Government Debt Consolidation Loans – Update

jhardaway5 asked:


My leander has informed me that we would need to have his student loans consolidated before we are able to close on our house. I have already submitted the application to the consolidation company back on 12/04/2008 but they have not completed it as of yet. What do we do? We are set for closing on the house on 2/26/2009. Please help!!

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M.K. asked:


The time has come, these Alumni Loan people are saying my $50,000 debt will be a $538 per month with out consolidation, and $250 with. What should I be looking for to get the best deal

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luvlandon2006 asked:


My husband and I are struggling to pay our mortgage, two car loans, consolidation loans, two credit cards, student loans as well as medical bills for new baby. Should I see someone in a CCCS organization, or just try to stick it out for as long as I can? Our debt to income ratio is now 74%, by the way.

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Jason H asked:


I’m about to graduate, and my $50,000.00 in Student loans will come into repayment in 6 months, there’s no way in hell I am going to be able to make the payments, what can I do?
Anyone have any luck with consolidation loans or applying for a stay on some loans?

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Amy B asked:


I had several student loans from various lenders for my undergraduate and masters studies. Because I was tired of paying many payments each month to different lenders, I rushed into consolidating without knowing the facts. Now I am stuck at a much higher interest rate and will end up paying 30-40% more in the end!! What are my options at this point??? How can I get myself out of a bad consolidation?

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b.cisneros84 asked:


Currently we are in debt about 100,000.00 and my husband in the only one who works. we have two trucks we are paying for about 30,000. each. credit cards, consolidation loans, student loans. no mortgage, no air to breath. out of all the paycheck we only get left with less than 400 for a family of 3. We are considering bankruptcy but don’t know much about it. Which is it 7, 11, or 13? How long does it ruin your credit for? Can we fix it later? Help . thanx

student loan consolidation

Black R asked:


debt consolidation for student loans

student loan consolidation

Michael W asked:


When you are consolidating your student loan, what is the first thing that goes to your mind? A lot of you might say it is the interest rate. There is nothing wrong with that, in fact, as a consumer, you deserve the best interest rate when you are consolidating your loans. So, below are some tips to help you to get the best interest rate.

1. Credit

The easiest way for you to earn the best interest rate is to have a credit score of at least 660.

2. Other criteria

However, there are also other factors involve which can affect your interest rate such as your family size, the loans you are holding, future career, annual income and co-signer credit history (only needed when you are going for private student loan consolidation).

Let’s take a look at the income contingent repayment (ICR) plan. In this plan, your minimum monthly payment is just $5 and this amount shouldn’t be much of the trouble for most of you. However, you can only qualify for this plan when you have a family and you are a direct loan borrower. So, you see, there are much more involved than credit score when you are talking about the interest rate for your student loan consolidation.

3. Amount and period

The more loans you consolidate and the longer your loan period, the better rate you can get. However, this is not something worth cheering of. Although you can enjoy low interest rate, you are actually paying more at the end of your extended loan period.

4. Federal or private

As you probably know, federal loan consolidation doesn’t care what your credit score is, it merely locks in the lowest interest rate for the whole loan period. Since the interest rate for federal government student loan consolidation is review at July, 1 every year, it is best that you consolidate your student loans after that.

Although private student loan consolidation rate can fluctuate with the market rate, this means that you can negotiate your interest rate with the private loan consolidators. You can even enjoy lower rate when you and your co-signer credit history are good. Besides that, private loan consolidators also offer various discounts and incentive so that you can save some money even you are not eligible for fixed interest rate.

5. Online services

Speaking of discounts and incentives, more and more loan agencies are willing to give you a better student loan consolidation interest rate when you adopt their online services.

And to minimize long hauling discussions, a lot of loan agencies are starting to display their repayment package and interest rate online. This can save you a lot of time when you are researching which loan institution to go to.



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Groshan Fabiola asked:


The White House and the Department of Education have also proposed changes on student loans that would set new standards for universities and ban lenders’ marketing practices that have resulted in some payoffs to university officials.

