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The Perils Of Paying For Your Child’s Education

Aug 14, 2009 Debt Consolidation

There are obvious benefits to sending your children off to college, and not only for your kids. Aside from the extra million or so your children are more likely to make during their lifetimes, it lessens the chances that you’ll have to raise and house them into their thirties and beyond for financial reasons. It improves the possibility that they might have money to help you through your retirement. It’s a fabulous investment in everybody’s future.

A child is, however, an investment with a mind of its own. Ask yourself, “Does my son/daughter want to go to college?” If he/she has low motivation, be very, very afraid for your investment.

Fortunately, there are some steps that every cunning parent can take to maximize the possibilities that your young ones will do you proud in the future.

*Invest the idea into their brains from a very young age.

Children are suggestible when they are young. Make sure you play up the benefits of college. Emphasize the growing need for continuing education throughout life. If your child is interested in studying topics that don’t bring in a good living, they will need more education than those who do not. Prepare their minds to accept and be ready for school, and for school to take much of their lives. If she accepts this idea, then school will simply be an incorporated part of her life, and it will be more likely to be an acceptable idea.

More drastic steps are called for if your children are already teenagers and resistant to the idea of further education. You will have to invest in classes yourself, and show your children by your actions the necessity of continuing education. Don’t think you can? How will your children accept college if you don’t? Children who have one or more parents with a degree themselves are statistically more likely to enter and finish college than those who haven’t. Period. The end. Make time for it, for everybody’s sake.

*Planning is just as important as saving (maybe more so).

If money is an issue for you, it doesn’t close the door on college. It means you’ll have to think smarter. More than one child means you’ll have to be even smarter than that.

Be realistic. Establish between the two of you (your child and yourself) whether or not you’re even aiming for college (I highly recommend aiming, no matter what the child’s interests). Everything else flows from that first decision, and the parents’ side of that commitment is more important than the child’s.

If your child tries to change his mind mid-stream, don’t get angry. Accept it. Not everybody in the world will go to college. Don’t let said child touch that money, however. Keep saving according to your plans. This money is your investment money in your child, not a trust fund they can do whatever they want with. If you don’t argue the point, he is much more likely to change his mind and agree to school at a later date.

*The money will follow the commitment.

Never lose sleep over where the money will come from. The money will come. If governmental financial aid isn’t available, loans are, although loans should be used in moderation and only as a last resort. Scholarships and grants are often available from many different sources.

Start saving money as soon as you decide that your baby’s going Ivy League. It doesn’t matter how much - nickels and dimes are a good start if that’s all you have. Set an amount or percentage and stick with it. Money invested and not touched for many years can’t help but build up over time. You may not be able to save up for the entire amount, but anything you CAN save will be money you won’t have to borrow.

*Help your baby get a job as soon as she’s legally old enough.

Lots of folks feel that children should be free to focus on college and nothing else other than “finding themselves”. I am not one of them.

Do grownups get to focus on one thing at a time? No way. Multitasking is the order of the day, and I guarantee it won’t hurt your teenagers either. It will better prepare them for the world of adulthood than school or after-school activities.

It’s actually kind of fun to watch kids set loose on a grunt job like construction or restaurant work, and watch them come home sore and ready to tackle their studies like there’s no tomorrow. When I started back to college myself after a long absence myself, I attended a student orientation where the president of the college stood and spoke of his first job that his father had gotten him, working the jackhammer on a road crew. He came home shaken to pieces and swore that he would get his degree, no matter what the cost. He did…right through to his Ph.D.

It’s my opinion that wealthy children may be at some disadvantage in this, unless their parents are wise enough to make them find work. Working provides a real-world laboratory that no school could ever hope to create artificially. Plus payment. It goes without saying that at least some of that child’s money can be put toward…you guessed it. A college education. Now you don’t have to shoulder the whole burden yourself. Breathing easier yet?

You really don’t want to pay for it all yourself. If the child doesn’t earn it (even a little bit), it’s not wholly hers and she’s much less likely to take her studies seriously.

