Student Loans

How to deal with education loans after school

Managing and repaying your student loan debt after school is a headache, to say the least. Not only are you juggling the demands of daily life and trying to pay for all associated costs of living, but you have a sizeable amount of debt breathing down your neck. Consolidating your student loans under one loan may be a step in the right direction toward simplifying your life.

Consolidation

Often the sum total of a student’s debt is divided between more than one student loan. Simply put, student loan consolidation is the process of combining two or more student loans into one loan. Consolidated loans usually have lower monthly payments and interest rates, and longer loan terms.

The government has special services and processes for combining government-issued student loans. As a result, it’s much easier to consolidate federal student loans. Private student loans cannot be consolidated with federal student loans, as the benefits designed for federal loan consolidation are meant specifically for federal loans. To consolidate private loans, students must consult with private borrowers to negotiate their loan consolidation.

Student loan consolidation is a good idea for the following reasons:

  • Easier to manage. You only have to make payments on one loan. This eliminates the hassle of having to manage different payment amounts and loans.
  • Fixed interest rates. Many loans have variable, or floating, interest rates. Variable interest rates can be beneficial when rates go down, but equally detrimental when they go up. It’s best not to gamble on interest rates, especially since increasing interest rates may result in a significant increase in the amount you have to pay, especially if your loan is large or you are repaying over a long period. When negotiating your loan consolidation, you often have the option of securing a fixed interest rate, which will bring a degree of certainty to your repayment planning.
  • Flexible monthly payments. When you consolidate your loans, you can renegotiate your repayment terms to more accurately reflect your repayment capability.

Keep In Mind…

When consolidating your student loans, it’s important to remember to manage your loan smartly. Like any loan, a longer repayment term increases the total amount you have to repay. Consolidated loans may allow lower monthly payments over a longer period, as well as lower interest rates, but you will end up paying more in the long run if you maintain low monthly payments. Pay off your loan as quickly as possible to avoid paying unnecessary interest.

