People serving in the military are usually considered to begood risk because of the secure nature of their job and a source of steadyincome from the government. Obtaining credit for military personnel is veryeasy and most of the lending institutions like banks, credit unions, etc andalso credit card companies readily offer credit to these people. These loansare of different types and all of them are broadly classified into the militaryloans.
Out of the various military loans made available to the militarypersonnel military auto loans are one of the most popular among them. With thehelp of military auto loans the people serving in the military can easily buy aused or new vehicle. The military auto loans have more flexible terms andconditions for the loan and moreover they would come at lower interest rates.Qualifying for the military auto loans is also very easy. Usually the lenderswould require the borrower applying for military auto loans to fill out onlineapplications.
When the borrower applies for the military auto loans he isrequired to provide a proof of the service. Besides this the lendinginstitution would also check the credit history of the borrower, the permanentaddress of the borrower where he is stationed and the social security number.Besides this the borrower would also have to provide the required contactinformation of a person who would receive the mail on their behalf. Themilitary auto loans are a good option for people serving in the military.
Getting approval for the traditional auto loan is usuallynot easy and takes a lot of time. But on the other hand approval of themilitary loan does not take much time and is approved fast. Any financialagreement that is made for people serving in the military does not require anyresidency requirement or minimum period of employment. However when you applyfor the conventional auto loan they would require the borrower to have livedfor at least one year in the present house and should have been employed in thesame firm for the past 2 years.
When repaying the military auto loans there are many lendersthat would provide flexible options to the borrowers. This is especiallyapplicable for people who are deployed overseas and in war areas. The militaryauto loans would allow military personnel as well as their spouses to buyvehicles so that they would not have to go through the traditional process ofthe conventional auto loans.
Before taking military auto loans it is advised that theborrower asks his colleagues and friends and other members of the family as towhich financial institution they would recommend for military auto loans. Youshould make sure that when you take military auto loans you apply with lenderthat is authorized to give these loans. Besides this the borrower should alsomake sure that there have not been any complaints in the past against thelender.
It is very important that the borrower chooses the lenderfor the military auto loan after much consideration and contemplation. Beforeapplying for these loans it is advised that the borrower should get advise fromthe counsel and do some Internet search to look for the right lender. Youshould find a financial institution that does not charge any hidden fees andhas reasonable terms and competitive interest rates. You should also considerhow much would the monthly payments come to when you take these loans.
Apart from the normal military auto loans there are a numberof lenders that would offer bad credit military auto loans. Even the bad creditmilitary auto loans are not difficult to look for. When you look online youwould find there are various options available for you. When applying formilitary auto loans it is advised that you apply online so as to quicken theapplication process.
When taking the military auto loans it is advised that theperson goes through the terms and conditions of the loan before signing up forit. When taking military auto loans, it is very important that the borrowerunderstands the terms and conditions of the loan thoroughly so as to avoid anyconfusion. If there is clause that the borrower does not understand then heshould verify with the lender.
Besides reading the normal terms and conditions it is alsoadvised that the person reads the fine print of the loan. The fine print attimes carries a lot of valuable information. When looking at the terms andconditions of the loan the borrower should consider looking for the interestrates, duration of the loan, and other relevant terms like deferment fees etc.Usually the deferment fees for the military auto loans are high. This wouldmean that if you default on these loans you would have to pay a higher penaltyon the loan.
Though the terms and conditions for the military auto loansare usually fixed but you can consider negotiating on the terms to get aflexible deal on the loan. Most of these loans are available online also hencemaking it easier for the borrower to apply for these loans. The military autoloans are a good option for people serving in the military when they wish totake a loan for buying an automobile. When taking the military auto loans it isadvised that the person compare the rates offered by various lenders so that hecan opt for the offer that would suit him the best.
Friday, September 28, 2007
Debt Consolidation Loan and Consolidation Loans
Debt consolidation loan services act as a third party intermediary to assist you in negotiating lower interest fees and monthly payments with your unsecured debt holders. If you are falling behind on your monthly payments, as many consumers are, you can quickly build up late fees and over limit fees. Debt consolidation loans allow you to have only one monthly payment, which is less than the total of your previous monthly payments combined. Most debt consolidation loan services cost anywhere from approximately 30 to 75 dollars per month and some debt consolidation loans require an initial account set-up fee. Of course, this will vary among the different debt consolidation loan companies.
Debt consolidation loans will provide the service of having the intermediary to contact your creditors and set a new payment schedule with them. This will eliminate "over the limit" and late fees and save you hundreds of dollars in monthly payment amounts. If you have fallen behind on your monthly payments, some of your creditors may be contacting you. When you obtain a debt consolidation loan and the loan company negotiates a new payment schedule and brings your account up to date, the creditor will no longer call you. Debt consolidation loans help provide peace of mind in knowing that you can become current on your unsecured debts and have some extra money each month to go toward other debts, such as a mortgage payment, and living expenses.
If you are faced with needing to obtain a debt consolidation loan, choose a reputable company that guarantees results. You want to be sure and do your best to keep your credit score up. Debt consolidation loans can keep you from damaging your credit scores by allowing you a lower monthly payment. A debt consolidation loan can turn what could be a very bad financial situation into a good one, providing that you do not continue to incur debt and learn how to best manage your money with an ultimate goal of becoming debt free.
Home equity loans are a form of debt consolidation loans if you use the equity in your home to pay off other debts. This leaves you with one monthly payment to your bank or mortgage company at one low interest rate. Some of the debts that qualify for a debt consolidation loan are student loans, credit cards, medical bills, department store credit accounts, and car loans. Debt consolidation loans can keep you from having to file bankruptcy, but it is important to take steps to learn how to manage your debt and be a good steward of what God has blessed you with. "Let your conversation be without covetousness; and be content with such things as ye have: for he hath said, I will never leave thee, nor forsake thee." (Hebrews 13:5)
Debt consolidation loans will provide the service of having the intermediary to contact your creditors and set a new payment schedule with them. This will eliminate "over the limit" and late fees and save you hundreds of dollars in monthly payment amounts. If you have fallen behind on your monthly payments, some of your creditors may be contacting you. When you obtain a debt consolidation loan and the loan company negotiates a new payment schedule and brings your account up to date, the creditor will no longer call you. Debt consolidation loans help provide peace of mind in knowing that you can become current on your unsecured debts and have some extra money each month to go toward other debts, such as a mortgage payment, and living expenses.
If you are faced with needing to obtain a debt consolidation loan, choose a reputable company that guarantees results. You want to be sure and do your best to keep your credit score up. Debt consolidation loans can keep you from damaging your credit scores by allowing you a lower monthly payment. A debt consolidation loan can turn what could be a very bad financial situation into a good one, providing that you do not continue to incur debt and learn how to best manage your money with an ultimate goal of becoming debt free.
Home equity loans are a form of debt consolidation loans if you use the equity in your home to pay off other debts. This leaves you with one monthly payment to your bank or mortgage company at one low interest rate. Some of the debts that qualify for a debt consolidation loan are student loans, credit cards, medical bills, department store credit accounts, and car loans. Debt consolidation loans can keep you from having to file bankruptcy, but it is important to take steps to learn how to manage your debt and be a good steward of what God has blessed you with. "Let your conversation be without covetousness; and be content with such things as ye have: for he hath said, I will never leave thee, nor forsake thee." (Hebrews 13:5)
What You Need to Know About Debt Consolidation
Debt consolidation is often a last resort for people who are in extreme debt and trying to avoid bankruptcy. Many people who are not in danger of bankruptcy, but have debt on high interest credit cards may also choose to consolidate their debt. Debt consolidation is defined as the process of organizing loans and debts into one low-interest loan that can be paid off regularly. Consolidating debt can help someone avoid bankruptcy, and help them manage their money more wisely. Debt consolidation is also convenient because it becomes easier to keep track of debt and one is only required to pay off one loan rather than several debts. In order to consolidate ones debt, collateral must be given. The collateral is usually the home, or a vehicle.
Central to debt consolidation is a debt consolidation company. It is important to choose the best company to fit your financial needs. As is common in any financial sphere, there are reputable companies, and companies that use underhanded methods to gain more money from the customer. Most debt consolidation companies do use honorable methods, but it is still important to know what some underhanded companies will do.
1. Some companies will wait until you are backed into a corner. If you know you are headed for financial trouble and wish to consolidate your debt, make sure your company starts working on it right away. Some companies will delay in debt consolidation so that the customer gets in more debt and therefore has to pay the company more money in the long run as well as short term. A customer who has to consolidate debt or else face bankruptcy can be forced to pay extremely high refinancing fees or debt consolidation fees.