I don’t want anyone to walk away from reading this and think that parents should not be involved in getting their children through college. You should help them every step of the way. Provide support, encouragement, and be their cheerleading section, but don’t step up and be their money tree, even if you can afford it.

Children can cry and scream and hold their breath and threaten to move out and get a job. Let them. The reality of working as even a low-level white collar worker and paying their own bills will bring them to their knees soon enough…and back to class.

Tags: Debt Consolidation, Loan Consolidation, pay student loans, Private Student Loans, Student Debt, Student Loan Debt, Student Loans

How To Finance Your Masters Degree

Aug 11, 2009 Debt Consolidation

If you want to pursue a Masters Degree, you may find the only thing stopping you is the money to do so. There are several alternatives open to students trying to finance their Masters Degree.

The most common way to finance a Masters Degree is by taking out student loans. These are available at reasonable rates as long as you are a citizen or permanent resident. Once you complete your Masters Degree program you have a period of six months to find a job before you must start paying back the loans.

Another option to finance your Masters Degree is to become a research or teaching assistant. Not everyone can count on this option to finance his or her Masters Degree, but if you can get into this program it will help you pay for your education.

As a research assistant you will be required to help someone on the staff of the university with their research or any other project that they need assistance with. A teaching assistant will mark papers and sometimes teach classes.

You can also get help to finance your Masters Degree by getting a scholarship. These are sometimes awarded to bright students who may not be able to finance their Masters Degree without some assistance.

These are given to students who apply for the help to finance their education. Other times they are given to students who the university deems exceptional and feel they want to encourage trying for a higher education. A scholarship does not necessarily finance the whole program, but it can help out significantly.

You may find that the only way you can finance your Masters Degree is by working around your classes. This can be very difficult, and mean that the only jobs you can get, because of the need for flexibility, are minimum wages positions.

Often your alternatives to finance your Masters Degree are a combination of these alternatives and maybe a little help from your parents.

Tags: Debt Consolidation, Loan Consolidation, pay student loans, Private Student Loans, Student Debt, Student Loan Debt, Student Loans

Can You Find Student Personal Loans With Bad Credit?

Aug 9, 2009 Debt Consolidation

It is important to understand as to why would a student apply for a student personal loan. More importantly, the chances of the personal loan getting approved would also need to be taken into consideration. One thing is for sure - Student Personal Loans are not too different from the ones applied by people of other age groups. To help students with their personal loans needs, there are a lot of financial institutions that offer these services.

One of the more popular types of loans is the Unsecured Personal Loans. Student Personal Loans with Bad Credit often get categorized under this group. This is an extremely good option if you wish to consolidate your bill payments, meet any emergency expenses or meet your personal expenses when you are in the school. All in all, Student Personal Loans takes care of a whole lot of sundries that are not accounted for when the Student Loan is approved for the student.

What are the requirements to qualify for Student Personal Loans?

Primarily, the applicant must at least be 18 years old and should be a resident of United States of America. Student Personal Loans with Bad Credit is still a realty for all the people who have a bad credit rating. The only addition here is that the applicant would require a co-signer, especially one who has a good credit rating.

On a gross basis, the applicant would need to have a median credit score of 500 or more than that. Students having a score less than 500 would obviously be treated as ones having a bad credit history. As said before, they can still qualify for applying for the Student Personal Loans only if they have a Co-signer.

The maximum permissible amount to be sanctioned as a Student Personal Loan is $15,000 starting at $1,000. The Annual Percentage Rate or the Interest Rate for such loans varies from 5% to 20% with the tenure of repayment varying from 1-4 years. Another criteria important for you to apply for this loan would be that you would need to take home an income of $1200 every month. Basically, if you are a non-earning student you could get a co-borrower who earns at least $1200 every month. Staying in the same residence for the last three months is a must.

Student Personal Loans with Bad Credit is not a myth. On ground, it has been proved to be a realty with financial institutions providing loans to students with a bad credit history. All you would require though is a co-signer preferably with a good credit score for you to avail of student personal loans.

