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where i can get guide of student loan consolidation?

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3 Responses to "where i can get guide of student loan consolidation?"

  1. Justin says:
    see here http://sx-girl.blogspot.com/2008/06/guide-for-student-loan-consolidation.html
    confirm will help you get the answer…
    good luck…;)
  2. Found-1 says:
    Guide:
    Don’t do it. You’ll regret it. Instead of paying for 10 years, you’ll pay for 30 and if you have federal and private loans, you won’t be able to combine them… STILL making you make more than one payment. Isn’t that the whole point? Not a benefit at all.
  3. NotAnyoneYouKnow says:
    Found is right – student loan consolidation has an obvious appeal, but you absolutely MUST learn what it means to consolidate and you must fully understand, not just the appealing advantage, but the very significant disadvantages.

    The fact is – consolidation makes a lot more sense if you need to get a handle on some out-of-control credit cards. If you have credit cards with 21.99%, 27.99% or other outrageously high interest rates, you MAY be able to consolidate those credit card debts with a single loan that carries a much lower interest rate. That COULD save you some money.

    But, take a good look at your student loans. Unless you have some very unusual student loans, you’re looking at interest rates like 6.0%, 6.5%, maybe 8.5%. Though your payments may make it feel like you’re paying an obscene amount of interest – the rates on student loans are about the lowest that a plain-old-ordinary person could ever hope to qualify for – especially a plain-old-ordinary person who probably doesn’t have an extensive credit history and a sterling credit score. (You know, like most new college graduates)

    The point? Whatever consolidation loans you find to consolidate your student loan debt will NOT offer you anything significant in the way of a lower interest rate. Remember – that’s one of the key PLUSses when you’re talking about consolidating credit card debt. It doesn’t apply here.

    So what does happen with a consolidation loan? Make sure you understand exactly how this works….

    Your monthly payment will go down. Absolutely. A lot? Maybe. What determines how much your payment goes down?

    How long you stretch the repayment term on your loans. You’re paying less each month for pretty much one reason only – you’re going to make a LOT more payments. By the time you add together all of those payments, you’re going to wind up paying MANY TIMES MORE than you would if you didn’t consolidate.

    I can’t tell you how much more YOU’RE going to pay, because I don’t know how much you’re thinking of consolidating, and I have no idea what interest you’re paying now, and how far along you are in paying back the principle. But we can look at an example:

    Suppose you have 2 Staford loans – let’s say a $20,000 unsubsidized loan at 6.5% interest and another $15,000 subsidized loan, also at 6.5% interest. Right now, your monthly payment would be about $260 a month on a typical 20 year payment plan.

    Now let’s say you decide to consolidate. Sallie Mae offers a whole variety of consolidation loans – let’s pick a decent one at random. Here’s one – $236 a month. Hmm..not much of a savings, huh? But anyway, every little bit helps, right? Even that $24 savings a month can go towards something else.

    So let’s look at our long term costs:

    You’ll pay that $236 consolidation payment for 25 years, instead of 20. Over the course of those uh…300 payments (ouch!), you’ll pay a grand total of $70,896. Geez – remember that $35,000 you borrowed?

    And if you didn’t consolidate, and paid just $24 a month more? Well, you’d finish paying your loan back 60 payments earlier, and your total repayment would be $62,628.

    I don’t know if you can think of anything worthwhile to do with that $8,268 difference in payments, but I sure can.

    There’s something else to know about consolidation loans. Your original loan probably has all kinds of special benefits – many student loans will give you a interest rate cut after you’ve paid the loan for 12 consecutive months, maybe another one a year after that – over the long term, paying back these loans will save you a bunch of bucks.

    Do consolidation loans offer rewards like that? Nope.

    You may also know (or maybe you don’t) that your student loans have forbearance and deferment options. Maybe that’s what you should be checking out. If you can’t afford to pay, just go online or pick up the phone and tell your loan servicer, “Hey, I want to postpone payment for a year.”

    They’ll say, “Okay.”

    Consolidation loans? Nope.

    Is it within the realm of possibility that a consolidation loan might make sense for you? I guess.

    Is it likely that you should take the consolidation option very seriously? Not a chance.

    You should absolutely research this for yourself – but before you make ANY decisions, make sure that you demand that your consolidation lender shows you EXACTLY what your payoff schedule is going to be, and EXACTLY how much more it will cost you, over the life of the loan, to consolidate. I’m betting you won’t be attracted by what you see.

    Good luck to you!

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