2. Some companies will also charge exceptionally high debt consolidation fees to people who have high interest loans. Sometimes these fees can be extremely close to, or at the state maximum for mortgage fees. It is important to know how much companies are able to charge you, and compare that to what a company is offering. The lowest price is generally the best idea. Always be on the look out for unnaturally high fees because some companies will attempt to scam you.
3. Last, and certainly not least, you should be aware of companies practicing predatory lending. Predatory lending is a practice by some unscrupulous companies to allow their customers to become so in debt that no other company will help them. This is a way that a company can control you and make sure to make significant financial gains from your misfortune. Any debt consolidation service that attempts to control you is not a good service.
The decision to consolidate ones debt is a very important decision. It is important to understand this fact when looking for a company. Knowing how companies will try to make extra money at your expense is imperative to having a successful debt consolidation experience. Choose the best company and you will notice a positive outcome. Debt consolidation is a wise option for people with nowhere else to turn, but it must be a well-thought-out, educated decision.
Central to debt consolidation is a debt consolidation company. It is important to choose the best company to fit your financial needs. As is common in any financial sphere, there are reputable companies, and companies that use underhanded methods to gain more money from the customer. Most debt consolidation companies do use honorable methods, but it is still important to know what some underhanded companies will do.
1. Some companies will wait until you are backed into a corner. If you know you are headed for financial trouble and wish to consolidate your debt, make sure your company starts working on it right away. Some companies will delay in debt consolidation so that the customer gets in more debt and therefore has to pay the company more money in the long run as well as short term. A customer who has to consolidate debt or else face bankruptcy can be forced to pay extremely high refinancing fees or debt consolidation fees.
2. Some companies will also charge exceptionally high debt consolidation fees to people who have high interest loans. Sometimes these fees can be extremely close to, or at the state maximum for mortgage fees. It is important to know how much companies are able to charge you, and compare that to what a company is offering. The lowest price is generally the best idea. Always be on the look out for unnaturally high fees because some companies will attempt to scam you.
3. Last, and certainly not least, you should be aware of companies practicing predatory lending. Predatory lending is a practice by some unscrupulous companies to allow their customers to become so in debt that no other company will help them. This is a way that a company can control you and make sure to make significant financial gains from your misfortune. Any debt consolidation service that attempts to control you is not a good service.
The decision to consolidate ones debt is a very important decision. It is important to understand this fact when looking for a company. Knowing how companies will try to make extra money at your expense is imperative to having a successful debt consolidation experience. Choose the best company and you will notice a positive outcome. Debt consolidation is a wise option for people with nowhere else to turn, but it must be a well-thought-out, educated decision.
Debt Consolidation
Debt consolidation involves taking out one loan to pay off several others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of having only one loan.
Debt consolidation programs can be very helpful in certain situations. If you are paying several different loans or credit card accounts, consolidating all of them may simplify your life because you would get only one monthly statement and make one payment. You might also find that your monthly debt payments decrease if you use a debt consolidation program that stretches your payments out over a longer period of time. This means that you'll pay out less each month and you can free up some cash.
Many people are in credit card debt because they spend more than their income. If you use debt consolidation to pay off high interest credit cards your available credit on those cards will once again be available. If you continue to use them and run the balance up again you may find yourself in even more debt and you may not have the resources to consolidate again.
Using debt consolidation programs can be a double edged sword. All these programs do is shift your debt - a debt consolidation program does not eliminate your debt. You owe the money and will have to pay it back sooner or later.
A Debt consolidation loan can be secured or unsecured. The difference is that if you get a secured load you may have to put up collateral. Collateral is usually "real property" such as a house or land. In this type of loan if you do not pay back the loan according to its terms the lender may be able to take the collateral. The risk to the lender is reduced so the interest rate offered is lower. In simple English, this means that if you do not pay the consolidation loan you could loose your collateral. An unsecured loan is one that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral.
Sometimes, debt consolidation companies can discount the amount of the loan. When the debtor is in danger of bankruptcy, the debt consolidator will buy the loan at a discount. If you are careful you can shop around for consolidators who will pass along some of the savings to you. Consolidation can affect the ability of the debtor to discharge debts in bankruptcy, so the decision to consolidate must be weighed carefully.
Because of the theoretical advantage that debt consolidation offers a consumer that has high interest debt balances, companies can take advantage of that benefit of refinancing to charge very high fees in the debt consolidation loan. Sometimes these fees are near the state maximum for mortgage fees. In addition, some unscrupulous companies will knowingly wait until a client has backed themselves into a corner and must refinance in order to consolidate and pay off bills that they are behind on the payments. If the client does not refinance they may lose their house, so they are willing to pay any allowable fee to complete the debt consolidation. In some cases the situation is that the client does not have enough time to shop for another lender with lower fees and may not even be fully aware of them. This practice is known as predatory lending. Certainly many, if not most, debt consolidation transactions do not involve predatory lending.
Remember what you're risking by using one of these programs. Often, you'll use a home equity loan or a home equity line of credit to consolidate your debt. The consequences of falling off the payment schedule can include the loss of your home in some cases. Credit card companies can't take your home. However, if you pledge your home as collateral in a debt consolidation program then your house is fair game.
Debt consolidation programs can be very helpful in certain situations. If you are paying several different loans or credit card accounts, consolidating all of them may simplify your life because you would get only one monthly statement and make one payment. You might also find that your monthly debt payments decrease if you use a debt consolidation program that stretches your payments out over a longer period of time. This means that you'll pay out less each month and you can free up some cash.
Many people are in credit card debt because they spend more than their income. If you use debt consolidation to pay off high interest credit cards your available credit on those cards will once again be available. If you continue to use them and run the balance up again you may find yourself in even more debt and you may not have the resources to consolidate again.
Using debt consolidation programs can be a double edged sword. All these programs do is shift your debt - a debt consolidation program does not eliminate your debt. You owe the money and will have to pay it back sooner or later.
A Debt consolidation loan can be secured or unsecured. The difference is that if you get a secured load you may have to put up collateral. Collateral is usually "real property" such as a house or land. In this type of loan if you do not pay back the loan according to its terms the lender may be able to take the collateral. The risk to the lender is reduced so the interest rate offered is lower. In simple English, this means that if you do not pay the consolidation loan you could loose your collateral. An unsecured loan is one that is issued and supported only by the borrower's creditworthiness, rather than by some sort of collateral.
Sometimes, debt consolidation companies can discount the amount of the loan. When the debtor is in danger of bankruptcy, the debt consolidator will buy the loan at a discount. If you are careful you can shop around for consolidators who will pass along some of the savings to you. Consolidation can affect the ability of the debtor to discharge debts in bankruptcy, so the decision to consolidate must be weighed carefully.
Because of the theoretical advantage that debt consolidation offers a consumer that has high interest debt balances, companies can take advantage of that benefit of refinancing to charge very high fees in the debt consolidation loan. Sometimes these fees are near the state maximum for mortgage fees. In addition, some unscrupulous companies will knowingly wait until a client has backed themselves into a corner and must refinance in order to consolidate and pay off bills that they are behind on the payments. If the client does not refinance they may lose their house, so they are willing to pay any allowable fee to complete the debt consolidation. In some cases the situation is that the client does not have enough time to shop for another lender with lower fees and may not even be fully aware of them. This practice is known as predatory lending. Certainly many, if not most, debt consolidation transactions do not involve predatory lending.
Remember what you're risking by using one of these programs. Often, you'll use a home equity loan or a home equity line of credit to consolidate your debt. The consequences of falling off the payment schedule can include the loss of your home in some cases. Credit card companies can't take your home. However, if you pledge your home as collateral in a debt consolidation program then your house is fair game.
Air Force Debt Consolidation Loans
Air force debt consolidation loans are military loans that are allotted for air force personnel or military personnel only. These loans are extended to active servicemen or a retiree to satisfy their financial requirements. Military loans differ slightly from other debt consolidation loans.
Generally, a military loan or loan from air force does not require a collateral. A military loan is usually considered as an unsecured loan. If the military personnel are able to pay off their military loans early, they may not have to pay any interest, or any other fees. Though, the personnel must have a good credit history.
Military personnel can obtain military loans instantly by merely making a phone call. The personnel can also find military lenders on the Internet. They can apply for a military loan online by filling out a simple application form. Many online lenders can immediately inform the personnel if they are eligible for the loan. Military personnel can request for online quotes of various moneylenders. They can compare various quotes in terms of loan interest rates and choose the best-suited loan plan.
Military loans have lower interest rates, as compared to loans offered to civilians. In some cases, interest free military loans are also offered to Air Force and other military personnel.