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College Debt: How To Pay Back Or Have Loan Forgiveness

Aug 9, 2009 Debt Consolidation

Congratulations on finishing college. A new life is ahead. With a degree or diploma in hand the world is your oyster and you are now living in a sea of debt. Federal, state and private loans made the American Dream of a college education possible for many that never would have been able to attend otherwise. Yet, the debt incurred can make life a living nightmare possibly for the next 10 years or more of life. Many who graduate with a 4-year degree are $30,000 - $40,000 in debt according to Dr Yohn of College Works 101. She states additionally graduates may have $10,000 in credit card debt. The burden of debt will take a toll that is more than just fiscal. Without getting a handle on debt, depression may be knocking at your door along with the bill collector.

TOOLS & TIPS

Believe it or not, you have the tools at hand to handle this challenge. Remember back to your freshman year when the syllabus was handed out in each class. In looking over the workload and then multiplying it be each semester, times for years the workload loomed. It seemed insurmountable; yet, you survived.

*Use Skills–Use the skills you gained in college to help stay abreast of the current rules and regulations that are changing related to student loans. The current administration is concerned about the amount of debt students are graduating with. In July 2009, the federal government is providing a bail-out plan for students. It allows borrowers to pay reduced amounts per month on their federal loan (sorry folks, federal loan only). If you have no income, in some cases you may not have to pay at all, that is until you become employed.

* Delay Repayment– While in school your repayment schedule is delayed. Though not advocating becoming the eternal student, the nation is currently in a recession. This makes it more difficult to find a job that is going to support both you and your student loan. If continuing for an additional period of time is going to make you more marketable, improve your job prospects, land you a job at the college discounting your tuition while you continue to study, do it. Remember, once you finish school there is a six-month grace period prior to being required to begin repayment of federal student loans..

*Service Programs-There are a variety of service programs that postpone student loan repayment in return for service to humanity. These programs include participation in programs such as the Peace Corps, Americorps, or Teach for America. Some of these programs offer a small stipend while loan forgiveness occurs. This provides your resume with the added oomph it might need in the near future to put you over the top in getting the better paying job, the one that required experience. This website http://www.finaid.org/loans/forgiveness.phtml has links to these various programs. It has special links for teachers, social workers, lawyers, nurses, and those that want to work or are working of non-profit institutions (also known as 501c3)

* Government jobs-”Work for the Man” and apply for a civil service position. This means taking a civil service exam. Now don’t go rolling your eyes. In most of these entry level positions, what the government means by “exams” is filling out paperwork. Your a college grad., I think you can handle it. Some of these positions offer amazing repayment benefits ranging up to $10,000/year with a maximum of $60,000. Kiss that debt, bye-bye.

As for your other loans, student loans can’t be discharged. If you are having trouble with repayment, talk to your leader. They don’t want you to default anymore than you do. It is in their interest and yours to work something out.

Tags: Debt Consolidation, Loan Consolidation, pay student loans, Private Student Loans, Student Debt, Student Loan Debt, Student Loans

Go To College Without Incurring Huge Debt From Loans

Aug 7, 2009 Debt Consolidation

Before the turn of the century, most college-bound students financed their education through work and government student loans. Those going to more expensive schools would sometimes opt for other types of loans. The interesting thing about these students is that most spent many years paying off those low-interest government loans. Those who continued for masters or doctoral degrees often are still be paying on those loans.

In the middle of houses and cars and kids, they’re stuck with bills from over a decade ago. Keep working, somewhere down the road it will all pay off, or so the common wisdom goes.

With the lessening of control over credit and loans, has come a preponderance of private student loans. These private companies have now flooded the airwaves and online banner space with targeted ads. While 18 year olds are considered adults in many ways, they are highly susceptible to these marketing campaigns. They are usually in a stressful and uncertain position wondering where the money for school will come from. We as parents and educators often increase this pressure. Further, finance is not a subject most high school seniors are offered.

