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Take a Direct Approach
The Federal Student Aid’s William D. Ford Federal Direct Loan Program bundles in a consolidation loan along with the Direct Stafford Loans, William D. Ford Stafford and PLUS Loans, and Direct PLUS Loans.
Differences exist between the Federal Direct Loan Program and the Federal Family Education Loan Program. The FFELP is administered through student loan providers and lenders licensed by the feds to guarantee their loans.
However, differences such as loan limits, repayment periods and borrower incentives, further distinguish the programs.
Eligible Loans
How do you know if your loans are eligible for inclusion under the Direct Consolidation Loan? If you have one or more loans through the Federal Direct Loan program, you are qualified. In some cases your FFELP loans may be considered for a Direct Consolidation Loan if you’ve been turned down for a consolidation loan through your FFEL lender. Private loans of any kind are not eligible.
Direct Consolidation Loan Terms
The Federal Direct Loan Program was established to make more federal funds available to the students that need them most. In some cases this includes families with serious financial disadvantages. Criteria or terms of the Direct Loans allow for flexible repayment, and credit terms. They must in order for the program to work.
The Direct Consolidation Loan program terms include:
- No credit check.
- No extra fees associated with the loan.
- Borrowers are not required to have a minimum loan amount. Many private lenders that offer the FFEL consolidation loans require a minimum loan amount.
- Interest rate is fixed for the life of the loan. This change was effective July 1, 2006. The rate is determined by the weighted average of all your federal loans as of the day you apply for consolidation. That average is rounded up to the next 1/8 th percent. The government has established a ceiling of 8.25 on the rate.
- Also unlike the FFEL consolidation loan, borrowers seeking a Direct Consolidation Loan may be eligible even if one or more loans are in default.
Reasons to Consolidate
Just because it seems as though loan consolidation is the current practice doesn’t necessarily mean it’s right for you. In the long run your education will cost you a lot more than what you might have paid otherwise, without a consolidation loan. Why? A consolidation loan slashes your monthly payments by 45 to 50 percent, but in order to make that possible, it features extended repayment terms. Depending on the amount of your loan you could be looking at 30 years of payments.
If, after weighing your financial situation, you are convinced a Direct Consolidation Loan is right for you, click this -> apply via online application, phone or print off a copy and fill it out in paper form.
Ref: http://www.collegescholarships.org/consolidation/direct.htm
Why is Student Loan Consolidation Program Required
In the current situation, we can observe the outstanding pressure a student has to deal with to seek good education, from a reputed institute. The major problem that the students face is the demanding sum of money, which is required to fund their studies. In such cases, the students being unable to pay out the entire amount seek loans from different places, which may gradually mount further pressure on them. At a time, when the students get puzzled over managing various loans every month, it would be beneficial for him to take up a student loan consolidation.
Furthermore, keeping track of several loans, along with their varying rates and payment dates can be really hectic for individuals. Thus, having a student loan consolidation will help the individuals to plan out the payment in much better way; as they would have to give only one fixed payment at a certain rate, every month. This would be much easier for them, considering the fact that students are mostly in financial jinx and may not be able to manage all the payments together. On top of this, the student loan consolidation process enables you to reduce your outstanding debt to a certain degree.
Most of these student loan consolidation programs that are available, allow you certain degree of flexibility in regards of payment schemes. Being a student, it is obvious that you may not be having a standard cash flow, o back up the loans you have taken. Under such circumstances you may not be able to pay the monthly installments on time; the student loan consolidation program allows you to delay your payment for some days. This helps the students greatly, as they can have a rough estimate of the period, within which they have to pay the amount, on exceeding which there would be no fine.
To go about the process, you must consult a loan consolidator, who would plan out everything for you, from the total outstanding loan amount left to be paid, to the ones that have to be cleared at the earliest. With his help you can have a rough idea, of the state that you are at present and the best way to get out of it. Once you are trying to plan for a student loan consolidation, please make sure that you check the details correctly, so that you may not have to face any further trouble in the future.