Instant cash payday loans are the most common form of military loans. This loan is offered to armed forces personnel, who need quick cash during emergencies. Military loans are offered to military personnel regardless of their rank or grade.
With advances in technology, military personnel can apply for a loan from anywhere. Through electronic funds transfer, employees can receive the cash loan after approval. Online transactions are protected and secured to ensure the safety and confidentiality.
Military loans can be used to buy various consumer goods such as cars and computers. They can also be used for educational purposes, for home improvement projects, or for buying a house.
Military loans offer lower monthly payments than traditional loans. They also offer the convenience of repaying only one loan, instead of trying to remember to pay various bills before their due dates.
Generally, a military loan or loan from air force does not require a collateral. A military loan is usually considered as an unsecured loan. If the military personnel are able to pay off their military loans early, they may not have to pay any interest, or any other fees. Though, the personnel must have a good credit history.
Military personnel can obtain military loans instantly by merely making a phone call. The personnel can also find military lenders on the Internet. They can apply for a military loan online by filling out a simple application form. Many online lenders can immediately inform the personnel if they are eligible for the loan. Military personnel can request for online quotes of various moneylenders. They can compare various quotes in terms of loan interest rates and choose the best-suited loan plan.
Military loans have lower interest rates, as compared to loans offered to civilians. In some cases, interest free military loans are also offered to Air Force and other military personnel.
Instant cash payday loans are the most common form of military loans. This loan is offered to armed forces personnel, who need quick cash during emergencies. Military loans are offered to military personnel regardless of their rank or grade.
With advances in technology, military personnel can apply for a loan from anywhere. Through electronic funds transfer, employees can receive the cash loan after approval. Online transactions are protected and secured to ensure the safety and confidentiality.
Military loans can be used to buy various consumer goods such as cars and computers. They can also be used for educational purposes, for home improvement projects, or for buying a house.
Military loans offer lower monthly payments than traditional loans. They also offer the convenience of repaying only one loan, instead of trying to remember to pay various bills before their due dates.
Debt Consolidation Loan
Debt consolidation loans are popular for their ability to combine other debts in to one monthly payment. You’ve probably heard the endless television commercials about consolidating your outgoings, and there does seem to be a large market for this kind of financial action.
There are many reasons why you might wish to consolidate your debts. Consider the idea that you have several outgoings, all at different monthly fees, all with different deadlines to be received by. Is that going to help you sleep easily?
It can be a time consuming business to keep on top of a loan, and even more consuming to keep on top of several different debts. By consolidating, we can take out another loan and pile the debts together. Don’t expect your outgoings to suddenly disappear in a puff of white smoke, we haven’t got that far yet. But it is a great way to loosen the responsibility on your shoulders and grab control of the situation.
Of course, there’s also the chance that your debts are working at different interest rates. Some may be fixed, others may be variable. How are you maintain a budget when rates are skipping all over the place and you don’t know what’s what. By using debt consolidation, you can turn all those differing rates in to one single interest-rate.
It’s likely that the interest rate will be high, although you can get special 0% bonuses for set time frames. These act as an introductory incentive more than anything. Both variable and fixed debt consolidation loans are available. Variable rates are by far the most actively used loans and they have the potential to go both up or down. It’s nice to know that only one of your repayments is gaining interest, rather than a whole filing cabinet full of them!
And once again, you can expect to find both secured and unsecured debt consolidation loans. If you have a mountain of debts to take care of, it’s likely that only a secured loan with be suffice. These kind of loans offer extra money and lower interest rates - but they come with the additional burden of having to secure the loan. To secure a loan, you’ll have to link it to your assets , and normally your home.
Unsecured loans offer less money and are a good option for consolidating lots of mini-debts. They don’t come with the stress of having to tie your property in to the equation, and you have a certain degree of the flexibility.
What a lender is willing to offer you will be determined largely by your credit report. If you have a good history, you’re more likely to be offered an unsecured debt consolidation package. If your record is tainted, you could end up having to put your home at risk.
Debt consolidation offers peace of mind more than anything. It’ll take you longer to pay off your debts, but on a monthly basis, you’ll have much less to worry about. It’s also possible to make savings due to the consolidated interest.
There are many reasons why you might wish to consolidate your debts. Consider the idea that you have several outgoings, all at different monthly fees, all with different deadlines to be received by. Is that going to help you sleep easily?
It can be a time consuming business to keep on top of a loan, and even more consuming to keep on top of several different debts. By consolidating, we can take out another loan and pile the debts together. Don’t expect your outgoings to suddenly disappear in a puff of white smoke, we haven’t got that far yet. But it is a great way to loosen the responsibility on your shoulders and grab control of the situation.
Of course, there’s also the chance that your debts are working at different interest rates. Some may be fixed, others may be variable. How are you maintain a budget when rates are skipping all over the place and you don’t know what’s what. By using debt consolidation, you can turn all those differing rates in to one single interest-rate.
It’s likely that the interest rate will be high, although you can get special 0% bonuses for set time frames. These act as an introductory incentive more than anything. Both variable and fixed debt consolidation loans are available. Variable rates are by far the most actively used loans and they have the potential to go both up or down. It’s nice to know that only one of your repayments is gaining interest, rather than a whole filing cabinet full of them!
And once again, you can expect to find both secured and unsecured debt consolidation loans. If you have a mountain of debts to take care of, it’s likely that only a secured loan with be suffice. These kind of loans offer extra money and lower interest rates - but they come with the additional burden of having to secure the loan. To secure a loan, you’ll have to link it to your assets , and normally your home.
Unsecured loans offer less money and are a good option for consolidating lots of mini-debts. They don’t come with the stress of having to tie your property in to the equation, and you have a certain degree of the flexibility.
What a lender is willing to offer you will be determined largely by your credit report. If you have a good history, you’re more likely to be offered an unsecured debt consolidation package. If your record is tainted, you could end up having to put your home at risk.
Debt consolidation offers peace of mind more than anything. It’ll take you longer to pay off your debts, but on a monthly basis, you’ll have much less to worry about. It’s also possible to make savings due to the consolidated interest.
Other Types of Consolidation Aid
In addition to the primary sources of financial aid (loans and scholarships), other kinds of aid are available to many students. These other types of aid fall into eight broad categories:
1. Free Scholarship Lotteries
2. Federal and State Government Aid
3. College-Controlled Aid
4. Student Profile-Based Aid
5. Aid for Graduate and Professional School
6. Aid for Elementary and Secondary School
7. Aid for Specific Activities
8. Innovative Programs
Free Scholarship Lotteries
Scholarship Lotteries
Several sites have started giving away scholarships to attract traffic. Look here for a list of the largest free scholarship lotteries.
Federal and State Government Aid
US Federal Government Aid
Here you'll find information about the various forms of aid available from the federal government.
US State Government Aid
Look here for pointers to state aid programs and residency requirements for in-state tuition.
Section 529 Plans: Prepaid Tuition Plans and College Savings Plans
Section 529 plans are state-sponsored college savings programs. The two major types are Prepaid Tuition Plans, which lock in current tuition rates, and State College Savings Plans, which offer more flexible investing options. Both are useful ways for families to save for their children's college education.
Scholarships for Volunteering and Community Service
Volunteering can not only help the disadvantaged, but it can provide money for your college education. Learn about the National Service Scholarships Program, AmeriCorps, and other awards for community service.
Military Aid
Aid resources for veterans and their dependents and for students interested in pursuing careers in the military.
Education Tax Benefits
Information about the Hope Scholarship and Lifetime Learning tax credits, the deduction for student loan interest, tax treatment of employer education assistance, and other tax benefits for education.
College-Controlled Aid
School Financial Aid Office Web Sites
Look here for information about your school's financial aid policies and procedures, including application deadlines.
Tuition Payment Plans
Tuition payment plans are short-term installment plans that split your tuition into equal monthly payments.
School-Specific Scholarships and Fellowships
Scholarship and fellowship programs offered only at specific schools, including college-controlled merit scholarships.
College Partnerships
Partnerships between certain community colleges and four-year colleges make it easier for students to transfer from a community college into a four-year college. Studying for two years at a community college can save the student a significant amount of money.
Student Profile-Based Aid
International Students
Sources of financial aid and other useful information for foreign nationals studying in the US.
Canadian Students
Scholarships, loans and other sources of aid for Canadian students, in both Canada and the US.
Students with Disabilities
Resources specific to students with disabilities.
Female Students
Scholarships, grants and other awards intended specifically for female students.
Minority Students
Scholarships, award programs and advice specifically for members of ethnic minorities.
Older Students
Financial aid information for students age 30 and older.
