Need a plan for my school loan debts
Date: Sun, 07/23/2006 - 19:51
Need a plan for my school loan debts
I don't have a lot of credit card debt (one or two), however, I do have debt (school loans)and I am not quite sure of what other kind. I want to pay my debts but I don't know how to go by doing it with my salary. I need a plan and I am willing to stick with until the matters are all cleared. Will you help me?
I think the counseling would clear all your confusions. Ask all
I think the counseling would clear all your confusions. Ask all your queries to the counselor; try to gather all the paper works you have for your loans. The counselor can help you work out a payment plan that goes with your income. BTW, you can pull your credit report to know what the other debts that you owe are.
FYI
Consolidate and Save
Both parents and students are eligible to consolidate student loans. When you consolidate your eligible student loans, including Federal Direct Student Loans, at a lower rate with an extended payment term, you may be able to reduce your monthly student loan payments by almost half.
Lowering your monthly payments to fit your budget may help avoid late payments and free up money to pay for other monthly expenses. If you are buying a home, your monthly expenses are carefully considered when applying for a mortgage. Having a lower payment after you consolidate your loans can make a considerable difference.
Lock in a Low Fixed Rate
The interest rate for a Federal Consolidation Loan is the weighted average (weighted average is determined by the current balance and current interest rate of each loan that is being consolidated; the higher the balance, the greater the "weight" is placed on the interest rate of that loan) of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent. This rate is fixed and cannot exceed 8.25%.
Depending on your lender, you may also enjoy interest rate reductions for on-time payments and automatic payment deductions.
No Application Fees or Credit Check
With a Federal Consolidation Loan, there are no application or processing fees. A credit check is not necessary for your application to be processed. In addition, there are no pre-payment penalties.
To apply for a Federal Consolidation Loan, speak to your lender.
Loans Eligible for Consolidation
Subsidized Federal Stafford Loans
Unsubsidized Federal Stafford Loans
Parent Federal PLUS Loans*
Graduate Federal PLUS Loans
All Federal Direct Student Loans
Federally Insured Student Loans (FISL)
Federal Consolidation Loans (if you have an additional loan that is eligible for consolidation)
Perkins Loans [formerly National Defense/Direct Student Loans (NDSL)].
Federal Supplemental Loans for Students (SLS)
Health Education Assistance Loans (HEAL)
Federal Nursing Student Loans (NSL)
*Parent Federal PLUS Loans taken out on a dependent's behalf can be consolidated with the existing eligible student loans of that parent. Parent Federal PLUS Loans cannot be consolidated with the dependent's student loans.
Loan consolidation allows you to make one monthly payment (instead of several payments to different lenders) to extend the term of your loan and reduce your monthly payments. It's a repayment option worth exploring.
Speak to your lender regarding loan consolidation and finding the repayment option to suit your current financial needs. Repayment options include Level, Graduated, Income-Sensitive and Extended Repayment Plans.