Thus, it would be advisable for the students to get a student loan consolidation done, as it would be providing the best consolidation interest loan rate student can think of. If you are planning to consolidate loans then make sure that you look up the proper institution, from where you would be accepting the program. Try to see that it is the best consolidation loan student can think of having, in regards of feasibility, as well as the interest rates and repayment scheme. After the process is completed the student would have to worry less regarding the payment, and would be able to focus on his curriculum.
Ref: http://www.articlesbase.com/loans-articles/why-is-student-loan-consolidation-program-required-632180.html
When getting financial advice about eliminating debt or finding a loan you want to know there is a source for your needs. Getting an auto loan can be tricky if you do not have the facts on were to get the best quotes. Maybe you are in debt and need to eliminate your credit card debt and are not sure what steps you need to take.
There are Government Grants that are available to you but you need to know were to start and how to apply. We offer a great variety of information for getting a loan or getting rid of debt that can be very usful to you and your search for answers to finding the perfect fit for your situation.
If you find yourself facing a Bankruptcy then it is important to know exactly what the ins and outs are so that you can recover from bankruptcy as fast as possible and and then you can get back on the road to recovery. One of the worst results from a bankruptcy is your credit rating will suffer greatly in the short term, but you can always get your credit rating back to a higher number.
If you are looking for a Student Loan there are things that you want to be aware of before you apply. Some people do not realize that there are Government Grants that are available to you when you are attending school. The benefit to these is that you do not have to pay the grant money back.
You should always keep track and be aware of your Credit Score because this is your gateway to getting a loan. It is very important to make sure that your credit rating is always accurate and it is up to you to check on this often.
If you have found yourself in a situation were you are having problems paying your credit card bills and maybe you are finding it difficult to pay the monthly minimums then you should consider getting a consolidation loan.
It is important to know and understand the way credit card and interest payments work so that you can use a credit card effectively and this will keep you from getting way over your head into massive debt. You should also know how to save hundreds if not thousands of dollars on interest alone.
Your credit card company is in the business of making money and they like it when you are only paying your monthly minimum because they make the most money when you are in this situation. You can learn how to get away from overpaying on interest for good.
Always know that when you are seeking financial advice always look for a professional that has the experience for you to be successful
Author Source: Bryan Burbank
The Asia Research Institute of NUS invites applications from citizens
of Asian countries enrolled for a fulltime advanced degree at a
university in an Asian country (except Singapore) for consideration
for the award of Asian Graduate Student Fellowships. These
fellowships are offered to current graduate students doing their
Master’s or PhD degrees and working in the Humanities and Social
Sciences on Southeast Asian topics, and will allow the recipients to
be based at NUS for an `in residence fellowship’ for a period of
three months. The aim of the fellowship is to enable scholars to
make full use of the wide range of resources held in the libraries of
NUS and the Institute of Southeast Asian Studies. Scholars will be
expected to commence on 4 May 2009, and to make a presentation on
their work at the Singapore Graduate Forum on Southeast Asian Studies
at the end of July 2009.
Successful candidates can expect the following benefits:
1) A monthly allowance of SGD$1,750 (inclusive of housing
allowance).
2) A one time round trip travel subsidy by the most economical
and direct route on a reimbursement basis upon being accepted for the
fellowship.
3) Access to library and computer resources on campus.
Applicants are invited to e-mail/facsimile/mail their curriculum
vitae, a 2-page outline of their research proposal in English (this
may be accompanied by a longer statement in a Southeast Asian
language) to the address below by 15 November 2008. Arrangements
should also be made by which at least two letters of reference, one
of which is from your principal supervisor, are sent confidentially
to the same address by the same deadline.
The 2-page research proposal must include the following details:
1) Whether the data collection or fieldwork stage of the
research has already been completed;
2) how the fellowship will contribute to the research;
3) the types of sources to be consulted in Singapore;
4) proposed work plan during the fellowship.