Jewish Students
Financial aid information for Jewish students.
Gay, Lesbian, Bisexual and Transgendered Students
National, regional and school-specific scholarships for gay, lesbian, bisexual and transgendered students.
Undocumented Students and Illegal Aliens
Financial aid and scholarships for undocumented students and illegal aliens.
Ayuda Financiera del Estudiante en Espanol
Financial aid information and resources in Spanish.
Cancer Scholarships
Scholarships for cancer patients, cancer survivors, children of a cancer patient or survivor, students who lost a parent to cancer, and students pursuing careers in cancer treatment.
Prestigious Scholarships and Fellowships
A list of the most prestigious, competitive and lucrative scholarships and fellowships.
Aid for Graduate and Professional School
Graduate School
Options and tips for funding a postgraduate education.
Business School
Awards and advice specific to MBA students.
Law School
Awards and advice specific to law students.
Medical School
Awards, professional organizations and other resources specific to medical students.
Aid for Elementary and Secondary School
Private Elementary and Secondary Schools
Financial aid available to parents of children attending private elementary or secondary schools.
Aid for Specific Activities
Contests
Some groups, particularly professional organizations, hold contests that offer cash and other prizes.
Domestic Exchange and Study Abroad Programs
A variety of loans, scholarships, grants and tuition-reduction options are available for students studying abroad, or participating in domestic exchange programs.
Grants
Grants are a form of financial aid, based on need, which you do not have to repay. Numerous private organizations and government agencies offer grants to students in all fields.
Sports Scholarships, Athletic Scholarships and Financial Aid for Student Athletes
Information about sports scholarships and other resources for the student-athlete.
Specific Majors or Courses of Study
Scholarships and awards available to students pursuing specific majors, such as computer science, engineering, journalism, nursing, etc.
Innovative Programs
Student Sponsorships and Education Investments
Private benefactors and investors provide students with funding for their education in exchange for a fixed percentage of the student's future income for a fixed number of years. Many students find these as an attractive alternative to loans.
Early Awareness Initiatives
Early awareness initiatives try to increase the number of students pursuing a college education by encouraging them to consider college as a real possibility when they are young. Many lower-income children give up on college when they are very young, as early as the first or second grade. By the time they reach high school and change their minds, they often lack the necessary preparation. Early awareness programs try to stop pipeline leakage when the students are young by encouraging them to aspire to and plan for college. This increases the number of students pursuing challenging courses, the number of students graduating from high school, and the number of students matriculating in college.
1. Free Scholarship Lotteries
2. Federal and State Government Aid
3. College-Controlled Aid
4. Student Profile-Based Aid
5. Aid for Graduate and Professional School
6. Aid for Elementary and Secondary School
7. Aid for Specific Activities
8. Innovative Programs
Free Scholarship Lotteries
Scholarship Lotteries
Several sites have started giving away scholarships to attract traffic. Look here for a list of the largest free scholarship lotteries.
Federal and State Government Aid
US Federal Government Aid
Here you'll find information about the various forms of aid available from the federal government.
US State Government Aid
Look here for pointers to state aid programs and residency requirements for in-state tuition.
Section 529 Plans: Prepaid Tuition Plans and College Savings Plans
Section 529 plans are state-sponsored college savings programs. The two major types are Prepaid Tuition Plans, which lock in current tuition rates, and State College Savings Plans, which offer more flexible investing options. Both are useful ways for families to save for their children's college education.
Scholarships for Volunteering and Community Service
Volunteering can not only help the disadvantaged, but it can provide money for your college education. Learn about the National Service Scholarships Program, AmeriCorps, and other awards for community service.
Military Aid
Aid resources for veterans and their dependents and for students interested in pursuing careers in the military.
Education Tax Benefits
Information about the Hope Scholarship and Lifetime Learning tax credits, the deduction for student loan interest, tax treatment of employer education assistance, and other tax benefits for education.
College-Controlled Aid
School Financial Aid Office Web Sites
Look here for information about your school's financial aid policies and procedures, including application deadlines.
Tuition Payment Plans
Tuition payment plans are short-term installment plans that split your tuition into equal monthly payments.
School-Specific Scholarships and Fellowships
Scholarship and fellowship programs offered only at specific schools, including college-controlled merit scholarships.
College Partnerships
Partnerships between certain community colleges and four-year colleges make it easier for students to transfer from a community college into a four-year college. Studying for two years at a community college can save the student a significant amount of money.
Student Profile-Based Aid
International Students
Sources of financial aid and other useful information for foreign nationals studying in the US.
Canadian Students
Scholarships, loans and other sources of aid for Canadian students, in both Canada and the US.
Students with Disabilities
Resources specific to students with disabilities.
Female Students
Scholarships, grants and other awards intended specifically for female students.
Minority Students
Scholarships, award programs and advice specifically for members of ethnic minorities.
Older Students
Financial aid information for students age 30 and older.
Jewish Students
Financial aid information for Jewish students.
Gay, Lesbian, Bisexual and Transgendered Students
National, regional and school-specific scholarships for gay, lesbian, bisexual and transgendered students.
Undocumented Students and Illegal Aliens
Financial aid and scholarships for undocumented students and illegal aliens.
Ayuda Financiera del Estudiante en Espanol
Financial aid information and resources in Spanish.
Cancer Scholarships
Scholarships for cancer patients, cancer survivors, children of a cancer patient or survivor, students who lost a parent to cancer, and students pursuing careers in cancer treatment.
Prestigious Scholarships and Fellowships
A list of the most prestigious, competitive and lucrative scholarships and fellowships.
Aid for Graduate and Professional School
Graduate School
Options and tips for funding a postgraduate education.
Business School
Awards and advice specific to MBA students.
Law School
Awards and advice specific to law students.
Medical School
Awards, professional organizations and other resources specific to medical students.
Aid for Elementary and Secondary School
Private Elementary and Secondary Schools
Financial aid available to parents of children attending private elementary or secondary schools.
Aid for Specific Activities
Contests
Some groups, particularly professional organizations, hold contests that offer cash and other prizes.
Domestic Exchange and Study Abroad Programs
A variety of loans, scholarships, grants and tuition-reduction options are available for students studying abroad, or participating in domestic exchange programs.
Grants
Grants are a form of financial aid, based on need, which you do not have to repay. Numerous private organizations and government agencies offer grants to students in all fields.
Sports Scholarships, Athletic Scholarships and Financial Aid for Student Athletes
Information about sports scholarships and other resources for the student-athlete.
Specific Majors or Courses of Study
Scholarships and awards available to students pursuing specific majors, such as computer science, engineering, journalism, nursing, etc.
Innovative Programs
Student Sponsorships and Education Investments
Private benefactors and investors provide students with funding for their education in exchange for a fixed percentage of the student's future income for a fixed number of years. Many students find these as an attractive alternative to loans.
Early Awareness Initiatives
Early awareness initiatives try to increase the number of students pursuing a college education by encouraging them to consider college as a real possibility when they are young. Many lower-income children give up on college when they are very young, as early as the first or second grade. By the time they reach high school and change their minds, they often lack the necessary preparation. Early awareness programs try to stop pipeline leakage when the students are young by encouraging them to aspire to and plan for college. This increases the number of students pursuing challenging courses, the number of students graduating from high school, and the number of students matriculating in college.
Repayment Plans
Consolidation loans provide access to several alternate repayment plans besides standard ten-year repayment. These include extended repayment, graduated repayment, income contingent repayment (Direct Loans only) and income sensitive repayment (FFEL only). If you do not specify the repayment terms, you will receive standard ten-year repayment.
Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid over the lifetime of the loan is increased.
In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease.
You do not need to pick an alternate repayment plan. We recommend sticking with standard ten-year repayment, because it will save you money. The alternate repayment plans may have lower monthly payments, but this increases the term of the loan and the total interest paid over the lifetime of the loan. See our caveat about extended repayment below.
Repayment on a consolidation loan will begin within 60 days of disbursement of the loan, unless the borrower qualifies for an deferment or forbearance.
Federal education loans, including consolidation loans, do not have a prepayment penalty. So you can pay off all or part of your federal education loans without incurring a penalty. If you want to take advantage of this, be sure to include a letter with the extra payment indicating that it should be applied to reducing your principal. Otherwise, the lender may treat it as an advance payment of the next month's monthly payment.
Tools for Evaluating Consolidation Options
FinAid's Loan Consolidation Calculator can help you understand the tradeoffs of consolidating your loans. It compares the reduction in the monthly loan payment with the increase in the total interest paid over the lifetime of the loan. It also shows you the interest rate on your consolidation loan.
