Own Your Loan, Don't Let Your Loan Own You

It is often said that the most effective debt management strategy is to be debt-free. But, in order to pay for your college education, you may need to take out student loans. The hope is your student loans can greatly assist in furthering your education. but there are some instances that getting student loans has lead people to be buried deep in debt.

Now, planning for successful repayment involves a certain amount of planning. The planning should start before you place your pen on your first promissory note. Just as you are making a commitment to your career by way of investing time and money in higher education, you should also make a commitment to your financial future by way of effectively managing your student loans from the beginning.

Here are some recommended tips and tactics that may help you handle your student debt effectively and repay the loans successfully.

Tip #1: Do Your Research: Always note that not all loans are the same. Some of them, such as the ones provided by the Indiana Secondary Market for instance, offer benefits during school as well as after graduation in the form of repayment incentives, while other do not.

Tip #2: Pay Attention to the Mail: Typically, every borrower receives important information regarding the student loan he or she took out.

Tip #3: Be Organized: When taking out student loan from a particular institution, it is always best to save all of your student loan documents and correspondences. This makes you aware of what exactly you've agreed, what is expected from you as a student loan borrower, and how much you have borrowed. Also, when setting up your record-keeping system, make sure you will find easy to maintain over the life of the loan.

Tip #4: Be present at All Required Entrance and Exit Sessions: When you take out student loan, you will be required to complete student loan counselling sessions. This is often considered when you first obtain the loan and upon graduation.

Tip #5: Learn to Manage Money like an Expert: It has been said that if you live like a professional while you are in school, you will live like a student once you've finished your degree. In other words, it is important that you know very well how to handle your money while you are attending school. This will help you lessen the total amount you end up borrowing, and in turn, the amount you will responsible for repaying.

Tip #6: Maintain at least Half-Time Enrolment: Considering a half-time enrolment is highly necessary in order for you to qualify for an in-school deferment. The half-time enrolment normally takes six credit hours. Regarding your school's requirements for half-time status, see your financial aid officer.

Tip #7: Take Advantage of Tax Savings: Some of the student who takes out student loans qualifies for tax credits. To see your own status, check with your tax advisor. The credits are actually based on your qualified tuition payments, and they can help reduce the amount of Federal tax you pay.

Tip #8: Start Repayment on Time: As you enter the repayment period, note that being aware of your student loan obligations is very crucial. This is where the student loan default usually happens. It occurs when you fail to pay back the loan as agreed or meet the other terms of your promissory note.

If you need further information regarding your student loans, always remember that the financial aid staff at your school is probably your most important resource. There are also some publications from federal and state governments, lenders and scholarship granting organizations, and financial ad guidebooks that are available from your local book-store.









Sunday, April 11, 2010

Student Loan Consolidation

Tired from paying interest on student loans every month, afraid of the deadline of paying back loans, there is a solution of your tensions, STUDENT LOAN Consolidation. In student loan consolidation, a student may enjoy many benefits; some of them are following below.

1. lower monthly payments 2. only one monthly payment rather than paying separately 3. Student loan consolidation rates are very low, fixed interest rate cannot exceed 8.25% at any time, coupled with national interest rates at a 40-year low. 4. For the application of student loan consolidation, you don't have to offer any credit card check or processing fees. 5. the terms and payment plans of student loan consolidation are very flexible, the provider can mode them according to your financial needs 6. While you don't need to consolidate in order to take advantage of this one, you can knock an additional .25% off your rate by making your monthly payment electronically. This electronic debit option does more than save you money - it decreases your chances of forgetting a payment. 7. The option to prepay your loan at any time without incurring a penalty

Sometimes a student got confused about the qualification of applying for student loan consolidation. But now government clears that students who are still in their grace period or cannot re pay their owe money on a student loans can qualify to get student loan consolidation or those who are still in school may consolidate their government-guaranteed loans

Today in the market, there are many companies offering student loans to the college students, but when it comes to their interest rates, they are charging very high. A student has to pay interest on their loans, every month, which is quite impossible for some due to lack of money and time. When it comes time to pay back their student loans, it can be a real burden and a distraction from their career. For those, student loan consolidation is a best deal and step to follow. In this, you don't even get low interest rates, but can enjoy other facilities including grace period of six to nine months, only one monthly payments, tension-free mind etc.

Due to existence of government sector, a student has an opportunity to enjoy the offers given by the government as they are quite competitive than private. Student loan consolidation rates is fixed and cant be changed after signing the contracts and whenever student has graduated or ceased to be a full time student, he can also enjoy the benefit of grace period of six to nine months which allows him to get employed and repay their loans easily.

Posted by Student Loans at 5:41 AM
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