To most of the fresh graduates out there, it is a painful issue to pay back the loans they have taken to support their college or university studies. If you are currently paying multiple interest rates to multiple loan agencies, you should know how that feels. Have you ever imagine that you can save thousands of dollars by consolidating your student loans? In fact, you can either go for federal or private student loan consolidation.
As the name implies, federal loan consolidation is offered by the federal government. It doesn’t need credit check or co-signer (guarantor) because this loan consolidation program is protected by the federal government.
Private student loan consolidation is offered by banks, loan agencies or credit unions. And depending on the loan agencies, you might need to provide a co-signer or get your credit history check.
How they work
Both programs are meant to combine the multiple loans you have into one loan and extend your loan period so that you can enjoy lower monthly payment. For federal student loan program, you can only combine your federal loans. But for private student loan consolidation, it is possible to consolidate your student loans together with your personal loans.
Besides that, when you are going for federal student loan consolidation, your interest rate will be lock at the current low interest rate for the whole loan period. For private student loan however, your interest rate might fluctuate with the market rate. You can try to talk to the loan agency to look at the possibility of getting the lowest interest rate.
You can improve your credit score when you consolidate your student loans with both programs. This is because when you have consolidated your loans, you are being seen as servicing one single loan instead of multiple loans.
It is said that you will enjoy lower interest rate when you consolidate your student loans with federal government. However, you can negotiate with the private loan agencies to see if there is any alternative for you to get a better interest rate.
And for your information, you are allowed to consolidate once with private agency and once with federal agency. So, think properly before you sign up for any student loan consolidation program.
During these tough times more students are opting to continue their education by going to college. This is good – if you can get in- and if you can afford it.
Many a times, potential students (or parents) do not have the money to pay “cash” for college. This means the only other thing that can be done to pay for college is to take out a student loan.
Taking out loans for college is quite prevalent and safe, but, it is only safe if you know what you are doing. Here are a few things you should know before you sign on the bottom lone for a loan.
There are two types of loans – the Federal loan and Private loans. This is one instance when it is good to have a Federal involvement in something you are doing. These loans are overseen by the government and generally provide the better choice for a loan.
Again, generally speaking, government loans usually are at a lower interest rate, have less fees, better pay back options, more protection, and may offer you some things that Private loans won’t offer – like maybe a cancellation option – under certain conditions.
So the first thing you should do is get as many Federal loans that you can and then supplement the balance of what you need with Private loans.
Private loans are not regulated as much as the Federal loans. They can also be deceptive too in their ads – so beware. Here are a few things to look out for.
Government loans are hardly ever advertised like the other loans. These loan lenders may flood your mail box with ads and information or start calling once they know you have a senior in school. A Federal loan will probably never do this.
Some Private loan agencies like to use names and logos that will make you think they are a Federal loan or at least affiliated with the government – so watch out.
Some times the private loans may come with an incentive or a gift you get a loan. Again, just be ware of this.
Also, if talking with someone over the phone about a private loan don’t give them too much information. While many agencies may be reputable, there are a good number which are not and need to be avoided.
The bottom line is to stick with the Federal loans first. They are the better deal and the more trustworthy people to deal with. Now after saying that, there are many reputable Private loan agencies out there. In fact, these agencies provide a very important part in giving many the ability to go to college. Without these agencies, many dreams would never be realized.
You just need to be ware, that if you are going to get a Private loan, there are some thing you need to know and understand before you commit to some big loans for that college career.
Financial situations can go awry in the blink on an eye. And usually, when finances fall through or become less than sufficient to get you through your life’s, sadly enough, expensive trail, debt will undoubtedly follow closely behind. And depending on how poor your situation is debt can build, pile and stack in weighted, heightened amounts. So much so that before you know it, you’re standing on top of a mountain of debt. But, this isn’t saying you have to stay up there forever. And why would you anyway?
There are ways down and fixing-financial-actions you can take. The trick before doing any of the aforementioned though is to know your options, become familiarized with specific ways to get your self off that tall, unstable mountain of debt.
Show The Way, Lead Me Off This Mountain Of Debt
One way to get off any mountain of debt, yet also reach the summit of financial stability, is through using debt consolidation loan agencies. There are both reputable and dishonorable debt consolidation loan agencies out there, both of which offer their support and aid to individuals -just like yourself- who are no longer financially able to make their minimum debt repayments with ease. The seedy agencies out there run rampant and like to capitalize on individuals’ unfortunate situations. To avoid these shifty types of agencies it’s quite important to know just how debt consolidation loan agencies run, how they work and what they can do for you.
Knowing What To Expect Is First and Foremost…
Service wise, it’s important to know just how debt consolidation loan agencies operate and what they offer their customers. Usually, they will offer services such as debt consolidation loans (obviously), credit counseling, budgeting assistance, lender negotiations and payment management tips.
The process of sitting with any debt consolidation loan agency begins with them interviewing you and outlining options -particularly optimal and tailored ones- for you to choose from. At this point it would be best for you to ask about fees, specifically how many there will be, how much they are overall and how they’ll be paid. Typically, fees can be laid out as a flat rate or quoted state based on percentage values of your overall debt balance. To avoid being overcharged shop around, compare fees and ask questions – don’t be afraid to do so. It’s actually essential to do this so you don’t get scammed or taken advantage of.
Expect The Unexpected? Have Great Expectations? Or Both?
Anticipate return in what you’re investing toward a debt consolidation loan agency. This is stated simply because agencies aim to help you out, positioning you better financially by negotiating overall debt figures, the reduction of your balance, gaining a lower interest rate or even allowing room for an extension on your repayment period. And it’s certainly true that debt consolidation loan agencies are indeed immensely helpful, but be leery of agencies offering you unreasonable outcomes – precise results and a pristine credit score. The truth is that any changes made through the period under a debt consolidation loan agency will effect your credit score in a negative fashion. But, it will heal over time, pending you pay off debt and stay financially sound in your living ways. Once you’ve went through with the actions and paid back your specific agency, you’ll be in a much better position than you were.
Do expect to have your poor financial situation eased, not removed. The point of seeking assistance through a debt consolidation agency is to become more financially shrewd, able and responsible, not to omit your debt instantaneously. Do not expect to have your mountain of debt obliterated and blown away forever.
If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.
In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.
Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.
Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.
Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.
Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.
In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.