Put them in a position where they are offered all the credit (debt) they want to go to college, and you can imagine how easily they succumb. After all, they still don’t have to start paying until they’re finished with their schooling.

One myth is that few college students can afford to go to school without loans of some sort. This is a myth that is perpetuated by the establishment. Some believe they need to go to schools like Harvard or Yale. This is strange when these schools charge many times the rate of their local public universities. Is a degree from Princeton really worth more than one from UCLA? If so we have a faulty system.

What kids need to know is that there are relatively few instances where the amount of money they pay for famous private colleges would be worth it. If you’re looking to get a job with the most prestigious law firms in the country right out of college, you should probably consider going to a top Ivy League law school. Just don’t forget about placing high in your class.

If you’re considering a high level degree in business, there are many other great business schools. High level jobs aren’t simply handed out to new graduates. It takes many years of work experience to rise up through the ranks. An MBA from one school will be as good as another. You need the degree, but then you need to prove your worth and develop your real value on the job.

So the first key to getting a degree without racking up huge debt is to choose your school wisely.

This is not simply a choice between private and public, or a local university versus one all the way across the country. You need to seriously consider a junior college (JC). Almost all of the courses you take in your first two years are General Electives (GE’s). They’re the same courses whether you pay ten thousand at a university or fifteen hundred at a JC. It is easy to take courses that transfer with full credit to the university you want to go to for the last two years.

This one simple step can virtually cut your college costs in half.

Pair this with another money saving idea and your entire future could be student debt free. This key to no debt is to get a job. That’s right. Even a part time job while you go to school can allow you to save such a big chunk that you can pay your last two years with it.

I know, many of you will complain it’s too hard, or that you’re young and now is the time for you to be having fun. How much does that fun cost though? Is it worth 20, 30, 50,000 dollars in debt? How much fun will you have when you have to work ten hour days to pay a mortgage, an auto loan, feed your children and pay your student loans back?

Another key is to stay home. Yes, you can continue to live with your folks since you’re going to the local junior college and that means no rent or room and board costs. You do the math for two years rent. While you’re at it, ask your father how much it costs to feed you for two years.

If you liked that last key, carry it over to the next… Do you last two years and get your bachelor’s degree online. Shop around, find a good deal, use the money you’ve saved up (and continue to save while you continue to work as you can do your online classes anytime,) and for two more years, save on room and board.

It may not be prestigious to still live at home with your parents when you’re twenty-one, but at twenty five you’ll be debt free with the same degree as others who owe tens of thousands of dollars.

Tags: Debt Consolidation, Loan Consolidation, pay student loans, Private Student Loans, Student Debt, Student Loan Debt, Student Loans

Get Rid Of Student Loan Debt

Aug 5, 2009 Debt Consolidation

Millions of Americans find themselves carrying student loans. Some students graduated and carry the financial debt as an investment in their education, while others carry student loans for semesters they completed, but did not earn the degree. Whatever the reason, managing student loan payments can be difficult for former students. In recent surveys, many people paying back student loans report that their payment exceeds rent or mortgage costs.

So what do you do if you fall on hard times? Deferrment is possible, as is forbearance; both are ways to stop your required loan payment, but these are temporary measures. Student loans, unlike other forms of debt, are not dischargable during bankruptcy. This means that even if you filed bankruptcy, you are still responsible for the loan payments, no matter what your circumstances.

There are ways to get part or all of your student loans discharged, or taken off your record. These are legal methods, and many people do not know the various ways that the government legally allows you to get rid of student loan debt.

1. If you are declared 100% disabled or die, you or your heirs do not need to repay student loans. This is important–if you were to die suddenly, does your family know that they do NOT have to repay your loans? Make sure they know this. If you are in an accident or become ill with a long-term chronic illness that makes it impossible for you to work, you can apply to have your student loans discharged as well. You credit will not be harmed by a disability discharge.

2. If the school you attend closes before you can complete your program, you are not responsible for your student loans, and do not need to repay them. The loans are canceled in full, and your credit report is not harmed by this.

