Thursday, December 20, 2007

Myths and Facts of Student Loan Consolidation: Final Part

Myth: As long as I'm in school, I cannot consolidate any of my Federal student loans until I graduate or leave school. Fact: Not entirely true. If you are in graduate school, you can consolidate your undergraduate school loans. Also, if you're in a post-graduate program, such as medical school or law school, you can consolidate your undergraduate and graduate school loans!

Myth: Even if I have a high interest rate but I’ve already consolidated before, I can’t consolidate my student loans again to take advantage of a low fixed rate.
Fact: Not true. You can reconsolidate if you either received a new eligible loan since the consolidation or have left an eligible loan out of the original consolidation.

Myth: Student Loan Consolidation will hurt my credit rating.
Fact: Not true. If anything, Federal student loan consolidation may help your credit rating, so that you can have the ability to obtain additional credit for things like a mortgage or a new car!
When you apply for any form of credit, such as a mortgage loan or credit card, lenders will evaluate your credit score as part of the application process. Your credit score takes into account the number of creditors you have as well as the balance of outstanding loans. By consolidating your student loans into a single loan, you can effectively decrease the number of creditors on your credit history, thereby enhancing your overall credit score.

You’ll be happy to know that at most student loan companies, there are no credit checks!


Myth: The word “consolidation” is frowned upon in the credit industry.
Fact: Not true. There are two types of consolidations in the credit world. One is consumer debt consolidation and the other is a federal student loan consolidation. Each is very different from the other. Consumer debt consolidation is usually meant for people who have had trouble paying off their bills and can really hurt their relationships with their creditors. Student loan consolidation, on the other hand, doesn’t hurt anything. No relationships are harmed because, by consolidating all your federal student loans, lenders will be paid in full and one single new loan (a consolidation loan) will be issued in its place. In fact, your credit rating may actually improve after you consolidate!
If there’s one good thing that the government has given the American student, it’s the option of student loan consolidation. If there’s anything a student should consider after graduation, it’s student loan consolidation.


To learn more about student loan consolidation visit http://www.onesimpleloan.com/loan_consolidation.asp

Wednesday, December 19, 2007

Myths and Facts of Student Loan Consolidation: Part 1

If you’ve got student loans, then please pay close attention! You’re about to learn a lot of valuable information about student loan consolidation that, if acted upon, could put a lot of money back in your pocket after college.

Myth: Consolidation of student loans is just too complicated to invest time in!
Fact: While it may seem complicated or time consuming, the process of consolidating Federal student loans is rather simple and the rewards are bountiful. In fact, the process has been made easier than ever by student loan companies who will do all the work for you. They will walk you through the entire process and even help you pick out the repayment package that’s best for you. Student loan consolidation can transform your loans into one, simple, manageable repayment package that’ll make paying back your student loans easier than you can imagine.

Myth: If I have a single lender, I have been told I can not consolidate.
Fact: No longer true! In June, 2006, the single lender rule was repealed by Congress and President Bush. In fact, a student loan company, OneSimpleLoan, filed a lawsuit challenging the Department of Education in June 2006. That effort was a catalyst in overturning the single lender law!

As a result, you now have the freedom of choice to consolidate your student loans with anyone you choose, regardless of who your original lender is. Make sure you choose a company that has your best interests at heart all the time.

Myth: If I consolidate my loans, I must extend the terms of my loan.
Fact: Not true. You can, indeed, maintain the exact same terms and monthly repayment amount as your original student loans. (This is a good idea, since you may be able to pay off your consolidated loan even faster!)


For more informaiton on student loan consolidation, visit http://www.onesimpleloan.com/loan_consolidation.asp

Monday, December 17, 2007

Private Student Loans 101 - Final Part: Choosing Your Perfect Private Student Loan Lender

Private loans could very well make funding your entire college education possible, but choosing the right one for you will determine just how much is possible it is to get all the money you need. Read on to learn some of the things you should look for when searching for your perfect Private student loan.

Unlike Federal student loans that are guaranteed by the government, Private student loans or Alternative student loans are guaranteed by Private institutions such as:

  • Banks
  • Private Lending Institutions and
  • State Institutions that grant Private Education loans
  • Schools, colleges and universities

Each Private student loan lender has its own eligibility but if you’re in college as an Undergraduate or Graduate student, simply continuing your education or studying a professional degree such as in the medical or law field, you should find many private loans options are at your disposal.

Look for the best Private loan terms for your good merit

Depending on the type of loan you’re seeking, most Private loan lenders will also have their own Private loan repayment terms. Since your eligibility for Private Loans are based on terms of merit such as creditworthiness and reliability to pay back a loan, make sure you work with a Private loan lender who gives you a break, such as the borrower benefits mentioned in Part 3, for your own good merit upon repayment.


How 'easy' is the lender's application process?

