What types of student loans are available?
You did it! You scrimped and saved and studied and worked and borrowed more money than you ever have in your life, but you did it! You finally finished school. Most likely, you've got a few months of grace period to get settled into your new job - hopefully it's in the field you studied for - and then those student loan payments are gonna start coming do. Plan now to keep your expenses in check while ensuring that managing your education debt is a part of your long term financial plan.
The first place many borrowers will look for a consolidation program is FFEL consolidation. Federal Family Education Loan consolidation offers the option of putting all of your federally funded education debt - both subsidized and unsubsidized - under a single plan. This option can even work for those unfortunate souls who have been in default in the past, and offer fixed rates, extended terms to help you get started in your new life without worrying about loan payments eating up most of threat tiny entry level salary.
In addition to traditional federally funded loans, many students finance their advanced education with a variety of private loans. Private consolidation of these loans offers borrowers many of the same benefits as federal consolidation - fixed rates, longer terms, and lower payments. Conditions may be stricter for a private consolidation and you cannot usually combine private and federal loans under a single consolidation package. You may end up with two consolidation loans, one for your federal debt, and one for private; be sure to shop around for the best rates.
PLUS loan consolidation offers the chance for parents who have borrowed to fund their child's education to get many of the same benefits as FFEL and private loan consolidation. In addition to an interest rate reduction Plus loan consolidation offers the option of extended terms to make repayment more manageable. As with any consolidation loan, extended terms also increase the total amount of the loan so borrowers need to make sure that they are making the right choice for their financial situation.
Another option to a traditional loan is an additional mortgage on a piece of real property like a house of land that you may own. Some students parents will take this option to pay off the loans and the student can they make payments directly to mom and dad. Private personal loans from family members are yet another possible way to get the worry of several large monthly payments off your back, and some businesses offer tuition reimbursement for their employees.
One of the newest innovations in lending is the idea of micro-financing. Peer to peer lending networks provide the same type structure as peer to peer file sharing networks. With a P2P lending network, borrowers submit their request usually backed by some type of credit check and a variety of lenders bid on it. Usually the P2P organization will service the loan, which may be funded from friends, family members, or even complete strangers.
You did it! You managed to finish school and are about to make your way into the "real" world. Thanks to the variety of consolidation programs available for the modern education loan, you can get started on the right track with manageable debt load and a solid plan for your financial future. Find the package that works for you, make a plan and stick with it, and you'll be paying down those student loans in no time.
The first place many borrowers will look for a consolidation program is FFEL consolidation. Federal Family Education Loan consolidation offers the option of putting all of your federally funded education debt - both subsidized and unsubsidized - under a single plan. This option can even work for those unfortunate souls who have been in default in the past, and offer fixed rates, extended terms to help you get started in your new life without worrying about loan payments eating up most of threat tiny entry level salary.
In addition to traditional federally funded loans, many students finance their advanced education with a variety of private loans. Private consolidation of these loans offers borrowers many of the same benefits as federal consolidation - fixed rates, longer terms, and lower payments. Conditions may be stricter for a private consolidation and you cannot usually combine private and federal loans under a single consolidation package. You may end up with two consolidation loans, one for your federal debt, and one for private; be sure to shop around for the best rates.
PLUS loan consolidation offers the chance for parents who have borrowed to fund their child's education to get many of the same benefits as FFEL and private loan consolidation. In addition to an interest rate reduction Plus loan consolidation offers the option of extended terms to make repayment more manageable. As with any consolidation loan, extended terms also increase the total amount of the loan so borrowers need to make sure that they are making the right choice for their financial situation.
Another option to a traditional loan is an additional mortgage on a piece of real property like a house of land that you may own. Some students parents will take this option to pay off the loans and the student can they make payments directly to mom and dad. Private personal loans from family members are yet another possible way to get the worry of several large monthly payments off your back, and some businesses offer tuition reimbursement for their employees.
One of the newest innovations in lending is the idea of micro-financing. Peer to peer lending networks provide the same type structure as peer to peer file sharing networks. With a P2P lending network, borrowers submit their request usually backed by some type of credit check and a variety of lenders bid on it. Usually the P2P organization will service the loan, which may be funded from friends, family members, or even complete strangers.
You did it! You managed to finish school and are about to make your way into the "real" world. Thanks to the variety of consolidation programs available for the modern education loan, you can get started on the right track with manageable debt load and a solid plan for your financial future. Find the package that works for you, make a plan and stick with it, and you'll be paying down those student loans in no time.
About the Author:
Dennis Powell writes about how to refinance consolidated student loans and the consolidation of federal loan programs for students.
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