if this part of the education system isn’t overhauled, the prospects of having primed students for graduate and post-graduate education becomes slim, if not none.

The key bit of legislation though revolves around student loans. Back in the day, when students applied for them, they got the money straight from the federal government. When the legislature that initially created student law systems was signed by then President Lyndon Johnson in 1965, students got their loans directly from the federal government, which also administered them.

Over time, the government felt it could cut costs by having banks administer the money for them. Over the last few years though, this plan backfired. The banks began to feel entitled to charge much higher interest rates and pocket the difference. This resulted in interest rates starting to escalate to as much as 19%, and coupled with the current economic recession, the number of defaults escalated accordingly.

One key aspect of the new Obama plan is it cuts out the banking middle men, again returning the student loan system completely back into the Board of Education’s hands. Obama expects that not only will there be less defaults because the interest rates will be lowered, but the profits generated from these loans will be plowed back into increasing the Pell Grant and related financial aid programs.

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2012
02/02
CATEGORY
Online Education
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