3. You can join the Peace Corps, VISTA, or teach for five or ore years in a designated low-income school, and get up to $5,000 for teaching. The Peace Corps and VISTA give you 15% of your loans EACH YEAR you are part of their programs; while the pay is low for these programs, the 15% off your student loans goes directly to the loan agency, and you have peace of mind knowing that part of your loans are repaid.

4. A hardship hearing. If you declare bankruptcy, student loan debt is not discharged. However, you can request a special “hardship hearing” where you present your case to a special judge, explaining why repaying the loans would be an undue hardship. Only a very small percentage of people successfully discharge their loans; talk to a bankruptcy lawyer for more information on this option.

5. “False certification.” If you can prove that a school misled you into thinking that you would benefit from their program, and the loans or debt you took out was a result of such promises, under certain guidelines your loans can be discharged.

One important note: the worst thing you can do is to default on your college debt, and go into delinquency. If you do not make payments for 240 days, your entire balance is due. If you go 270 days, your account is considered to be in default. This means you lose all future federal financial aid. The government can act legally against you, and you can lose your income tax refunds–the money is put toward your student loans owed. Default and delinquency are very serious, and can hurt your credit record for ten or more years.

Tags: Debt Consolidation, Loan Consolidation, pay student loans, Private Student Loans, Student Debt, Student Loan Debt, Student Loans

Should You Consolidate Your Loans?

Jul 31, 2009 Debt Consolidation

In today’s economically challenged times, thousands of Americans are finding themselves struggling with financial difficulties. During a time when buying and selling homes was easier, many loans were being taken out to purchase that dream home. Today, dreams are being challenged as the financial climate in America changes. As the American dollar’s value struggles to stay above water, families across the country are feeling the edge.

Should you consolidate loans or not? Examining the Pros and Cons. There are some pros and cons to loan consolidation. To determine whether or not you should consolidate loans, it’s important to think long-term, not just short-term relief. Let’s take a look at the pros of loan consolidation.

Pros: 1. One payment to one lender 2. Time to repay loan can vary according to what you need. 3. A lender can work with you to extend a repayment schedule 4. You can lock in low fixed interest rate and avoid the types of rates that go up each year. 5. Lower monthly payment 6. Saving extra money each month 7. No penalties for early payment of loan

Cons: 1. Although you may receive a low fixed rate on a consolidation loan now, if the interest rates go down, you’re locked into your current rate. 2. Your consolidation loan may have fewer deferment options than your original loans, so you best check with your lender to see if cancellation and forgiveness options may be affected. 3. Longer repayment of loans means paying more interest over the years. 4. You might be tempted to start using your credit cards again cause you feel you’re in the clear.

Student loans, credit card bills and etc. may be driving you nuts each month. Consider those credit card offers you receive in the mail. Before throwing them out in disgust, check out their interest rate and consider consolidating some of your credit into one credit card with a low rate.

However, be careful not to open a bunch of new credit lines and get caught back up in the credit trap!

Consolidate loans and pay them off with a home equity loan. This is, of course allows you to use the money in any way you like, but remember, getting out of debt is your number one goal! The interest you pay on a home equity loan is tax-deductible.

Your savings account may be growing, but so might your debt. Make a plan each month to pay off a credit card bill, or at least work toward paying it off. An extra $25 to $50 toward a debt can make a difference, but it’s still a slow way to get out of debt if your credit card expenses are really high. This is where refinancing your home or a home equity loan might work best. Again, weigh the pros and cons before taking that leap.

Controlling debt

Now that you’ve made a decision to consolidate your loans, pay off credit cards and smaller school loans, it’s time to control future debt.

Here are some things to consider:

1. Know your expenses. 2. Make a budget 3. Take credit cards out of your purse and wallet 4. Don’t grocery shop when hungry 5. Don’t impulse shop 6. Know what you plan to spend and when

Rewarding yourself

Paying off debts and succeeding doesn’t mean you never have fun. You can reward yourself once in a while by spending a little money on something you really want and need, or going some place special for dinner or entertainment.