Despite the switch to fixed interest rates on Stafford and PLUS loans eliminating a key financial incentive to consolidate, there are still several reasons to consolidate your education loans. These include having a single monthly payment, access to alternate repayment plans, the PLUS loan interest rate loophole, and the ability to reset the 3-year clock on deferments and forbearances. But consolidation can cut short the grace period, although the grace period loophole can work around this problem. It is best to avoid consolidating Perkins loans, because you lose several valuable benefits. Beware of extending the term of your loan, as this can increase the total interest paid over the lifetime of the loan; you can stick with standard ten-year repayment.
Before consolidating, always evaluate the benefits provided by the current holder of your loans. The loan discounts offered by originating lenders tend to be superior to those offered by consolidating lenders, since consolidation loans have tighter margins. Also, if you received a fee waiver or rebate from the originating lender, you may have to repay that discount if you consolidate with another lender. It may be possible to get some of the benefits of alternate repayment plans without consolidating, such as extended/graduated repayment with a loan term of up to 25 years and a single monthly payment, if you have more than $30,000 in federal education loan debt accumulated since October 7, 1998 with the lender. (This is due to a little known provision of the Higher Education Act, in section 428(b)(9)(A)(iv), and the regulations at 34 CFR 682.209(a)(6)(ix).)
You can change the repayment schedule on your loan once per year. So consider starting off with standard ten-year repayment on your consolidation loan. You are not required to start off with extended repayment. If you find it difficult to afford the payments, you can always switch to extended repayment later.
Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid over the lifetime of the loan is increased.
In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease.
You do not need to pick an alternate repayment plan. We recommend sticking with standard ten-year repayment, because it will save you money. The alternate repayment plans may have lower monthly payments, but this increases the term of the loan and the total interest paid over the lifetime of the loan. See our caveat about extended repayment below.
Repayment on a consolidation loan will begin within 60 days of disbursement of the loan, unless the borrower qualifies for an deferment or forbearance.
Federal education loans, including consolidation loans, do not have a prepayment penalty. So you can pay off all or part of your federal education loans without incurring a penalty. If you want to take advantage of this, be sure to include a letter with the extra payment indicating that it should be applied to reducing your principal. Otherwise, the lender may treat it as an advance payment of the next month's monthly payment.
Tools for Evaluating Consolidation Options
FinAid's Loan Consolidation Calculator can help you understand the tradeoffs of consolidating your loans. It compares the reduction in the monthly loan payment with the increase in the total interest paid over the lifetime of the loan. It also shows you the interest rate on your consolidation loan.
Despite the switch to fixed interest rates on Stafford and PLUS loans eliminating a key financial incentive to consolidate, there are still several reasons to consolidate your education loans. These include having a single monthly payment, access to alternate repayment plans, the PLUS loan interest rate loophole, and the ability to reset the 3-year clock on deferments and forbearances. But consolidation can cut short the grace period, although the grace period loophole can work around this problem. It is best to avoid consolidating Perkins loans, because you lose several valuable benefits. Beware of extending the term of your loan, as this can increase the total interest paid over the lifetime of the loan; you can stick with standard ten-year repayment.
Before consolidating, always evaluate the benefits provided by the current holder of your loans. The loan discounts offered by originating lenders tend to be superior to those offered by consolidating lenders, since consolidation loans have tighter margins. Also, if you received a fee waiver or rebate from the originating lender, you may have to repay that discount if you consolidate with another lender. It may be possible to get some of the benefits of alternate repayment plans without consolidating, such as extended/graduated repayment with a loan term of up to 25 years and a single monthly payment, if you have more than $30,000 in federal education loan debt accumulated since October 7, 1998 with the lender. (This is due to a little known provision of the Higher Education Act, in section 428(b)(9)(A)(iv), and the regulations at 34 CFR 682.209(a)(6)(ix).)
You can change the repayment schedule on your loan once per year. So consider starting off with standard ten-year repayment on your consolidation loan. You are not required to start off with extended repayment. If you find it difficult to afford the payments, you can always switch to extended repayment later.
Student Loan Consolidation
Consolidation Loans combine several student or parent loans into one bigger loan from a single lender, which is then used to pay off the balances on the other loans. It is very similar to refinancing a mortgage. Consolidation loans are available for most federal loans, including FFELP (Stafford, PLUS and SLS), FISL, Perkins, Health Professional Student Loans, NSL, HEAL, Guaranteed Student Loans and Direct loans. Some lenders offer private consolidation loans for private education loans as well.
A separate page provides a comparison chart of consolidation loan discounts.
Interest Rates
The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.
For example, suppose a student has just Stafford Loans originated on or after July 1, 2006. These loans have a fixed interest rate of 6.8%. When they are consolidated by themselves, the consolidation loan will have an interest rate of 6 and 7/8ths of a percent, or 6.875%. So the interest rate increases only slightly.
If the borrower has a mix of loans with different interest rates, the weighted average will be somewhere in between. For example, if the borrower has $5,000 of Perkins Loans (at 5.0%) and $10,000 of Stafford Loans (at 6.8%), the weighted average is
$5,000 * 5.0% + $10,000 * 6.8%
------------------------------ = 6.2%
$5,000 + $10,000
This weighted average, 6.2%, is then rounded up to the nearest 1/8th of a percent, yielding a consolidation loan interest rate of 6.25%.
Note that the weighted average does not fundamentally alter the underlying cost of the loan. It preserves the cost structure by including each interest rate to the extent that it applies to part of the overall loan balance. For example, the consolidation loan in the previous paragraph says that of the $15,000 consolidation loan balance, $5,000 will be at 5.0% and $10,000 at 6.8%, yielding an equivalent interest rate of 6.2%.
If you are consolidating loans with different interest rates, the weighted average interest rate will always be in between. Don't be fooled if someone tries to suggest that this will save you money by getting you a lower interest rate. The interest rate may be lower than the highest of your interest rates, but it is also higher than the lowest of your interest rates. More importantly, the amount of interest you pay over the lifetime of the loan will be about the same.
(For the mathematically inclined, there is a slight difference due to the different shapes of amortization curves at each interest rate. In the example given above on a 10 year term, $10,000 at 6.8% has a monthly payment of $115.08 and total interest paid of $3,809.66, $5,000 at 5.0% has a monthly payment of $53.03 and total interest paid of $1,364.03. If you add these, you obtain a total monthly payment of $168.11 and a total interest paid of $5,173.69. Using the weighted average, $15,000 at 6.2% has a monthly payment of $168.04 and a total interest paid of $5,165.01. So using a weighted average yields a very small reduction in the monthly payment (in this case, 7 cents) and in the total interest paid ($8.68) due to a kind of triangle law. Of course, when you consolidate the interest rate is rounded up to the nearest 1/8th of a point, so $15,000 at 6.25% has monthly payments of $168.42 and total interest of $5,210.42, yielding a slight increase. So you pay a tiny bit of a premium for consolidation, due to the rounding up of the interest rate.
The PLUS loan interest rate loophole can reduce the interest rate on 8.5% fixed rate PLUS loans by 0.25% through consolidation.
If you were deferring the interest on an unsubsidized Stafford Loan by capitalizing it, most lenders will add the capitalized interest to principal when you consolidate. (Lenders can capitalize interest at most quarterly, but most capitalize it once when the loans enter repayment or at other loan status changes.)
No Cost to Consolidate
Aside from a slight increase in the interest rate on the consolidation loan, there is no cost to consolidate your loans. There are no fees to consolidate.
Under no circumstances pay a fee in advance to get a federal education loan or consolidate your federal education loans. There are no fees to consolidate your loans. While other federal education loans, such as the Stafford and PLUS loans, may charge some fees, the fees are always deducted from the disbursement check. There is never an up front fee. If someone wants you to pay an up front fee, chances are that it is an example of an advance fee loan scam.
Who Can Consolidate
Both student and parent borrowers can consolidate their education loans. (Students and parents cannot combine their loans through consolidation, since only loans from the same borrower can be consolidated. But they can consolidate their loans separately.)
Married students are no longer able to consolidate their loans together. This provision was repealed effective July 1, 2006. When married students consolidated their loans together, each spouse became responsible for the full amount of the loan, and the loans could not be separated if the couple got divorced. To avoid such problems in the future, Congress decided to repeal this provision as part of the Higher Education Reconciliation Act of 2005.
Students can only consolidate their education loans during the grace period or after the loans enter repayment. (Loans that are in default but with satisfactory repayment arrangements may also be consolidated.) Students can no longer consolidate while they are still in school. (The early repayment status loophole and the ability of Direct Loan borrowers to consolidate during the in-school period was repealed as part of the Higher Education Reconciliation Act of 2005, effective July 1, 2006.)
