Welcome to Student Loan Debt Directory
Debt Elimination Article
For a permanent link to this article, or to bookmark it for further reading, click here.
Obtaining and Refinancing Your College Loan
from:How many of you are biting your nails trying to figure out what you should do to get your college paid for You know you need a loan... but what kind What are the differences Would it be a good idea to refinance or consolidate any loans you already have Is this the right time How much do you really need What do college loans cover If youre wondering about these things, please read on.
Before you run out and get a college loan, you first need to know how much of a loan you are going to need. Of course, the obvious part of the loan is your tuition and the cost of your courses. But there are many other things that you may need to have covered through your college loan. This can be your room and board, school supplies, lab supplies, books, etc. But this just pertains to your actual schooling. There are other things you need to take into consideration.
This can be car insurance, gas, transportation, health insurance, food, etc. You need to add all of these factors up for each year. Then, multiply it by how many years you are to be in college. This will give you a rough estimate of how much money you will need.
Some college loans can be used for anything. The lender couldnt care less as long as you pay it back. If you plan on getting a part time job, you can count on part of your paycheck being used towards things that your college loan does not cover. However remember youll need to keep part of your paycheck to pay your monthly college loan payment!
Now we shall go over the several types of college loans out there. A little later, I will explain about refinancing a college loan.
First, we will go over federal student loans. These college loans can either be subsidized or unsubsidized.
Subsidized loans are when the government pays the interest of the loan for the students. You must show that you are in great financial need in order to get this type of loan.
Unsubsidized loans are when the student must pay the interest, but the interest is not deferred until after graduation. Anyone can get an unsubsidized loan. Both of these types of federal student loans are the most commonly used.
The next are private student loans. Private student loans are given to someone with a good credit score. They can be used for anything, not just the cost of tuition. They are also unsecured. This means they require no collateral, but they have extremely high interest rates.
Now, we go to for parent loans. As you guessed, this is a loan that parents can take for the full amount of the college tuition. You just have to hope mommy and daddy are willing to do this for you! The payoff rate and interest rate is much lower with this type of loan, often because parents have good credit and the funds to pay the loan off.
Now we come to consolidation loans. This type of loan is used to consolidate all of a student's loans together so they can be paid off in one easy payment plan to one lender, rather than having several payments to several lenders. Many students end up getting this type of college loan after they made the mistake of getting too many college loans at once.
Those of you, who do already have a loan, may be interested in refinancing. Refinancing college loans often seems like a good idea, and it is...if you use it to your advantage. I'll explain that in a minute. First, you need to understand a few things. Most college loans are of a variable percentage rate until the rate is locked. You lock a rate by means of a loan consolidation or by refinancing. When rates are very low, it generally is a good idea to attempt to get your loans or loan consolidated or refinanced.
Before you can even think of refinancing, you must know that is only offered to you good people that have always made their monthly loan payment on time. If this does not sound like you, then I wish you good luck trying to refinance!
Refinancing rates are usually one or two percent lower than your original college loan rate. Refinancing rates can save you up to 60 percent. But this is where the possible drawback is and most people simply don't realize.
The drawback is a hidden one - that most people never see. In order to get your college loan payment lower through refinancing, you are given a much longer time period to pay the loan off. Instead of 5 years to pay it off, it can turn into 20 years to pay it off! This may sound good to you in the beginning. At the time, it will leave you with extra money that you may be in need of for other bills. But in the long run, it just costs you more money because you will be paying interest much longer to the lender. In fact, it can cost you thousands more!
The smart way to do it is after you refinance and obtain the lower rate; pay more towards the monthly bill. This way you will pay off your loan much quicker than normal and at a cheaper rate. But only put more towards paying it off when you can afford it. Remember you refinanced your college loan because you couldn't afford the payment to begin with. So now youve refinanced just pay off your loan as best you can at your own pace, bearing the above in mind.