The key is to do such things occasionally and not get into dept doing it. At the end of the day, you’ll sleep so much better knowing you’re sticking to your program and no creditors are knocking on your door.

Tags: Debt Consolidation, Loan Consolidation, pay student loans, Private Student Loans, Student Debt, Student Loan Debt, Student Loans

How Students Can Manage Their Student Credit Cards

Jul 29, 2009 Debt Consolidation

Surveys prove that many college students graduate with unpaid debts on their student loans which can amount to $20,000. Those who are still in college are faced with credit card debts amounting to $7,000 or even more. Even worse, there are many at a young age of 15-25 have already filed for bankruptcy. If you’re a student who owns a student credit card, these staggering surveys should definitely concern you. What can you do to avoid falling victim of bad credit?

Here are some valuable tips you can in your personal life as a student to help you manage your finances wisely.

Make a Commitment Bad credit usually results from splurging or uncontrolled spending. In order to avoid paying for unreasonably high balances, as a student you should have the will to restrain yourself from spending on things that are not really necessary. Every time you plan on buying, ask yourself, “do I really need this or do I just want it?” If you know that you can get by without making that purchase then, have the will to back out.

Pay Cash Don’t use your credit card on every little thing you need. When you eat outside or go to the movies, don’t charge it on your credit card. You should change your outlook about owning a credit card. It doesn’t give you the leeway to spend on all the things you want. Always keep in mind that you are still responsible in paying back the charges on your credit card.

Budget Your Money It’s important to have a written plan of your monthly finances. List your exact budget for the entire month and your expenses. Compare the results and you’ll see how you’ve been managing your money in the past. Are your expenses way more than the money you really have? This will be your reality check on how much you’ve been actually charging on you credit card. So what will you do about it?

From now on, you should have a monthly plan where you will list your allowance for the month and all the things that you need to buy. Your expenses should always be less than your monthly allowance. Try to save a portion from your budget which you can keep as your personal emergency fund.

This will be the money you will spend on situations when you really need the money urgently. Also, save another portion from your budget which you can spend on perks and personal indulgence. Always take a look at your monthly plan and make sure that you’re not spending out of your limit.

Don’t Rely on Others for Financial Help Now that you’re old enough to have your own credit card, be a responsible person. Don’t think that you can always rely on your family or your relatives for financial help in case you get stuck in debt. With this mind set, there’s a big tendency that you won’t be taking your finances seriously.

As early as now, practice independence. Knowing that you are solely responsible for the debts you owe will keep you aware about your spending habits.

Credit cards for students do not have to be such a bad thing. However, if you notice that you are having problems in keeping up with your balances, then it’s time to change. Consider the above suggestions carefully. They are the key to managing your finances.

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The Best Tips For Getting Money For Your College Student

Jul 29, 2009 Debt Consolidation

Mr. and Mrs. Lynn, your daughter, Kristen, has just graduated from University of Central Florida, Rosen College, - what are you going to do? Well, we don’t need to go to Disney world (because we live in Orlando) but we sure are doing the happy dance! It’s been a long and sometimes concerning road from the time of hearing college costs would be $100,000 back in 1985 to hearing reports of inflation creeping into the universities. However, we did it with two kids and on one income! And we did it realizing there were more resources out there than we were lead to believe for the college bound student. However, knowing your options is the secret and not listening to all the myths out there about the impossibilities that lie ahead for our students.

Preparing for College

- While in high school, check and double check with the child’s school counselor on all resources for scholarship money. The reason I say double check is because counselors do make mistakes. And this information is just too important to take the first word as the last word. Counselors should have the most recent information about the local and state universities and what the student’s requirements need to be. While visiting the counselor, periodically have the student verifying with them so they have all the necessary credits and qualifications for the desired college or university they wish to attend.

- The last 2 years in high school, keep taking that SAT/ACT as many times as you can to get the highest score possible. If you are having problems, seek help to improve your scores.

