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College Loan Consolidation – Advantages and Disadvantages
College tuition is on the rise and students and parents alike are seeking additional methods to help pay for the soaring costs. Student loans, grants, scholarships and work-study are common ways to supplement or completely pay for the cost of college.
Student loans are probably the most popular of financial aid sources. It’s quite usual for a single student to take out multiple loans to cover the many expenses of a college education – tuition, transportation, dorm, books, etc.
At the end of a college student’s career, they often find themselves facing a hefty sum of financial payments which start after a six to nine month grace period post graduation.
Many students turn to College Loan Consolidation to reduce the stress of multiple, high payments, opting for the lower payments and extended terms of a student consolidation loan. While there are advantages to student loan consolidation, students should fully research and analyze all of the aspects of loan consolidation.
College Loan Consolidation – Federal vs Private
Federal loans are more popular than private loans for a few reasons. Federal loans have lower and fixed interest rates and additional benefits such as grace periods. Private loans usually have higher interest rates, and no grace periods.
When consolidating, keep the types of loans separate in order to retain the benefits of the Federal loans. Federal loans provide a cap on the interest rate, along with fixed interest rates.
College Loan Consolidation – Advantages and Disadvantages
It is important to consider both the advantages and disadvantages before applying for a student consolidation loan.
Advantages include:
A lower monthly re-payment amount
Lower interest rate, which may save you money in the long run
Organization of loans – make a single monthly payment
Disadvantages include:
Possibly paying more money over the life of the loan
Most likely paying on the loan for a longer amount of time – 10 to 30 years
There are few options to consolidate this loan later
If you decide that college student loan consolidation is for you, start by conducting extensive research. Begin with federal student loan consolidation programs such as Federal Family Education Loan Program and Direct Loan Consolidation. They offer fixed interest rates capped at 8.50%. There are also other free resources to help you choose. It is important to shop around and gather as much information as possible in order to make the best decision.
For private student loan consolidation, inquire with various lenders both offline and online. Many times, online vendors provide a lower interest rate and quick approval times.
Perform exhaustive research until you are completely comfortable making a decision, as this decision will make quite an impact on your financial future for a number of years.
How A Payday Loan Works
Some people suddenly find themselves in a financial mess that they are not ready to take on. Maybe they have piles of credit card debt, a long due but forgotten utility bill, or a minor accident that left them with medical bills. Facing these emergency cash needs, they cannot wait the next payday to get the needed cash and solve their financial problem. Anyone that relies on a fixed monthly income is at the risk some time of experiencing trouble in getting emergency cash as soon as possible. This is particularly true if the needed amount is high and very difficult to obtain at an instantly.
Special family occasions, medical expenses, emergency repairs for the home or vehiclein these situations where help is really needed, a payday loan is the fast and easy solution. When these sticky situations occur, the thing that could help them the most is getting a fast and convenient payday loan because it does not require tedious loan application processes or documentations.
Payday loans come in handy. One can easily find a reputable lending company through searching the Internet, even some government financial institutions list down certain accredited payday loan lenders. Nowadays, people can be careful enough to choose which lending firms are the best. There have been situations where people who were in dire need of cash carelessly loaned money from loan sharks who took advantage of their urgent need and charged high interest rates and set unthinkable terms and conditions.
Indeed, there are many legal cases that are still waiting decisions involving loans and judicial petitions where double the normal rates are being asked for, taking advantage of the consumers’ needy plight. There are also horror stories about hapless borrowers being harassed by scrupulous lenders. They are even threatened by these lenders and loan sharks to repay or face consequences.
For would-be borrowers, the question that comes to mind then is how a payday loan works. The process is not complicated. One just has to fill out an application form online. Once the lending company has the necessary information, they would validate and access the loan application. After the application is approved, the money is transferred to the bank within a few hours or a day, depending on the services of the lending firm.
One of the important steps for borrowers is to find an online lender that operates near their locality, because in case of trouble, they can go to the lender without much fuss. It is important to reiterate that people should get the details of each lender and compare their various parameters, terms, and conditions. Based on these criteria, borrowers can make an informed decision. It is also advisable to read the consumer reviews and other third party websites which offers reviews to help in making the right decision. Therefore, some research can truly make life easy and worry-free when looking for payday loans. Making an informed decision is the best thing one can do to be protected.