For More Information On Student Debt Help, Go To The Following Link Below:
Debt Relief Solutions
Debt Elimination News
Liberals vow to eliminate tuition, tax the rich and corporations - Edmonton Journal
Liberals vow to eliminate tuition, tax the rich and corporations Edmonton Journal The sweeping platform outlined a long list of ambitious promises including a plan to eliminate tuition and student debt. Sherman pledged to immediately cap tuition and provide additional funding that would allow schools to decrease tuition by $250 a ... |
Glatfelter Reports Record Sales for Fiscal 2011 - MarketWatch (press release)
Glatfelter Reports Record Sales for Fiscal 2011 MarketWatch (press release) Represents the after-tax costs related to a debt refinancing including debt redemption premium and the write-off of unamortized original issue discount and deferred debt issue costs. -- Represents severance costs for the elimination of 60 positions at ... |
Debts That Can't Be Wiped Out in Bankruptcy - Fox Business
Debts That Can't Be Wiped Out in Bankruptcy Fox Business In last week's column, I discussed some common debts that could be eliminated in a bankruptcy filing. To keep it even, I'd like to talk this week about some debts that can't be discharged in bankruptcy. You are able to file bankruptcy without an ... |
Mueller Industries, Inc. Reports Fourth Quarter and Fiscal 2011 Results - MarketWatch (press release)
Mueller Industries, Inc. Reports Fourth Quarter and Fiscal 2011 Results MarketWatch (press release) As of year-end, the debt to total capitalization ratio was 18.8 percent. Capital expenditures during 2011 totaled $18.8 million. The Company has improvement projects underway which will increase funding of capital expenditures significantly over the ... |
LGUs, NGOs ink pact with ILO to eliminate child labor - Philippine Information Agency
LGUs, NGOs ink pact with ILO to eliminate child labor Philippine Information Agency The law seeks to eliminate the worst forms of child labor such as sale and trafficking of children, debt bondage, serfdom, prostitution and pornography, use of children for illegal activities—including drug trafficking, and any work that is hazardous ... |
MBTA cuts would limit student access to Boston - The Brown Daily Herald
MBTA cuts would limit student access to Boston The Brown Daily Herald The report also proposes eliminating the acceptance of tokens as fare payment and reducing the expiration of commuter rail tickets from 180 to 14 days after purchase. Since its last fare increase in 2007, the MBTA has attempted to combat its debt ... |
Getting financially fit - Port Huron Times Herald
Getting financially fit Port Huron Times Herald Patty Ledezma, left, regional vice president of Primerica in Port Huron, discusses a debt-free household as Lori Gall, of Port Huron, takes notes Monday at the debt elimination seminar at Palmer Park Recreation Center in Port Huron. |
DST Systems, Inc. Announces Fourth Quarter 2011 and Annual 2011 Financial Results - MarketWatch (press release)
DST Systems, Inc. Announces Fourth Quarter 2011 and Annual 2011 Financial Results MarketWatch (press release) At December 31, 2011, the Company's total debt outstanding was $1380.3 million, an increase of $105.6 million as compared to September 30, 2011, primarily from the funding of the ALPS acquisition. Total debt increased $170.9 million during 2011. |
Daniel Borenstein: With $2.4 billion Contra Costa retirement debt, no one ... - San Jose Mercury News
Daniel Borenstein: With $2.4 billion Contra Costa retirement debt, no one ... San Jose Mercury News Let's acknowledge the full magnitude of the debt. In addition, there is still room for savings through elimination of absurdly generous vacation and leave policies for current workers that not only drive up current labor costs but lead to larger ... |
The Oklahoma Bankruptcy Lawyers at Atkins & Markoff Alert Public to a ... - DigitalJournal.com (press release)
The Oklahoma Bankruptcy Lawyers at Atkins & Markoff Alert Public to a ... DigitalJournal.com (press release) The Oklahoma bankruptcy attorneys at the law firm of Atkins & Markoff, whose time is dedicated to helping businesses and consumers resolve their financial difficulties by way of bankruptcy protection and other debt reduction and elimination strategies, ... |