- Check into your local community colleges to reduce your college costs by taking some college preparatory courses. This helps to get some of the basic requirements out of the way. Also, consider on going to the community college for 2 years to continue to save on tuition. When you get your final degree, it won’t say the name of the community college on there. It will be the four year university the student will finish at that will show up on the diploma. We sent both of our children to the local community college which just so happens to be one of the best in the nation and it reduced our costs by 25% per credit.

- Check your state for scholarship money. In Florida we have the Bright Futures Scholarship. Over the years, the criterion has been getting more difficult when it comes to the G.P.A. Nevertheless, it was a wonderful program for us to use and saved us a bundle of money.

- If your student works, have them check with their local employer for scholarship money. My daughter has worked for Universal Studios since she was 16. We have been receiving scholarship money from Universal Studios since she started college. In fact, this year, they actually increased how much they would pay for tuition and books.

- OK, now you don’t necessarily have to be a brain to have a scholarship. Scholarships come in many forms. They can come based on your nationality, financial status, essays and more. Sign up to receive information on the variety of scholarships out there. Searching for scholarship money should start as soon as possible.

- Not only can the student receive a student loan but also parents can. There is a qualification using the credit report. However, it is not as strict as it would be for getting other types of loans. It’s best to talk to the finance department of the college you wish to attend and they can direct you to Nelnet which is the financial area for education planning.

- Check for your state’s 529 college plan. The 529 plan is a state-sponsored plan that is designed to encourage saving for future college costs. All 50 states have their own 529 Plan.

Despite all the doom and gloom you are hearing about tuition costs rising, no scholarship money out there or it’s hard to get student loans - it’s always best to verify your own resources first. When our kids were babies, we didn’t know how we were going to handle college on one income. We owed it all to our perseverance in finding out answers and our kids for getting good grades.

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AES Student Loan Consolidation: Will You Qualify?

Jul 28, 2009 Debt Consolidation

American Educational Services offers federal loan consolidation. So are you eligible for AES student loan consolidation? You can, whether you’re in or out of school.

Sure, You Can Qualify, But Only If You Haven’t Consolidated Before

You do, if you’re a recent graduate, a borrower who is already paying back their loans, or a parent who has a PLUS loan. Only federally guaranteed student loans are eligible to be included in a federal consolidation. If you’re still in school, students who are enrolled more than half time are not eligible for federal consolidation. If you’ve graduated in the past six months and you’re still in your federal loan grace period, you are eligible for a lower interest rate on your student loan consolidation.

When you’re completing your online application, you’ll be given a choice to either have your application processed immediately, or have it held until your grace period ends. If you request to have your application held, you will lock in interest rate will still retaining the right to benefit from any potential government subsidy payments. You can only consolidate a previous Federal Consolidation Loan if you’ve taken out any additional federal education loans after you consolidated, or if you hadn’t included all of your federal education loans in a previous consolidation.

Any defaulted federal education loans held by another lender are not eligible to be included in your federal loan consolidation. If your federal education loans are held by AES, you can include them in your consolidation only after they’ve been rehabilitated.

Parents Can Qualify

You’re eligible for student loan consolidation if you’re a parent who took out loans for your child’s education, too. Federal consolidation offers the same benefits for parents, as it does student borrowers.

If you have PLUS loans for more than one child, you consolidate them separately. You can’t, however, consolidate your parent PLUS loans with your child’s FFELP loans. Federal law prohibits multiple accounts to be consolidated together, with the single exception of a Federal Spousal Consolidation.

What’s The Next Step?

What are the advantages to an AES student loan consolidation? The benefits of consolidating your loans include taking advantage of the opportunity to lock into a fixed interest rate, and find you have only one bill to pay as you lower your monthly payments.

You won’t have to deal with application fees or credit checks, and you won’t need a cosigner. So what are the steps towards consolidating your student loan? If you apply for loan consolidation on line, you’ll have to enter your personal information, verify your personal information, agree and electronically sign your paperless application, and print your confirmation.

Tags: Debt Consolidation, Loan Consolidation, pay student loans, Private Student Loans, Student Debt, Student Loan Debt, Student Loans