Student Loans?
Asked by edwardWHy does the government want college students to consolidate their studnet loans once we graduate? What is the benefit in doing this? I jsut graduated and dont know what i should do, i just remember hearing that i am supposed to consolidate my loans.. thanks
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Answered by Student Loans
Hello there, There are many reasons that the government insists that students consolidate their student laons once graduation.. For starters, the government offers this program with no fee's or penalties... Before July 1st 2006, any loans taken out by students are variable interest rates.. This means if you have say 5 loans, you have 5 seperate variable rates... Now in the past few years, student loans rates like everything else have skyrocketed! So, say you have 5 loans all with rates in the 7% range right now.. Say your payments are $300 on those 5 loans... If the rates go up to 9% like anticipated in the next 6 months, then your rates would all adjust to the 9% mark.. This also means your payments go up accordingly, which will most likely add another $200 to your monthly payment.. (depends on how much your loans are..) So for the simple fact that your rates WILL rise soon, it makes sense to consolidate into a fixed rate.. The consolidation program that the government offers gives you a FIXED rate and brings all of your loans into one loan.. This means, once ytou "would" go into repayment, instead of having 5, 6, 7, 8 etc., payemtns each month to make to different lenders, you will have ONE LOAN ONE PAYMENT and it will have a FIXED RATE AND PAYEMTN FOR THE LIFE OF THE LOAN! The government offers this program as a way to help teach college students a way to effectively manage their student debt after graduation... Its a way to cut back on bankruptcy's, and people having trouble budgeting their bills.. Ill also let you know, and this is VERY important... Anyone who consolidates their student laons within 3 months prior to graduation, the government gives a .60% RATE DISCOUNT!! This is a hugh benefit t take advantage of because it can save thousands of dollars in your pocket... Most kids wait 6 months after graduating once they have to start paying which is why the government offers this option.. I hope this helps, sorry for being so detailed... Id liek you to take a look at my yahoo 360 profile.. There is alot of helpful information here ans well as a direct link to my website if you would liek to know more about my company... 360.yahoo.com/my_profile-HlUDUhMib7M9Wlj6o6L2SfGcEYtkt9xsaQ--?cq=1 I am available at all times by email or phone if you or anyone else reading has any questions, concerns, or curiousities.. Thanks, Jason Fry Financial Advisor Student Aid Lending 1-800-964-0642 ext. 114 jasonf@StudentAidLending.com
Hello there, There are many reasons that the government insists that students consolidate their student laons once graduation.. For starters, the government offers this program with no fee's or penalties... Before July 1st 2006, any loans taken out by students are variable interest rates.. This means if you have say 5 loans, you have 5 seperate variable rates... Now in the past few years, student loans rates like everything else have skyrocketed! So, say you have 5 loans all with rates in the 7% range right now.. Say your payments are $300 on those 5 loans... If the rates go up to 9% like anticipated in the next 6 months, then your rates would all adjust to the 9% mark.. This also means your payments go up accordingly, which will most likely add another $200 to your monthly payment.. (depends on how much your loans are..) So for the simple fact that your rates WILL rise soon, it makes sense to consolidate into a fixed rate.. The consolidation program that the government offers gives you a FIXED rate and brings all of your loans into one loan.. This means, once ytou "would" go into repayment, instead of having 5, 6, 7, 8 etc., payemtns each month to make to different lenders, you will have ONE LOAN ONE PAYMENT and it will have a FIXED RATE AND PAYEMTN FOR THE LIFE OF THE LOAN! The government offers this program as a way to help teach college students a way to effectively manage their student debt after graduation... Its a way to cut back on bankruptcy's, and people having trouble budgeting their bills.. Ill also let you know, and this is VERY important... Anyone who consolidates their student laons within 3 months prior to graduation, the government gives a .60% RATE DISCOUNT!! This is a hugh benefit t take advantage of because it can save thousands of dollars in your pocket... Most kids wait 6 months after graduating once they have to start paying which is why the government offers this option.. I hope this helps, sorry for being so detailed... Id liek you to take a look at my yahoo 360 profile.. There is alot of helpful information here ans well as a direct link to my website if you would liek to know more about my company... 360.yahoo.com/my_profile-HlUDUhMib7M9Wlj6o6L2SfGcEYtkt9xsaQ--?cq=1 I am available at all times by email or phone if you or anyone else reading has any questions, concerns, or curiousities.. Thanks, Jason Fry Financial Advisor Student Aid Lending 1-800-964-0642 ext. 114 jasonf@StudentAidLending.com