You can look forward to excellent library and internet computer
facilities at NUS’ main library (http://www.lib.nus.edu.sg/), the
library at the Institute of Southeast Asian Studies (ISEAS)
(http://www.iseas.edu.sg/library.html) and the Lee Kong Chian
Reference Library at the National Library (http://www.nlb.gov.sg) to
facilitate your research for the dissertation. NUS’ main library has
2 million volumes covering all topics while ISEAS’ library has
200,000 on Southeast Asian topics, half of which are in Southeast
Asian languages.
Selvi
Asia Research Institute
NUS Bukit Timah Campus
469A Tower Block #10-01
Bukit Timah Road,
Singapore 259770
E-mail : arikk@nus.edu.sg
Fax: 65 67791428
Website: http://www.ari.nus.edu.sg/
Where To Find Student Loans For College
A college education may seem trivial to some but to not to most people who want to achieve a better status in life economically and socially. Globalization has made education very important because of the increasing competitiveness among young professionals worldwide.
A college degree has become a prerequisite in getting better work opportunities in any field of discipline. The lack of a college degree can thus put a person at a disadvantage especially when he is applying for a job and his competitors are all college graduates.
It is common knowledge that the income of people is directly proportional to the degrees they have achieved. Thus, a college graduate has better chances of getting a high paying job than a high school graduate. On the other hand, those who have masters' degrees will definitely have higher incomes than those armed with college degrees.
However, getting a college education is so expensive nowadays that only a few can afford to get one. Most families who belong to the low income group could not even send their children to college even if they want to do so. But there are solutions to those who are bent on getting a college education but who do not have the financial capacity.
Students who are eyeing a college education should already start preparing by narrowing the choice of colleges they want to attend as well as the possible expenses that would be incurred in getting that college education.
The family can start and working extra hard so they can contribute to the educational fund of their children or sibling. Planning ahead may also entail postponing or abandoning the family?s vacation plans. The aspiring college student can also take on part time work to build his college education fund.
Qualified families can also avail of student loans offered by the government or by private financial institutions. It is also best to consider the type of student loan one would be getting because there are institutions offering student loans with exorbitant interest rates.
The United States government has acknowledged the importance of getting more Americans to college so it has prepared federal grant options for incoming college students. Federal grants are usually based on the financial requirement of the student and there is no need to maintain a certain grade while in college.
To qualify for the grant, a student must be a first time college student meaning this is your first college course or degree and possesses a high school diploma or its equivalent. Citizenship is not an issue because both American citizens and non citizens who are qualified can avail of the grant.
However, a student must be able to plan on repaying his student loan to avoid being stuck on a long repayment scheme. Most college students who have not planned ahead are still paying for their loans several years after getting their college degrees.
The author is a regular contributor to Student Loans Advisor http://www.student-loans-advisor.com where more information about college scholarships and grants and loans is available.
Ref:
Should I consolidate my college loans or not?
1. Still in school, yes! Rates are low, but they're scheduled to go up. Your college loan payments will then remain as manageable as possible when you leave school. If you have graduated, or will be graduating this May or June, yes! Graduates can lock in historical low rates, and reduce their monthly payments more than half. You can lock in a rate even while still in school, and even if you have been out of school for a couple of years can get a good deal, too.
2. The newest twist in the consolidation puzzle is the "in school consolidation", affecting students who are currently enrolled and will be enrolled past the July 1 consolidation. You can consolidate your existing college loans now to secure the low rates for at least part of their student loan portfolio.
3. Consolidating could save thousands of dollars in interest payments on college loans. There are impending student loan rate changes and new interpretation of regulations by the Department of Education, also, Congress is considering ending the fixed-rate program. Experts are urging students to consolidate to relieve themselves of a higher debt load.
4. Many students and families are looking for a simple, clear answer about whether to consolidate college loans or not. The simple answer is to take some of the bite out of the debt by loan consolidation. You could live like a miser and save as much money as possible or consolidate your federal student loans now.