Parents, however, can consolidate PLUS loans at any time.
You Can Consolidate with Any Lender
Students and parents can consolidate their loans with any lender, even if all of their loans are with a single lender. (The single holder rule was repealed on June 15, 2006, as part of the Emergency Supplemental Appropriations Act of 2006. Borrowers no longer need to exploit the single holder rule loopholes in order to consolidate with any lender.) Direct Loans can also be consolidated with any lender. This allows you to shop around for a lender that offers a lower rate or better discounts.
Most lenders require a minimum balance before they will consolidate your loans. For example, many lenders will only offer consolidation loans for borrowers with loan balances of at least $7,500. A few lenders will offer consolidation loans for balances of $5,000 or more, and the Federal Direct Consolidation Loan program has no minimum balance for consolidation loans. (Lenders may not discriminate against borrowers who seek consolidation loans on the basis of number/type of student loans, type/category of educational institution, the interest rate on the loans, or the type of repayment schedule sought by the borrower. Lenders are, however, able to discriminate on the basis of the amount of the loans being consolidated, so lenders can set a minimum balance on the loans.)
Which Loans Can be Consolidated?
Any federal education loan can be consolidated. You can even consolidate a single loan. There are, however, a few restrictions on consolidating a consolidation loan.
You can consolidate a consolidation loan only once. In order to reconsolidate an existing consolidation loan, you must add loans that were not previously consolidated to the consolidation loan. You can also consolidate two consolidation loans together. But you cannot consolidate a single consolidation loan by itself. These restrictions have been in effect since early 2006.
Note that when you reconsolidate a consolidation loan, it does not relock the rates on the consolidation loan. The consolidation loan is treated as a fixed rate loan within the weighted average interest rate formula used to calculate the interest rate on the new consolidation loan. Consolidation does not pierce the veil on previous consolidations.
The new restrictions on consolidating a consolidation loan limit your ability to use consolidation to switch lenders. Generally, you will consolidate your loans once, toward the end of the grace period or after the loans enter repayment, and then be locked into that lender for the lifetime of the loan. If you want to preserve your ability to use consolidation in the future to switch lenders, you should exclude one of your loans from the consolidation.
A separate page provides a comparison chart of consolidation loan discounts.
Interest Rates
The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.
For example, suppose a student has just Stafford Loans originated on or after July 1, 2006. These loans have a fixed interest rate of 6.8%. When they are consolidated by themselves, the consolidation loan will have an interest rate of 6 and 7/8ths of a percent, or 6.875%. So the interest rate increases only slightly.
If the borrower has a mix of loans with different interest rates, the weighted average will be somewhere in between. For example, if the borrower has $5,000 of Perkins Loans (at 5.0%) and $10,000 of Stafford Loans (at 6.8%), the weighted average is
$5,000 * 5.0% + $10,000 * 6.8%
------------------------------ = 6.2%
$5,000 + $10,000
This weighted average, 6.2%, is then rounded up to the nearest 1/8th of a percent, yielding a consolidation loan interest rate of 6.25%.
Note that the weighted average does not fundamentally alter the underlying cost of the loan. It preserves the cost structure by including each interest rate to the extent that it applies to part of the overall loan balance. For example, the consolidation loan in the previous paragraph says that of the $15,000 consolidation loan balance, $5,000 will be at 5.0% and $10,000 at 6.8%, yielding an equivalent interest rate of 6.2%.
If you are consolidating loans with different interest rates, the weighted average interest rate will always be in between. Don't be fooled if someone tries to suggest that this will save you money by getting you a lower interest rate. The interest rate may be lower than the highest of your interest rates, but it is also higher than the lowest of your interest rates. More importantly, the amount of interest you pay over the lifetime of the loan will be about the same.
(For the mathematically inclined, there is a slight difference due to the different shapes of amortization curves at each interest rate. In the example given above on a 10 year term, $10,000 at 6.8% has a monthly payment of $115.08 and total interest paid of $3,809.66, $5,000 at 5.0% has a monthly payment of $53.03 and total interest paid of $1,364.03. If you add these, you obtain a total monthly payment of $168.11 and a total interest paid of $5,173.69. Using the weighted average, $15,000 at 6.2% has a monthly payment of $168.04 and a total interest paid of $5,165.01. So using a weighted average yields a very small reduction in the monthly payment (in this case, 7 cents) and in the total interest paid ($8.68) due to a kind of triangle law. Of course, when you consolidate the interest rate is rounded up to the nearest 1/8th of a point, so $15,000 at 6.25% has monthly payments of $168.42 and total interest of $5,210.42, yielding a slight increase. So you pay a tiny bit of a premium for consolidation, due to the rounding up of the interest rate.
The PLUS loan interest rate loophole can reduce the interest rate on 8.5% fixed rate PLUS loans by 0.25% through consolidation.
If you were deferring the interest on an unsubsidized Stafford Loan by capitalizing it, most lenders will add the capitalized interest to principal when you consolidate. (Lenders can capitalize interest at most quarterly, but most capitalize it once when the loans enter repayment or at other loan status changes.)
No Cost to Consolidate
Aside from a slight increase in the interest rate on the consolidation loan, there is no cost to consolidate your loans. There are no fees to consolidate.
Under no circumstances pay a fee in advance to get a federal education loan or consolidate your federal education loans. There are no fees to consolidate your loans. While other federal education loans, such as the Stafford and PLUS loans, may charge some fees, the fees are always deducted from the disbursement check. There is never an up front fee. If someone wants you to pay an up front fee, chances are that it is an example of an advance fee loan scam.
Who Can Consolidate
Both student and parent borrowers can consolidate their education loans. (Students and parents cannot combine their loans through consolidation, since only loans from the same borrower can be consolidated. But they can consolidate their loans separately.)
Married students are no longer able to consolidate their loans together. This provision was repealed effective July 1, 2006. When married students consolidated their loans together, each spouse became responsible for the full amount of the loan, and the loans could not be separated if the couple got divorced. To avoid such problems in the future, Congress decided to repeal this provision as part of the Higher Education Reconciliation Act of 2005.
Students can only consolidate their education loans during the grace period or after the loans enter repayment. (Loans that are in default but with satisfactory repayment arrangements may also be consolidated.) Students can no longer consolidate while they are still in school. (The early repayment status loophole and the ability of Direct Loan borrowers to consolidate during the in-school period was repealed as part of the Higher Education Reconciliation Act of 2005, effective July 1, 2006.)
Parents, however, can consolidate PLUS loans at any time.
You Can Consolidate with Any Lender
Students and parents can consolidate their loans with any lender, even if all of their loans are with a single lender. (The single holder rule was repealed on June 15, 2006, as part of the Emergency Supplemental Appropriations Act of 2006. Borrowers no longer need to exploit the single holder rule loopholes in order to consolidate with any lender.) Direct Loans can also be consolidated with any lender. This allows you to shop around for a lender that offers a lower rate or better discounts.
Most lenders require a minimum balance before they will consolidate your loans. For example, many lenders will only offer consolidation loans for borrowers with loan balances of at least $7,500. A few lenders will offer consolidation loans for balances of $5,000 or more, and the Federal Direct Consolidation Loan program has no minimum balance for consolidation loans. (Lenders may not discriminate against borrowers who seek consolidation loans on the basis of number/type of student loans, type/category of educational institution, the interest rate on the loans, or the type of repayment schedule sought by the borrower. Lenders are, however, able to discriminate on the basis of the amount of the loans being consolidated, so lenders can set a minimum balance on the loans.)
Which Loans Can be Consolidated?
Any federal education loan can be consolidated. You can even consolidate a single loan. There are, however, a few restrictions on consolidating a consolidation loan.
You can consolidate a consolidation loan only once. In order to reconsolidate an existing consolidation loan, you must add loans that were not previously consolidated to the consolidation loan. You can also consolidate two consolidation loans together. But you cannot consolidate a single consolidation loan by itself. These restrictions have been in effect since early 2006.
Note that when you reconsolidate a consolidation loan, it does not relock the rates on the consolidation loan. The consolidation loan is treated as a fixed rate loan within the weighted average interest rate formula used to calculate the interest rate on the new consolidation loan. Consolidation does not pierce the veil on previous consolidations.
The new restrictions on consolidating a consolidation loan limit your ability to use consolidation to switch lenders. Generally, you will consolidate your loans once, toward the end of the grace period or after the loans enter repayment, and then be locked into that lender for the lifetime of the loan. If you want to preserve your ability to use consolidation in the future to switch lenders, you should exclude one of your loans from the consolidation.