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I would not recommend anyone over 35 taking out a school loan. You will not reap a financial benefit from your education. After receiving my degree, I was offered same pay as without it because I needed to prove myself. Now I have huge loans outstanding and can't find work. Govt does not want to help you, only control you. I can't even find out my balance because NSLDS.ed.gov site won't work.
Posted on 12/13/2009 8:40:00 AM by Anonymous
my question is my son still has a loan hanging 15 years after graduation..it seems to be receding VERY slowly.He withdrew from iUniversity several times due to a chronic illness and I his mother was unaware of the loan continuing to accrue... $25,000.00 which I assume is almost entirely interest as his college fees 15 year were minimal. He has been employed steadily the past three years and loves his job but the stress of payments still looms. What can be done about this?Would MD letters help?
Posted on 12/4/2009 8:11:00 AM by Anonymous
I am a college student trying to apply for student loans.
Posted on 9/28/2009 5:34:00 PM by Anonymous
It is nice to get student's loan and pay it back quickly
Posted on 9/1/2009 10:30:00 AM by Anonymous
I know that I'm in default with my student loan, at this time I just started paying on it. I plan to go back to school. but I cant until this is paid off or is satisfied with the payment arrangement. Is there any way that I can start school at the same time and pay this off. or be eligible for different loans like pell grant or something what can i do
Posted on 8/23/2009 2:18:00 PM by Anonymous
I am in debt with student loans there was a period during 1996 1994 I was unable to go to school because I was diagnosed with fibromyalgia . The school I attended encourage me to stay in school because it would be hard for me to re-enter because of this I owe an astronomical amount of over $200,000 I do not make enough money to pay 4,5,or even 6,000 month to pay off loan what can I do I work in a low income environment with population of welfare clients in the healthcare field I am distraught
Posted on 8/22/2009 6:48:00 PM by Anonymous
Student loans and parent plus loans should never go over 2.5% interest when this money is used to further one's education, no matter what the American economy is doing!!! NO loans to foreigners - NEVER!!!!
Posted on 8/20/2009 1:21:00 PM by Anonymous
Is there any help from President Obama concerning loans in default? I am one semester short of my Bachelors Degree and ran out of money. I am an artist and private teacher and can barely live on this income, I am also an older student due to raising two children and going to college in later years. There is no way that I can even begin paying loans back when I am just trying to survive.
Posted on 8/19/2009 8:19:00 AM by Anonymous
My name is Emmanuel Ochieng doing my second year in B. COM. at JKUAT not been able to continue due to lack of tuition fees. I request for loan of about K.Shs. 210,000.00. Thank you
Posted on 8/18/2009 4:57:00 AM by Anonymous
@Anonymous on 7/18/2009 - It's a comment section, not a question and answer section.
Posted on 7/21/2009 1:46:00 PM by Anonymous
It would be very helpful to see some answers to these questions. Why comment if there is no answer from an expert?
Posted on 7/18/2009 12:44:00 PM by Anonymous
i have a student loan through sallie mae. when i got the loan for my son they told me to apply for him and i would be dinied and then he could apply himself.wellto my supprise they accepted my loan even though i am on disability. this was in 1996.i have been unable to pay it back due to my financial situation and have repeatedly had to put it in forbance.the intrest is just piling up.it is up to8294.00and soon to be over 10,000.00. what if anything can i do toget rid of this debt.ther isnt any way i really can afford this.
Posted on 7/15/2009 7:25:00 AM by Anonymous
I was an active firefighter for 9 years in NY and was permanently disabled in the line-of-duty in 1989 (20 years ago) resulting in the amputation of my right foot below the knee. I continued to be an active volunteer firefighter in Freeport, NY until I graduated college in Dec. 1997 (11.5 years ago). I have been paying my student loans since then and am at $21,000 in my balance. I am currently an 8th grade Science teacher in Plant City, Florida and have been teaching Science for over 10-years. Is there any way I can get help with my Stafford loans? Thank you.
Posted on 7/14/2009 2:06:00 PM by Anonymous
I am interested in finding out if I can forgive a portion of my student loan or consolidate my loans with a lower interest rate. I look forward to your response. Valerie Mick
Posted on 7/12/2009 3:42:00 PM by Anonymous
My husband and I are both 70 years old> We have been paying on a consolidated PLUS loan for several years and even though we are current on our payments, the blance owed is still more than we borrowed. Is there any hope for us as far as forgiveness of loan?
Posted on 7/9/2009 9:58:00 PM by Anonymous
where do i beging to find out about loan foregiveness programs
Posted on 7/9/2009 10:21:00 AM by Anonymous
I am 54 years old and have been paying on a federally funded school loan for over 14 years. I work in public service (Veterans Administration). Can I apply for the loan forgiveness? I am nearing retirement and could use the money to put towards retirement. I have been employed in public service for nearly 30 years.
Posted on 7/2/2009 11:14:00 AM by Anonymous
Are you sure that the government will nor refinance student loans originating from another source as of July 2009?
Posted on 6/17/2009 10:14:00 AM by Anonymous
Is there someone that I am able to contact regarding Student Loan Relief?
Posted on 6/1/2009 3:33:00 PM by Anonymous
I need a Loan Forgiveness for the fact I am disabled, the fact that the Boss of the JOBS Program sanctioned me during School which forced me to seek money to live on (and I won the case) and the equipment at the School was so seriously out dated could never be an instruction guide to a real job in that present time and I was opened and honest about my health being that I was already disabled since age 19 but had called and told SSI I would try to work on my own and my SSI was cancelled without approvel from Social Security. there is more, but... moore.terryjane@yahoo.com
Posted on 5/28/2009 12:08:00 AM by Anonymous
some people are so imature, and yeah it would be helpful if colleges listed loan percentage rates to freshmen. I like that idea
Posted on 5/5/2009 10:20:00 AM by Anonymous
it would be helpful if colleges listed loan percentage rates on their financial aid letters sent to prospective freshmen. It would also be helpful if the letter explained what the loan means to the student... like "You'll be paying $126 per month (for the $11,000 in unsubsidized loans you've qualified for over the four years of college) starting six months after graduation. You'll need to be earning at least 15K per year to afford this loan.
Posted on 4/9/2009 11:17:00 PM by Anonymous
how to consolidate parents' loans for their child's college education
Posted on 3/23/2009 4:13:00 PM by Anonymous
Do have to pay student loans if I go back to school?
Posted on 3/22/2009 3:52:00 PM by Anonymous
I think that all student loans should be able to be consolidated. It is stupid that some you can and some you can't and because the economy is bad lenders do not want to help you out
Posted on 1/8/2009 11:59:00 PM by Anonymous
i have a very specialized case with a student loan that was stolen from me when my school closed down before i completed. im left holding the bag (debt). HELP PLEASE
Posted on 11/26/2008 11:29:00 PM by Anonymous
I do understand about paying back any student loan that I take out.
Posted on 11/18/2008 4:57:00 PM by Anonymous
i understand
Posted on 10/29/2008 6:05:00 PM by Anonymous
purchasing a car that will get me thru 4 years of college $3000.00 4 years of college for criminal justice/investigative services $120,000.00 attending your own graduation and receiving a piece of paper stating your earned a Bachelors in Criminal Justice: priceless
Posted on 10/17/2008 11:02:00 AM by Anonymous
I understand that I have to pay these loans back after I graduate from college.
Posted on 9/8/2008 4:54:00 PM by Anonymous
Thanks for the info.
Posted on 9/3/2008 5:24:00 PM by Anonymous