Student Loan Help

If you haven’t heard or read it in the paper, there has been much going on in the Education industry lately. Over the past few months there have been law suits filed, investigations into certain lenders, Sallie Mae got bought out, and now the shut down of lender access to the Government website NSLDS. This all comes because certain lenders (Federal as well as Private) chose to abuse their privileges. What this means in the world of banks and lenders is still up in the air. What this means for the borrower is a different story. It is going to require that the borrower/student be a little more careful when looking at thier statements. They are going to have to keep better records of who their lenders are, what loans they have taken out, and have the correct information provided to them to obtain this information.

Given the fact that most borrowers/students think Stafford is their lender, we at the Student Loan Network have provided students with a link to look up thier loans and find out who their lender are. All you need is your Pin number. If you have misplaced your pin you would have to apply for it again. You can do all of this at www.studentloanform.com. Just follow the prompts and it will connect you to the NSLDS government website. Students and financial aid officers are the only people left with access for now. Also, If you are looking to consolidate your student laons then you will need to have all your loan data on hand so the representative on the other end can better help you.

However, with the above being stated this is not to say that all lenders are bad. There is always that one or two bad apples that spoils it for the bunch. For the most part all existing lenders are still in practice and offer good services. If you have any further questions regarding this issue please feel free to contact the Student loan Network.

On January 17, 2006 the US House of Represenatives passed a bill to cut interest rates on all new subsidized Stafford loans. If this bill gets passed by the President it would mean that every year for five years your interest rate would gradually decrease. Starting at 6.8 and ending at 3.4%. The catch to this bill is that after that five year period it levels off to 6.8% again. Although this bill has not yet been signed by the President, they are anticipating it going through and taking effect this July,1.

You may be asking yourself what this has to do with consolidation. Well, I have received many calls from people who wanted to wait to consolidate because they thought the new bill would affect all their loans. The truth is that this new bill only affects your most recent student loans and has no affect on past loans. Another reason is because of the above statement. Since you are not eligible to consolidate while you are in school the dropping rate really has no affect on consolidation. Therefore, if you are in the buiseness of saving money then you really want to consider consolidating your loans. Not only will it lower your monthly payment but you will be locked into a fixed rate with only one bill to pay each montn. If you have any questions on the new bill check out the following link http://www.cbo.gov/showdoc.cfm?index=7729&sequence=. Questions about consolidation check out Student Loan Network

OTHER INFORMATIVE SITES
Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans

Anytime the federal government and money are involved it is bound to be confusing and frustrating. The federal government is always changingthe rules and regulations for federal aid creating new loopholes and issues for the student loan industry.

For example, a recent change in legislation does not allow students to consolidate while they are enrolled at least half time in school. To consolidate a student has to be out of school or carrying an academic workload of less than part time.

I personally think this rule is ridiculous. I get many requests from borrowers wanting to consolidate their loans because they need to improve their credit score to receive a better rate on a home mortgage or a car loan. Its true-consolidating improves your credit! Every year you attend school and borrow a student loan you create an open line of credit on your credit report. Consolidating your loans into one open balance really gives a boost to your credit score. When a computer calculates your credit score, it will see this: eight loans paid in full. You will look like a responsible and trustworthy borrower. Why does the federal government care that a student wants to make this smart financial step?

You can write to me about it. Not much I can do except agree with you. I suggest you write to Congress to complain about this ridiculous rule.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

Over the last few weeks, I have noticed an increase in the amount of callers who have been concerned with wether or not to consolidate due to changes in Congress. There seems to be some concern on whether the interest rates will drop this upcoming July. My answer is this”¦If you were lucky enough to fill out an application before the July 1st rate increase then I would say definitely consolidate. Last years rates are 4.7% if you are in your grace period and 5.3% in repayment. If the rates do drop I don’t anticipate them dropping that much.

If you are a recent applicant the interest rates are 6.54 in grace and 7.14 in repayment. By not consolidating your rate is variable and will change this upcoming July. It may seem silly to consolidate if rates are going to drop, but, I would way your options and see which makes the most sense. You should remember that if you don’t consolidate you are paying that variable rate on all your loans which may make the payments tough to manage. Overall it is your call but I would do a little research before making this decision. You can read more about this on www.studentloanconsolidator.com

In conclusion, it is always best to way all your options and make an educated decision. If you would rather talk to a person you can always call the helpful reps. at www.studentloannetwork.com

More links for your review

www.staffordloan.com

www.ActEducationLoans.com

The date is rapidly approaching for many recent graduates to begin repaying their student loans. Now is the time to seriously look at the benefits of consolidation and to act soon. Graduates have six months from their graduation date (a period known as the “grace period”) to consolidate their federal student loans at a discounted rate. Graduates who consolidate during their grace period receive a 0.6 percent interest rate reduction, with some students consolidating at an interest rate as low as 6.625 percent. The lowest consolidation rate increases for graduates who miss this important deadline to 7.25 percent.

Once the grace period is expired the borrower will not be eligible for the grace period rate for federal loan consolidation. If you would like to find out when your grace period expires please call 877.329.1565 - or visit www.studentloanconsolidator.com.

www.staffordloan.com

www.parentplusloan.com

www.gradloans.com

Whether you are a recent grad, or graduating this year, it is important to know when your grace period begins and ends. Typically upon graduating your grace period starts right away and lasts for six months. During this time you do not have to start paying back your loans which makes it a good time to shop around and start thinking about cosolidating.

Consolidating during your grace rate is beneficial for a couple of reasons. First, if you consolidate during your grace period you can lock into a lower fixed rate as opposed to waiting until they go into repayment. The interest rates are fixed by the federal government so you are always guaranteed the going rates. For example, the 2006 grace rate is 6.54% and the repayment rate is 7.14%. That statistic alone should be reason enough on why it is a good idea to consolidate as soon as possible. Second, since you are not obligated to make payments on your loans until your grace period ends, you don’t have to worry about putting them on a temp. forbearance while consolidating. This gives you the freedom to take your time and find the right company for you. A company that I found very imformative was www.studentloanconsolidator.com This site is full of information and has an easy online application process. Also, just remember that the rates change every July 1st so if you wait to long you may miss out on getting a low fixed rate. Just last year the rate increased from 4.7% to 6.54% for those consolidating during their grace period. If you are looking for more information on Consolidation or federal loans in general check out some of the sites listed below.

www.staffordloan.com

www.parentplusloan.com

www.studentloannetwork.com