Business loans: translating potential for financial success and independence
A good entrepreneur knows that the essence of striking gold in business is finding the right opportunity and going after it despite the risks. These opportunities keep on sprouting when you are doing business. Or you might have stumbled upon one and contemplating taking it. Your financial condition may not help you to translate your potential for financial success and independence. Business loans can facilitate this translation.
Obtaining finance is central for starting a new business or making business grow. Financing a business through business loans can be a formidable task. But a good preparation can easily sort out any matter detrimental to getting your business loans approved. Taking a loan for business is an important decision. A business loans borrower must understand that while taking loans can help a business grow, a wrong decision will mean debt and actually damage financial stability of a business. Determine how much loan amount you require as business loans. There are different business loans products to decide from.
A well thought out business plan is the most significant part of getting a business loans approved. The business plan should have projection. Don’t go into details, a concise to the point executive summary which answers all the queries of a business loans, will gain easy acceptance. If you have an established business – financial statement, cash flow for the past three years will be required.
When business loans application is reviewed, some of the following questions might come up in one version or the other.
• How much loan do you require?
• What about business profits, does it have enough cash flow, to service the debt?
• Is there collateral to cover the loan?
• Is there a reasonable balance between debt and equity?
Business loans lender would pay much emphasis on your repayment ability. He would like to know if you have invested your own money in the business. He would not be very interested in taking risk in a venture where the business owner has not.
For business loans it is important to know your credit history. The business loans lender will undeniably go through your credit history. Go through your recent credit history and find out faults and recent credit discrepancies. If there are inconsistencies, get them removed. A credit history that is questionable will most likely not get business loans. However, if you attach a letter explaining your credit conduct can evoke a favourable response. The worst mistake will be to hiding your faults. This will most certainly reject an otherwise encouraging business loans application.
Few people realize it but locating a good business loans lender is integral to finding business loans. It is not easy to find business loans lender that abides by your needs. In fact it is an investment in itself. Look for business loans lender who is willing to work with you and for you.
Business loans also depend on your character and your ability to be present yourself, your business details and your confidence. They also count in getting your business loans accepted. In case business loans application is rejected – make sure you know the reason why this happened. This will enable you to rectify mistakes next time you make attempt to get business loans.
Collateral is chief ingredient for business loans. Secured business loans will require collateral and greatly add to the business loans application. Business loans without collateral are unsecured business loans. They are usually difficult to find. But unsecured business loans will only satisfy small financing needs.
Business loans are available for most financing needs. Business loans can be used for starting a business, refinancing, expanding your business, purchase of equipments or any other commercial investment. Insufficient business funds are one of the leading causes of business failure.
Obtaining finance is central for starting a new business or making business grow. Financing a business through business loans can be a formidable task. But a good preparation can easily sort out any matter detrimental to getting your business loans approved. Taking a loan for business is an important decision. A business loans borrower must understand that while taking loans can help a business grow, a wrong decision will mean debt and actually damage financial stability of a business. Determine how much loan amount you require as business loans. There are different business loans products to decide from.
A well thought out business plan is the most significant part of getting a business loans approved. The business plan should have projection. Don’t go into details, a concise to the point executive summary which answers all the queries of a business loans, will gain easy acceptance. If you have an established business – financial statement, cash flow for the past three years will be required.
When business loans application is reviewed, some of the following questions might come up in one version or the other.
• How much loan do you require?
• What about business profits, does it have enough cash flow, to service the debt?
• Is there collateral to cover the loan?
• Is there a reasonable balance between debt and equity?
Business loans lender would pay much emphasis on your repayment ability. He would like to know if you have invested your own money in the business. He would not be very interested in taking risk in a venture where the business owner has not.
For business loans it is important to know your credit history. The business loans lender will undeniably go through your credit history. Go through your recent credit history and find out faults and recent credit discrepancies. If there are inconsistencies, get them removed. A credit history that is questionable will most likely not get business loans. However, if you attach a letter explaining your credit conduct can evoke a favourable response. The worst mistake will be to hiding your faults. This will most certainly reject an otherwise encouraging business loans application.
Few people realize it but locating a good business loans lender is integral to finding business loans. It is not easy to find business loans lender that abides by your needs. In fact it is an investment in itself. Look for business loans lender who is willing to work with you and for you.
Business loans also depend on your character and your ability to be present yourself, your business details and your confidence. They also count in getting your business loans accepted. In case business loans application is rejected – make sure you know the reason why this happened. This will enable you to rectify mistakes next time you make attempt to get business loans.
Collateral is chief ingredient for business loans. Secured business loans will require collateral and greatly add to the business loans application. Business loans without collateral are unsecured business loans. They are usually difficult to find. But unsecured business loans will only satisfy small financing needs.
Business loans are available for most financing needs. Business loans can be used for starting a business, refinancing, expanding your business, purchase of equipments or any other commercial investment. Insufficient business funds are one of the leading causes of business failure.
Credit Damage: Getting Compensated for Your Loss
Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up their hands in sympathy, claiming victims can only be compensated for what can be measured — tangible goods and services. But, what happens when the victim has lost considerable time from work, the family bank is broke and monthly payments on mortgages, car loans and credit cards payments are missed? Regardless of the haggling between lawyers and insurance companies, it’s the credit victim who ends up having to live with a bad credit rating.
Today, there are legally accepted means for measuring loss of credit through the procedure of Credit Damage Measurement (CDM). CDM is fast becoming a potent tool for recoverable credit damage awards when the damage is not self-inflicted. Previously, both judge and jury, and especially the insurance companies, refused to acknowledge CDM claiming it was speculative because they could not define it as tangible damage. However, in case after case, victims of credit damage who use the CDM method are getting compensation for credit loss. Many factors are changing the old mindset including credit bureau technology improvements, the application of the Fair Credit Reporting Act (FCRA), risk scoring sophistication, and the development of CDM as an objective, repeatable method that measures out-of-pocket damage reliably.
Credit Ratings and Recovery
The impact of a bad credit rating is much more significant than most people think. Consider what poorly rated consumers face when they want to lease or buy vehicles, obtain credit cards, buy or lease or refinance their residence. In most cases, it’s an easy decision for the creditor: the credit application is simply turned down or the borrower is charged a much higher down payment – maybe thousands of dollars more with monthly payments that are typically several hundred dollars more.
“A person with bad credit is viewed with suspicion and is charged significantly more for future extension of credit because the lender feels the need to protect against a greater risk or default,” says Tom Key, a civil litigator practicing in Tustin, CA.
“Over the years I have heard reports of financial damages from clients who have been wrongfully terminated, defrauded, injured in an accident or suffered losses from breach of contract,” Key says. “These victims were especially distraught over the fact that their prime credit reputation, carefully nurtured for years, is destroyed overnight. It seemed to me that there must be a way to compensate victims for that type of loss.”
Key has witnessed the reactions of many jurors who failed to award a victim of credit damage their rightful compensation simply because they could not quantify the damages. “Jurors want a specific loss that they can count, hold and see,” says Key. “Their reasoning is that they need to know that it is genuine. They have a tough time awarding damages based on sympathy. In order for them to confirm authenticity of a claim, they want to see its quantification.”
Measuring Loss of Creditworthiness
Assuring authenticity has been a sticky situation when it concerns measuring out-of-pocket loss for victims of credit damage — until now. Attorneys who represent victims of credit damage are now utilizing the Credit Damage Measurement method to recover out-of-pocket losses for their clients. “CDM measures the actual out-of-pocket dollars reasonably expected from loss of creditworthiness, which includes higher down payments, higher points and costs on loans, higher interest rates, higher monthly payments, or outright denial of credit,” says Key. “In addition, the CDM method also calculates the rates, costs and other terms applicable to the resulting credit rating by lenders and projects the results over the relevant number of years for the types of loans the client is likely to seek.”
Key continues, “For example, if a client’s credit was near perfect before a triggering event, and is subsequently damaged by the event, the CDM procedure can illustrate before and after analyses, calculating the cost of the same loans with the two different credit reports, Pre- injury credit compared to Post-injury credit.” In many cases, CDM clients have already realized significant compensation. In one such case CDM was instrumental in recovering $56,000 for damaged credit reputation. “That calculation is the difference between what refinancing a $140,000 loan would have cost my client with their prior rating, and what it will cost them out-of-pocket with their damaged credit rating —measured over a seven-year period.”
Isolated Compensation vs. Repeatable Compensation
The CDM method of measuring intangible credit loss is increasingly becoming the basis of recovery for victims of credit damage. It’s changing the way judges and juries measure recoverable out-of-pocket loss, and then can compensate for loss of credit expectancy. Certainly there are still some skeptics, mostly defendants. Technically, credit damage measurement is intangible. However, CDM has proven an objective and practical procedure to calculate out-of-pocket damage for companies or families to compensate for their credit damage.
