Student Loan Consolidation Plans

[ Bookmark this page! ] [ get HTML Version ]

Debt Settlement - Why critics are wrong
After October 17, 2005, a lot of people are going to become interested in debt settlement as an alternative to bankruptcy. That's the date the new bankruptcy law goes into effect, and it means a rude awakening for many consumers seeking a fresh start in bankruptcy court.

It used to be that 7 out of 10 people filing personal bankruptcy were granted Chapter 7 status, where the unsecured d... Read debt consolidation article



Credit Card Debt Management
Yes today's world, business, personal and financial which ever aspect you may take, it operates on credit cards. You have personal credit cards, then you have corporate credit cards and then you have business credit cards. You have credit card for every need. But, in the same breath as we named the different kinds of credit cards, we can also name the different kinds of debt these credit cards get... Read debt consolidation article



Student Loan Consolidation Plans
With tuition increasing at a rate greater than the cost of living, college students are depending more and more on student loans to help with the costs of higher education. Over the course of four or five years or longer in the case of graduate students, this adds up to many loans. Whether the loans are from the same lender or program or from different lenders and programs, most student loans can be consolidated under the Federal Direct Consolidation Loan. Consolidating your student loans can occur at any time after you take out your first student loan. The benefits, at least at the moment, are that you only pay one lender and there are several repayment plans to accommodate your financial situation.

Federal Student Loan Consolidation Plans

There are 4 consolidation loan repayment plans with fixed interest rates to choose from:

* Standard Repayment Plan:

The Standard repayment plan takes the shortest amount of time to repay. The interest is fixed and the monthly payments are fixed at a minimum of $50 for a maximum of 10 years.

* Extended Repayment Plan:

Under this plan the borrower pays fixed monthly payments that are less than the Standard plan. The repayment period can range anywhere from 12 to 30 years depending on the total amount borrowed. While the monthly payments are less, the total amount repaid is greater than the Standard plan because more interest accrues.

* Graduated Repayment Plan:

Another option that might work well for those who expect their income to increase gradually over time is the Graduated Repayment Plan. Rather than a fixed monthly payment for the duration of repayment, monthly payments increase every two years. Similar to the Extended plan, the repayment period varies from 12 to 30 years depending on the total amount borrowed

* Income Contingent Repayment Plan (ICR):

The Income Contingent Plan is more flexible than the other 3 plans because it considers the borrower's adjusted gross income, family size and the total amount borrowed when calculating monthly payments. The repayment period is a maximum of 25 years. Any unpaid portion of the loan at that time is discharged, but taxes must be paid on the discharged amount.

When choosing a plan, consider your financial situation and what it might look like in the future. Paying off your student loans sooner may be the best option for you, but you may have other financial considerations to make and need to keep more of your hard earned money for your current living expenses. Whatever the case may be, look at each plan carefully and consider how it will affect you now and in the future.

The author of this article runs OpinedMind.com and is currently a Ph.D. student writing articles on the issues of financing college and debt management based on personal experience and many hours of research.

What do you want to do?
Bookmark this page before you lose it
Search this site for FREE information
Help spread the word. E-mail this page to a friend

Debt Consolidation - Good or Bad

If you're still in high school, as rich as Croesus or a favorite of Lady Luck, perhaps the term debt consolidation wouldn't even ring a tiny bell to your ears. But if you're like the rest of us, with a huge number of bills to pay month after month, creditors to alternately hide from and beg, then I'm sure you know what debt consolidation is all about.

But just for the heck of it, let's assume that one of this article's readers has been sleeping under a rock and has no idea what we're talking about. But the fact remains that he does need a little help financially. Well, debt consolidation is the process of accumulating your bills for one month, adding them up and giving them over to the kind debt consolidation specialist who's willing to help you for a teensy weensy price. Instead of paying off some, disregarding the others, you get to pay just one flat rate every month and that's it. Finish. Sounds wonderful right?

And because I'm a good person, I'll discuss the merits of debt consolidation and the numerous ways it can help you.

The first important thing that debt consolidation can help you with is getting your creditors, bless their nagging souls, off your already aching, heavily burdened back. We all know how these creditors can be nasty at times. They're good at semantics and etiquette, I'll give you that, but a threat is still a threat, albeit nicely worded. The phrase "to avoid taking legal actions" never cease to make us shudder, doesn't it? But that's when debt consolidation come in to help you. With your permission, they take charge of your creditors. You need not see them again anymore. Big help right? Big, big help!

