When to consolidate your School Loans!

Lot's of people with school loans aren't quite sure when they should consolidate. These tips will help you decide on the right time for your situation.

There are no deadlines in the Federal Consolidation Loan program. There are several things to keep in mind, however, regarding when to do a school loan consolidation. Your loans must be fully disbursed to be eligible for a Federal Consolidation Loan. They also must be in their grace period or in repayment.

It is best for you to consolidate while your Federal Stafford Loans are still in their grace period, when they still have the lower in-school interest rate.

If you are consolidating your federal student loans during your grace period but are worried about losing your grace period, section D on the Federal Consolidation Loan application includes a question that allows you to enter your grace period end date. If a date is provided in this question, the lender won’t complete processing of the application or fund the loan until near that date. So you can apply for the consolidation loan at any time during your Federal Stafford Loan grace period, qualify for the lower in-school interest rate, and postpone the start of repayment on the debt until near the end of your grace period.

The longer you postpone funding of your Federal Consolidation Loan, however, the more interest will accrue on any unsubsidized Federal Stafford Loans (or any other federal student loans for which you are responsible for the interest) that are included in your Federal Consolidation Loan. You should also know that, while funding of your Federal Consolidation Loan is pending, interest may accrue on your Federal Stafford Loans at a different rate than the rate used to calculate your Federal Consolidation Loan interest rate.

If your loans are already in repayment, federal student loan consolidation may still be beneficial. It allows you to fix the interest rate on your federal student loans while rates are still low.

For more information...visit our website at Student Loan Debt Consolidation

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Applying for a School Loan? What you need to know about FAFSA

If you're a prospective college student and you are in need of a school loan, a Federal student loan is a good option. In order to get approved for federal financial aid you will need to complete the FAFSA. FAFSA is the acronym for “Free Application for Federal Student Aid.” Applying for Financial Aid is free and you can apply online a www.fafsa.ed.gov . Complete and submit a Free Application for Federal Student Aid which is the basis for all financial aid. Students can begin submitting their FAFSA on January 1. Here are some frequently asked questions regarding FAFSA and federal financial aid.

How do I apply for financial aid?
A FAFSA is all you need to get started.

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What is FAFSA?
Free Application for Federal Student Aid. It’s FREE!!

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Do I have to fill out a FAFSA every year?
Yes. Applications are available starting January 1^st, both paper and electronic applications.

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What is the difference between submitting an electronic FAFSA versus a paper FAFSA?
An electronic FAFSA is processed in two (2) to three (3) weeks, while the paper FAFSA takes four (4) to six (6) weeks to process.

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What is the deadline for filing the FAFSA (i.e. applying for financial aid)?

The PRIORITY deadline for FAFSA is March 2^nd. Forms must be postmarked no later than March 2^nd before the academic year for which aid is being sought in order to be considered for STATE aid. However, if the March 2^nd deadline is missed, you will still be considered for federal Financial Aid, as well as other Financial Aid programs.

You can apply for a Financial Aid through the last day of classes in Spring semester.

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How is the FAFSA used to determine my financial aid need?
The federal government uses data provided on the FAFSA to calculate a student’s Expected Family Contribution (EFC). The Financial Aid Office calculates a student’s Cost of Attendance (COA) which includes tuition, living expenses, miscellaneous fees, books, etc. COA minus EFC equals a student’s financial need, which we then try to meet with federal grants, state grants, academic or talent scholarships, institutional grants, federal work study, and various loans.

Some of the above information can be found at http://financialaid.fullcoll.edu/Frequently%20Asked%20Questions.htm
Get more information @ School Loan Consolidation

Top Financial Mistakes Made by College Students.

1. Blowing your student loan money!
Instead of using your financial aid for books, tuition, room & board, many students will choose to finance their extravagant lifestyle of partying, clothes, gadgets, and eating out. These school loans you've worked so hard to get should be paying for your education, not you social life...so use the money wisely. You'll be paying them off for many years to come.

2. Credit Card Debt!
Even responsible adults can rack up some hefty credit card debt, but students, who have no viable income besides their school loan money, and what cash mom & dad give them, have no business getting multiple credit cards. This is a recipe for credit disaster, because now students will not only have their school loans to repay when they graduate, but large credit card balances. Nellie May, the largest student loan maker, says that most graduate students have an average of $5800 in credit card debt.

3. Not Paying Your Bills on Time!
Racking up huge credit debt and not paying your bills on time is a good way to ensure that you can't purchase a car, rent an apartment or even get a cell phone after you graduate. Keep the credit cards to a minimum, and pay your bills on time to keep your good credit rating. You'll thank yourself in a few years.

4. Bad Budgeting!
Being a college student generally means living on a fixed income. Weather it be your financial aid money or money from a part-time job, or even money from Mom & Dad, the cash is usually limited and setting up a budget is important. A monthly budget doesn't mean you can't do the things you want to do, but simply a plan so you know the "must-pays" actually get paid. Figure out exactly what bills and expenses you have every month and plan for those first. Any money after that you can budget for social / recreational items like CD's and kegs.

5. Going to a College that's too Pricey!
Instead of going to your local community college for your pre-req classes and spending $25 a unit, many students feel they have to go to the 4 year university straight out of high school. Many end up returning home and going to a C.C. anyway, but attending a local school first is a good way to save money, and get those required classes out of the way cheap. After you've completed these courses, transfer to a 4 year school to complete your undergraduate degree. This will save thousands upon thousands of dollars that you would have racked up on student loans, and been paying off well into your 30's.

So many bad financial decisions students make is a result of poor financial education. Students haven't been taught by their parents or high school teachers the importance of maintaining a good credit score, paying bills on time, and budgeting income. Wise spending during the college years will ensure that the money you make after graduating will be spent on things you want, not credit card payments, collection companies and school loans.

To get more information on School Loan Consolidation and ways to lower your student loan payment, visit http://www.SchoolLoanInfo.com

What you should know about school loan debt consolidation.

What is 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. School Loan consolidation is among the most important and advantageous financial decisions recent graduates and former students can make.

Why Do Most Students Consolidate Their School Loans?

- To lower monthly payment amounts by up to 45%

- To give them an opportunity to build their credit rating

- To make only one student loan payment each month

The Scoop on School Loan Consolidation Discounts.

Why Lenders Offer Loan Discounts.

The Higher Education Act of 1965 sets the maximum interest rates and fees on student loans. This helps protect loan gouging by student loan lenders, making access to student loans relatively easy for those who are in need of financial aid. Nothing, however, prevents a lender from charging lower interest rates and fees. (The illegal inducements regulations prevent lenders from providing immediate rebates, which would be similar to paying borrowers for their loans. However, most lenders work around these restrictions by instituting a one month delay in rebate discounts, or by providing the discounts when the loan enters repayment)

Lenders offer loan discounts for competitive reasons. Originally the competition was with the Direct Loan program. However, with the repeal of the single holder rule, lenders are increasingly competing with each other for the highly profitable student loan market. If you currently have multiple student loans, you should get the proper information regarding consolidation of those loans.

Visit SchoolLoanInfo.com for more information on School Loan Consolidation

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