“To have this kind of measurement is an exciting complexity in our society,” says Key. “CDM is very understandable and a rather simple way to come to a conclusion of loss for the victim. If you understand the math and are an expert at reading credit reports, the calculations and recovery are undeniable. It’s a method of turning isolated compensation into repeatable compensation. It’s changing the way jurors rule on these damaging cases. Because of this method, victims of credit damage can be more fairly and more completely compensated for out-of-pocket damage.”
Today, there are legally accepted means for measuring loss of credit through the procedure of Credit Damage Measurement (CDM). CDM is fast becoming a potent tool for recoverable credit damage awards when the damage is not self-inflicted. Previously, both judge and jury, and especially the insurance companies, refused to acknowledge CDM claiming it was speculative because they could not define it as tangible damage. However, in case after case, victims of credit damage who use the CDM method are getting compensation for credit loss. Many factors are changing the old mindset including credit bureau technology improvements, the application of the Fair Credit Reporting Act (FCRA), risk scoring sophistication, and the development of CDM as an objective, repeatable method that measures out-of-pocket damage reliably.
Credit Ratings and Recovery
The impact of a bad credit rating is much more significant than most people think. Consider what poorly rated consumers face when they want to lease or buy vehicles, obtain credit cards, buy or lease or refinance their residence. In most cases, it’s an easy decision for the creditor: the credit application is simply turned down or the borrower is charged a much higher down payment – maybe thousands of dollars more with monthly payments that are typically several hundred dollars more.
“A person with bad credit is viewed with suspicion and is charged significantly more for future extension of credit because the lender feels the need to protect against a greater risk or default,” says Tom Key, a civil litigator practicing in Tustin, CA.
“Over the years I have heard reports of financial damages from clients who have been wrongfully terminated, defrauded, injured in an accident or suffered losses from breach of contract,” Key says. “These victims were especially distraught over the fact that their prime credit reputation, carefully nurtured for years, is destroyed overnight. It seemed to me that there must be a way to compensate victims for that type of loss.”
Key has witnessed the reactions of many jurors who failed to award a victim of credit damage their rightful compensation simply because they could not quantify the damages. “Jurors want a specific loss that they can count, hold and see,” says Key. “Their reasoning is that they need to know that it is genuine. They have a tough time awarding damages based on sympathy. In order for them to confirm authenticity of a claim, they want to see its quantification.”
Measuring Loss of Creditworthiness
Assuring authenticity has been a sticky situation when it concerns measuring out-of-pocket loss for victims of credit damage — until now. Attorneys who represent victims of credit damage are now utilizing the Credit Damage Measurement method to recover out-of-pocket losses for their clients. “CDM measures the actual out-of-pocket dollars reasonably expected from loss of creditworthiness, which includes higher down payments, higher points and costs on loans, higher interest rates, higher monthly payments, or outright denial of credit,” says Key. “In addition, the CDM method also calculates the rates, costs and other terms applicable to the resulting credit rating by lenders and projects the results over the relevant number of years for the types of loans the client is likely to seek.”
Key continues, “For example, if a client’s credit was near perfect before a triggering event, and is subsequently damaged by the event, the CDM procedure can illustrate before and after analyses, calculating the cost of the same loans with the two different credit reports, Pre- injury credit compared to Post-injury credit.” In many cases, CDM clients have already realized significant compensation. In one such case CDM was instrumental in recovering $56,000 for damaged credit reputation. “That calculation is the difference between what refinancing a $140,000 loan would have cost my client with their prior rating, and what it will cost them out-of-pocket with their damaged credit rating —measured over a seven-year period.”
Isolated Compensation vs. Repeatable Compensation
The CDM method of measuring intangible credit loss is increasingly becoming the basis of recovery for victims of credit damage. It’s changing the way judges and juries measure recoverable out-of-pocket loss, and then can compensate for loss of credit expectancy. Certainly there are still some skeptics, mostly defendants. Technically, credit damage measurement is intangible. However, CDM has proven an objective and practical procedure to calculate out-of-pocket damage for companies or families to compensate for their credit damage.
“To have this kind of measurement is an exciting complexity in our society,” says Key. “CDM is very understandable and a rather simple way to come to a conclusion of loss for the victim. If you understand the math and are an expert at reading credit reports, the calculations and recovery are undeniable. It’s a method of turning isolated compensation into repeatable compensation. It’s changing the way jurors rule on these damaging cases. Because of this method, victims of credit damage can be more fairly and more completely compensated for out-of-pocket damage.”
Auto Loan Options for People with Bad Credit
Internet surfers with bad credit looking for an auto loan are bombarded with advertisements most days. Many of these ads are truthful in their bad credit auto loan options. However, there are many things to avoid, and this article will describe some of those.
Directly financed auto loans for people with good credit are a bit different than those with bad credit. People with bad credit are expected to pay more of a down payment as well as a higher interest rate on their auto loans. Many creditors won’t even extend an auto loan to those with bad credit. Depending on how bad someone’s credit is, auto loans can range from a 20 – 50% down payment requirement, interest rates from 5-26%, and amortization (the length of the loan) anywhere from 2-4 years.
This may sound like a lot of bad news for bad creditors looking for an auto loan. But with some good planning and foresight, these auto loans can actually help people with bad debts rebuild their credit history.
The worst situations in bad credit auto loans show up when car dealers artificially inflate the pricing or interest rates on their cars. Auto dealers who specialize in bad credit loans will take a car normally selling for $5,000, inflate the price to $8,000, take a $2,500 down payment and then finance the purchase at 24%. Now the bad creditor will be in debt to the auto loan company for an inflated price that isn’t indicative of the vehicle’s real value. A way to counteract these types of sneaky bad credit auto loan dealers is to check the value of the car you are looking at, first, and then only pay $200-500 extra then what’s listed. Only in exceptional circumstances would you ever pay more than this for a car.
Two different ways of selling a car have emerged recently with the new, Internet economy. The first is called the ‘dealer network system’. Auto purchasers can get a loan regardless of their bad credit history with this option. Essentially, a potential customer looks at a car on a website, and then answers some basic questions if interested in buying. This information is then passed along to a dealer specializing in bad credit auto loans. Since there are no fees involved, this can be a real boon for the bad creditor looking for a decent car loan. However, with this system, there is no way of researching the auto dealership you are about to do business with.
The other new option is called an application service. In this situation, a person with bad credit applies online for an auto loan, and the financial information is then sent to multiple lenders at the same time, with the hope that one or two will be willing to take the credit risk. If the system works, several dealerships with fight for the customer, using price and convenience as their selling points.
Directly financed auto loans for people with good credit are a bit different than those with bad credit. People with bad credit are expected to pay more of a down payment as well as a higher interest rate on their auto loans. Many creditors won’t even extend an auto loan to those with bad credit. Depending on how bad someone’s credit is, auto loans can range from a 20 – 50% down payment requirement, interest rates from 5-26%, and amortization (the length of the loan) anywhere from 2-4 years.
This may sound like a lot of bad news for bad creditors looking for an auto loan. But with some good planning and foresight, these auto loans can actually help people with bad debts rebuild their credit history.
The worst situations in bad credit auto loans show up when car dealers artificially inflate the pricing or interest rates on their cars. Auto dealers who specialize in bad credit loans will take a car normally selling for $5,000, inflate the price to $8,000, take a $2,500 down payment and then finance the purchase at 24%. Now the bad creditor will be in debt to the auto loan company for an inflated price that isn’t indicative of the vehicle’s real value. A way to counteract these types of sneaky bad credit auto loan dealers is to check the value of the car you are looking at, first, and then only pay $200-500 extra then what’s listed. Only in exceptional circumstances would you ever pay more than this for a car.
Two different ways of selling a car have emerged recently with the new, Internet economy. The first is called the ‘dealer network system’. Auto purchasers can get a loan regardless of their bad credit history with this option. Essentially, a potential customer looks at a car on a website, and then answers some basic questions if interested in buying. This information is then passed along to a dealer specializing in bad credit auto loans. Since there are no fees involved, this can be a real boon for the bad creditor looking for a decent car loan. However, with this system, there is no way of researching the auto dealership you are about to do business with.
The other new option is called an application service. In this situation, a person with bad credit applies online for an auto loan, and the financial information is then sent to multiple lenders at the same time, with the hope that one or two will be willing to take the credit risk. If the system works, several dealerships with fight for the customer, using price and convenience as their selling points.
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