Now, the next form of help that debt consolidation companies provide you with is part of the program you'll be working on with whoever your debt consolidation specialist is. One of the questions they'll ask you is just what kind of help do you need. Do you want your monthly payments to be significantly lowered? Do you need help to keep your interest rates low? Do you require help in talking your bank manager into giving you an extension on the deadline of a loan you've taken? The help you'll get from debt consolidation depends on the program you're going to take but rest assured that what you want, you will get.

It's not however a bed of roses with all debt consolidation companies. Sometimes, they help you the other way around. If you had the misfortune to make business with an unscrupulous debt consolidation firm, then that firm may just help push you into further bankruptcy. One way to avoid this is not choosing online debt consolidation companies and not releasing classified information about yourself unless needed.

I've said this before but I've said this again. In the end, it's what you want that matters. Those outstanding bills do not signify the end of the world for you. Where there's a will, there's always a way, albeit sometimes rocky. You alone can help yourself and if you think debt consolidation is the way to do it, then so be it. But if you're hesitating a bit and you think that you're better off without external help and relying on yourself, then that's a good thing too.

John Collins manages Debt advice. A site dedicated to helping people with debt.


Top rated articles for debt consolidation

1. Debt Consolidation Company - How to choose one
1. Debt consolidation is not always a loan. Debt consolidation, by definition, means to lump all your debt into one manageable payment. Many people confuse a loan-based consolidation program with cred... Read debt consolidation article

2. Government credit repair
If you are building a credit history, suffering bad credit or else your credit is great, there are sources available that will help you maintain credit, repair credit, and build credit history. If you... Read debt consolidation article

3. Different ways to consolidate debt when bills pile up
When it comes to debt consolidation some people dream of day when all their bills will disappear. Next to hitting the jackpot, a debt consolidation loan is some times the only way out for a debtor. No... Read debt consolidation article

4. Credit building ideas
There are several ways that we can build credit. If you are tired of collectors hounding you, or if you are frustrated that no one will loan you money because you never had credit, it is time to learn... Read debt consolidation article

5. Debt counseling and frugal living
The opportunities for spending money nowadays are unlimited. Too many people find themselves too strapped to pay their bills on time and complain when their bi-weekly salary is paid a couple of days l... Read debt consolidation article

6. Methods of student loan debt forgiveness
In principle, student loans cannot be forgiven totally; however there are methods to pay off these loans by providing certain services.

There are several socially benefiting jobs that a stu... Read debt consolidation article

7. Become Debt Free
I am sure you know the problem, every month counting the days to pay day, worrying about your finances. I think that just about everyone at some point in their life has experienced this.

Un... Read debt consolidation article

8. How to choose the right credit counseling agency
Credit counseling companies come in all shapes and sizes. Whether you are looking at working with a local credit counseling organization or a national credit counseling organization there are some ver... Read debt consolidation article

9. Debt Consolidation Solutions and Quotes
Debt consolidation is not a loan. It is a process where you work with a Debt Repayment Representative who negotiates with your creditors on your behalf to reduce your interest rates and may even be ab... Read debt consolidation article

10. Debt counseling solutions and credit repair
Is debt counseling a solution for credit repair? Debt Counseling Services and Credit Services are Organizations that are sponsored by most of the creditors. Most Debt Counseling services are nonprofit... Read debt consolidation article

1. Debt consolidation services - Things to watch out for with debt counseling companies
2. Debt consolidation - How to go about planning
3. Debt settlement services - What you must know
4. Credit Counselor for Trimming Your Credit Card Debt
5. Debt consolidation solutions - What not to do
6. Debt Management Secrets Revealed
7. Student Loan And Debt Settlements
8. Why pay for fixing credit
9. Is your credit card payment rising
10. When Debt Collectors Cross the Line - Bogus Threats and Illegal Tactics

Debt consolidation, debt counseling and debt management in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,



Student Loan Consolidation Plans
Debt consolidation, debt counseling and debt management services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,

Debt management, debt counseling and debt consolidation in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.