Eliminating Debt Early With Private Student Loan Consolidation
Many recent graduates are finding it harder and harder to stretch new paychecks. Graduation may be a milestone in itself, but alongside a college diploma are the endless monthly bills. Living on one’s own has never been easy. Private student loan consolidation is often used to lower monthly payments and improve credit ratings.
Accumulating Debts
Often, the accumulation of other debts is to blame for such a sorry state of affairs after graduation. Take the case of 25-year-old Tamika Gambrel, who has a $60,000 a year job but still finds it difficult to make ends meet. She has to pay $840 for the apartment, $280 for the car note and a hefty $24,000 credit card debt that came from her college days. She speaks frankly about her debts:
“After four years, I walked away owing only $28,000 in loans. Considering that tuition and room and board alone at Colby was $35,000 a year, I think I did alright.”
Not everyone could put up such a brave face in the face of debt. Some just decide to file for bankruptcy, instead of getting a private student loan consolidation.
Fees Not Letting Up
According to the College Board:
“The cost of attending a public, four-year college or university in the 2007-08 school year–including tuition, fees, and room and board–was $12,796, up 35% over the past five years; for private schools, the cost was a hefty $30,367.”
These figures are by no means fixed. As we all know, tuition fees and other related fees increase and decrease depending on inflation and other economic forces. But people still want to borrow money for their college days, because indeed it’s a chance to get a better shot at life. Private student loan consolidation becomes a chance to get better rates in the end.
Know Your Debts First
To “retire” your student loans faster, you have to know your loans. Log on to www.nslds.ed.gov (National Student Loan System) to read about the specific details of different student loans. Check the status of your loans, as well as the variable interest rates and the principal. Make sure too that you obtain the required personal identification password (PIN). This can be obtained from the Department of Education. Log on to www.pin.ed.gov for more details.
Another important thing to remember is that federal loans and private loans are different. Federal loans have caps on their interest rates while private loans do not. Often, private loans are costlier. And another thing: federal loans and private loans cannot be consolidated by one large loan. They must be consolidated separately. And again, federally subsidized loans have the government backing it up (Uncle Sam pays the interest rates while you’re in school).
Make sure that you only go to attractive private student loan consolidation deals. The case of Gambrel was actually good: she had been able to get consolidation at a 2.87% interest rate. Gambrel acknowledges: “I got very lucky. At the time I graduated, jobs weren’t plentiful, but student loan consolidation programs were very, very attractive.” This just goes to show that careful financial planning can lead to beneficial results.
Watch the video related to private student loan
This was an idea my friends had for that Sunny FX television pilot competition on myspace.com a month ago. We didn’t read the fine print before sending it in and they had a clause in the contract stating “no minors drinking or doing drugs.” Needless to say a part of it sort of breaks the rules….
Help answer the question about private student loan
Is it possible to get a private student loan without a credit history or a co-signer?I currently have no credit history, and no available co-signer for a private student loan. I have exhausted my availability of government sponsered Stafford loans and Pell grants. I need a private loan in the amount of around 2000 dollars to supplement the remainder of my tuition that will be paid out-of-pocket through working on nights and weekends in two jobs.
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private student loan consolidation | Admin August 21, 2009
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By irishman1, August 21, 2009 @ 2:52 am
Wells Fargo might be the only one worthwhile these days. Look for ones that have little or no origination fees and have reductions if the money you owe is periodically auto-deposited.
By xXwhygodwhyXx, August 21, 2009 @ 3:06 am
omg lol at 3:42
By demossmd, August 21, 2009 @ 3:58 am
If you have facebook, there is a group with 200+ thousand members called: “Cancel Student Loan Debt to Stimulate the Economy”
There is also a petition which you can find there.
By wrestlingguy87, August 21, 2009 @ 4:10 am
Honestly, your answer is going to be no. You will have to have fair credit and proof of income plus decent work history or a co-signer. They will also want your savings and checking account information to put your finances under a microscope. It is a pain…I went the federal loan route. I wish you the best of luck!
By girlygirl08, August 21, 2009 @ 11:14 am
Private loans that require school certification take into consideration the cost of attendance less all other aid.
The cost of attendance estimate the school uses in certifying these loans includes an estimate for tuition, fees, books, supplies, personal/misc and room and board.
Be warned: private loans have high interest rates, are not tax deductible, require a cosigner, do not have any of the forgiveness provisions federal student and parent loans offer and require a credit check. They should be used only in extreme circumstances.
By metallicmumu, August 21, 2009 @ 8:42 pm
Yeah, that’s pretty much what I gained from the online sites concerning bankruptcy. Too bad we aren’t living in the 70’s anymore. That was the hayday of sweet ass bankruptcy!!!!
By palabine, August 21, 2009 @ 10:17 pm
Of course, bankruptcy prevents creditors from collecting from you while you are in bankruptcy. Bankruptcy will give you time to collect yourself and you won’t have to make payments in the meantime. It will probably discharge credit card debt and other perosnal debt, but at the end you will still have student loans, but probably at lower payments. However, bankruptcy stays on your credit for 7 years and getting loans for, say, a large house purchase will be difficult if not impossible.
By majax79, August 22, 2009 @ 5:46 am
cause their private and only that student can only use it
By xsweetkisses03x, August 22, 2009 @ 5:52 pm
You actually won't see a check, they send it straight to your school's financial aid office. Any money that is left over will be reimbursed to you through your school's bursar office. (You might have to fill out a form asking for your signature to get your money back)
By PilotLiteCom, August 22, 2009 @ 6:04 pm
hey metallicmumu,
We were wondering if you’d care to submit your student loans pilot into the Pilot Lite festival which exhibits unaired and original television pilots from independent producers.
Cheers!
Pilot Lite
By palabine, August 22, 2009 @ 9:47 pm
Only severe mental or physical disability or certain homelessness as a result would even be considered as “undue hardship”. If you have children their welfare will be taken into account, too. Most people get in trouble when they don’t swallow their pride and fail to make payments without contacting the lender. If you are honestly seeking work and trying to work with them, they will generally understand.
By sethbaker, August 23, 2009 @ 11:26 am
The chick ex machina at the end was super dreamy. Herve was pretty damn classic, too. The rest of it kinda blew. I’d've been happy with a movie that simply had Herve and the cutie pie with the car. If I somehow had a feature-length film containing simple cross-cutting beween those two characters doing their things, I would be in heaven. I’d literally watch that thing’s ass off, for days, literally.
By Ms. Attitude, August 23, 2009 @ 7:55 pm
The better loans will always be the federal loans. The interest rates will be better and the term and fees will be better. Some federal loans also are "subsidized" which means the government pays the interest rates on them while you are in school. In both situations the loans go to your school.
Read this book. It has a very good explination about federal student loans.
http://studentaid.ed.gov/students/attachments/siteresources/FundingEduBeyondHighSchool_0910.pdf
By MaureenFitzpatrick, August 24, 2009 @ 1:06 am
hahahahahhahahaha i love the part with his parents being dead
By Steve S, August 24, 2009 @ 10:33 am
here is a great artice on student load consolidation that may help you;
http://beezjazz.com/2008/03/18/studen-loan-consolidation-insider/
By sethbaker, August 24, 2009 @ 1:20 pm
The chick ex machina at the end was super dreamy. Herve was pretty damn classic, too. The rest of it kinda blew. I’d've been happy with a movie that simply had Herve and the cutie pie with the car. If I somehow had a feature-length film containing simple cross-cutting beween those two characters doing their things, I would be in heaven. I’d literally watch that thing’s ass off, for days, literally.