5. For students still in school, you have an opportunity to choose consolidation. Consolidating would put a college loan borrower into repayment status, but the student can defer payments until after graduation by making a deferment request. Consolidating today can have payments put off until graduation.
6. The federal loan program allows consolidation, which is when a borrower pools his student debts together so that only one monthly payment is necessary, rather than several. It's not just the convenience of one payment that is making consolidation so compelling. The most significant aspect of the program is that it allows a person to permanently lock in a lower interest rate on loans. These loans are backed by, or granted directly by, the federal government.
7. Rates for federal Stafford loans, the most prevalent type of student loan, as well as some other types of federal student loans are set annually based on the rate of 91-day U.S. Treasury bills at the end of May. The exact rate won't be known until the end of the month, but experts say it will be about 2 percentage points higher. (Private loans and federal loans cannot be consolidated together.)
8. For the first time, the U.S. Department of Education will allow students still in school to consolidate federally backed loans. Federal PLUS loans can also be consolidated. PLUS loans are used to help pay the cost higher education.
9. Students, regardless of enrollment, should absolutely consolidate their college loans, arranged through the student's lender. There are no fees, no credit checks, and interest rates are expected to move higher. Those are good reasons to consolidate.
10. Act quickly to put lock on current federal-aid interest rates. Graduates should act now to insulate themselves from a drastic rate change. Apply early. Do not wait until the last minute to file paperwork. Those who have already graduated or left school should not wait to investigate consolidation. In the first six months after graduation, you are in a grace period. Within that six-month window, you can lock in a low rate on Stafford loans and spread the repayment over as long as 30 years.
If you're going to consolidate, now is the best time to do it.
Georgio Heberto is dedicated to offering news, articles, and instruction on financing college education. You have a definite choice in how you finance your education and beyond. Visit http://www.atopeducation.com for more information.
Ref: http://kollegeloans.com/article.cfm/id/33665
Federal student loan consolidation
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.
Interest rates and payments
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.
History
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).
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 $2,500 million in subsidy costs.
Consolidation loan lenders
Top consolidation lenders ranked by total FY 2006 consolidation loan originations
| Lender name | # of loans | Amt of loans ($) |
| Federal Direct Student Loan Program | 1,169,110 | $19,197,268,873 |
| Sallie Mae | 866,295 | $19,841,423,841 |
| Citibank | 232,126 | $4,843,119,089 |
| Nelnet | 198,624 | $4,796,065,812 |
| NextStudent | 89,284 | $3,320,024,025 |
| JP Morgan Chase | 115,777 | $2,668,451,098 |
| Goal Financial, LLC | 111,426 | $2,494,856,673 |
| College Loan Corporation | 75,360 | $2,245,128,826 |
| AES/PHEAA | 166,730 | $2,037,618,548 |
| Student Loan Xpress | 114,790 | $1,880,997,383 |
| Wachovia Education Finance | 80,174 | $1,674,979,763 |
SOURCE: Stafford (FFEL & Direct) and PLUS (FFEL & Direct) Loans, from the National Student Loan Data System (NSLDS), US Department of Education, Fiscal Year 2006.
References
- ^ a b "GAO-06-195 Highlights, STUDENT CONSOLIDATION LOANS: Potential Effects of Making Fiscal Year 2006 Consolidation Loans Exclusively through the Direct Loan Program" (PDF). U.S. Government Accountability Office (2005-12-01).
- ^ a b "Frequently Asked Questions About Consolidation Loans". Washington State University Office of Student Financial Aid (2006-06-09).
- ^ a b c Potier, Beth (2004-02-05). "Amid the hype, opportunity lurks for students with loans.", Harvard Gazette.
- ^ "Types of Student Aid: Consolidation Loans". Student Guide 2001–2002. United States Department of Education.
Further reading
External links
Ref: http://en.wikipedia.org/wiki/Federal_student_loan_consolidation