The 225 page report on the US department of education student loan places emphasis on more aggressive policing of the $85 billion student loan industry. The new policy comes in the wake of efforts by different states to promote more ethical practices in the disbursal of student loans.

The proposed regulation will cover only federally guaranteed loans. A guaranteed student loan is a loan given to a student but which the Government guarantees. In a guaranteed student loan plan, the government is responsible for payments on the student loan. So, if a student fails to make the payments than the Government need to pay the lending agency the amount of the student loan.

The proposed regulation identifies specific practices in student loan disbursal that will be barred. This includes “offering, directly or indirectly, any points, premiums, payments or other benefits to any school or other party to secure” student loan volume in the federally guaranteed loan program. According to the new regulation, lenders who offered inducements would run the risk of losing the federal guarantee on student loan amount.

The House has already passed a version of the Student Loan Sunshine Act, and the Senate is expected to include similar restrictions on lender-college relationships in the Higher Education Act.

In the meantime, New York State has already passed legislation that governs student loan lenders. It was the first state to do so. The Loan of Conduct that now governs student loan disbursal in this state bans colleges from receiving anything valuable from a student loan company including all expenses paid trips to exotic foreign locations. Student loan officers also cannot accept anything of value for serving on a lender’s advisory board.

The need to draft a code of conduct for alternative student loan became essential because of the high competition between different student loan lenders. A lot of lending agencies were offering incentives to educational institutions so that they can be on the preferred list and gain an advantage on student loan disbursal.

The new rules on student loan announced will be published in the Federal Register and is also available on the Department of Education website.

For more resources about Loan consolidation or even about School loan consolidation and especially about Student loan please review these links.



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Johann Erickson asked:


Debt consolidation loans can help you with many of your bills and reduce your payment into one low monthly payment. Before you decide to take this step you should learn what the company is offering and what bills can be included in the consolidation loan.

All unsecured debt such as collection agency debts, personal loans, medical bills, credit card debt, and student loans can be included in a consolidation loan. A consolidation loan gives you one monthly payment instead of several. With a consolidation loan: You will not be paying interest on each debt separately. Your late fees will reduce or will completely disappear. You will not be receiving telephone calls from creditors. You will be protecting your credit rating What happens when you consolidate? The lending company that you have chosen to help you with your debt will contact every one of your creditors and work out the details on receiving a lower payment. The lending company then will pay each creditor monthly on your behalf. They will compile all of your debt together and extend the loan, the lower payments now will help you with having more money, but you will be paying off your loans for a longer amount of time.

The lending company will combine your total debt and give you a loan for this combined amount. This can help because you now will only be paying interest on one loan instead of several.

The lending company will also be able to extend the amount of time the other loans are due. This means, that if your loan was due to be completely paid off next year the lending company will be able to extend that loan and give you lower monthly payments. This has its ups and downs. Since, the loan will take longer to be off you will be in debt for longer, for that particular loan. So, you may not have that student load paid off when you had hoped. But, you will be paying less over a loner period of time.

When you are searching for a company for a consolidation loan you should understand that interest rates do vary from state to state. You should read all the fine print concerning all of the fees and rates. Some companies may still have fee or penalties, which may increase your debt.

With the internet today, you will see several companies that offer debt consolidation loans. You can shop around online and in your local town to find the perfect consolidation loan for your situation. If you are comparing lending companies around your local area ask questions, be sure you can combine your debt into one monthly payment. Talk with them and understand what secured and unsecured debt is and if consolidating your debt will help in your personal situation.

If you are searching for lending companies online for a debt consolidation loan be sure to that the website is in fact secure. Look on their website for an actual address and telephone number. If they are a legit company this information should be listed on their site. So, if you are in doubt or have questions you can call and talk with a real person.

A consolidation loan has helped many individuals and families get back on track when their debt has caused them many problems. The lower payments will help you get your debt under control and save you money from the interest rates, late fees and penalties, not to mention saving your credit rating. So, check into how a consolidation loan can relieve your stress from creditors and give you the time needed to get your finances back on track.

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