When choosing a Private loan lender it’s also important to consider how easily you’ll receive the funds you need. Take into consideration:

  • Website - How inviting is the company’s website? Is it informative, easy to navigate and understand? Is it resourceful?
  • Application process - What application methods are available to you? Online, Phone, Mail? If the lender offers an online application, is it easy to understand? How long will it take to fill out? What kind of information is required of you? Most importantly, is it secure? If the company has a paper application, do they offer to mail it to you? How prompt will they be? What is required of you once you receive it? Based on your preference, make sure to work with a Private loan lender that gives you the choice of a paper application or online application.
  • Customer service – Is courteous customer service available? Is the customer service staff trained to answer your questions? What type of quality assurance does the company have? Make sure to work with a lender that has trained Student Loan Consultants – if they invest the time to maintain the quality of their employees they’ll be more likely to invest quality time in their clients.
  • Processing time – Take into consideration how long the company takes to send you the money you need. Finding out who is the company’s guarantor could determine how long it will take to get the funds to you.
  • Credibility – How long has the lender been in business? Does the lender have any credentials? It’s important to find out what types of certifications or memberships the lender you choose has. Is it a member of the Better Business Bureau? A Chamber of Commerce? Has it had any complaints? It’s important to check. Working with a lender you can trust to handle your finances and personal information is an important decision, after all.
The perfect Private student loan and lender could get you the extra funds you need to pursue your education!

Now that you’ve made it through Private Student Loans 101 and learned about an alternative way to pay for your college-related expenses, don’t let anything hold you back from pursuing the dreams of success you want. A great education is a wonderful thing and nothing should ever stand in your way of achieving your goals.

As you start or continue your education, remember
the availability of private loans, such as those from OneSimpleLoan, offers you an option to fund your education when you don’t know where else to turn for the money you need.

Wednesday, December 12, 2007

Private Student Loans 101 - Part 3: Taking Advantage of Private Student Loan Benefits

Of course the primary purpose of obtaining a student loan is to help you obtain a sound education so you can realize your career aspirations. And using credit wisely is important. That’s why you’re encouraged to seek out as much Federal student aid, grants and scholarships first before applying for a private loan.

Private loan application process — get pre-approved in minutes if you qualify!

However, once you determine that a private student loan can be a viable alternative funding source to cover your education finance gap, you could be pre-approved for a private loan within minutes of applying! Many times the application process is very simple and can, with most lenders, even be handled over the phone or online.

Longer pre-payment terms and no pre-payment penalties can help you better manage your cash flow after college

When it comes to paying back your private loans, many lenders give you up to 20 or 25 years to do so. The absence of pre-payment penalties means that as long as you make your minimum monthly payment, you can pay off your loans as fast or as slow as you want within your repayment term.

Interest rate discounts can help lower your cost of private loan borrowing even more!

Many private loan lenders would like to have your business. So be sure to shop around, and make sure to ask each lender about these and other private loan “borrower benefits” such as:

• An interest rate discount for automatic payment from a savings or checking account
• An interest rate discount for simply making on-time payments.
Little or no origination fees, if you or your co-signer has good credit

For more information on Private Student Loans visit www.onesimpleloan.com/private_loans.asp

Tuesday, December 11, 2007

Private Student Loans 101 - Part 2: Types of Private Student Loans

Most Private student loan lenders have a variety of Private student loans available for college students in different areas or lengths of study. Many Private loan lenders will even lend to parents of students who are in non-public elementary schools or secondary schools.

Although each Private loan lender has their own line of Private student loans available for lending, those listed below are commonly available by most. Keep in mind also that each Private loan lender has its own list of eligible schools so make sure to apply for a Private loan with a lender for which your school is eligible.

Common types of student loans that most Private student loan lenders offer:

Undergraduate Private Loans – Generally speaking, these loans are available to students who attend undergraduate colleges and career, technical, and trade schools across the nation and who will be attending their school of choice and usually be attending at least half-time.

Continuing Education Private Loans
– These loans are generally available to part-time (less than half-time) students who attend schools across the nation. This includes students that are completing a degree or certification program or taking classes to further their career or personal development.

Graduate/Professional and Bar Study Private Loans – These loans are generally available to students pursuing advanced degrees at participating colleges and universities across the nation. Students must usually attend at least half-time.

K-12 Education Private loan – These loans are generally to parents or other adult sponsors (relatives or friends) of children who attend participating non-public elementary schools across the nation including private, religious, preparatory, military or special education schools.

For more information on Private Student Loans visit www.onesimpleloan.com/private_loans.asp.

Monday, December 10, 2007

Private Student Loans 101 - Part 1: Introduction to the Private Student Loan

One of Uncle Sam’s greatest gifts to the American student is Federal student loans, making it possible for millions of young Americans to pursue higher education. But Federal student loans may always not be enough. That’s where a private student loan may be an excellent financial resource to fill in the gap to cover college-related expenses.

Private student loans — not just for tuition!

All the talk these days is about the higher costs of college tuition. But what often gets overlooked are all of the other college expenses that can make going to college more crushing financially.

However, most private student loans can cover virtually all kinds of college expenses, including:


  • Room & Board
  • Off-campus housing
  • Registration fees
  • Text books
  • Laptop/Internet access
  • Travel expense to get to and from classes

Who is eligible for a Private Loan?

Keep in mind that each private loan lender has certain eligibility requirements. However, for most private student loans, you must meet the following criteria:

• Must be creditworthy applicant or have a creditworthy co-borrower
• Must be a U.S. citizen, U.S. permanent resident, or international student with a qualified U.S. citizen or
U.S. Permanent Resident co-signer
• Must be within age of majority by your state of residence (typically 18 years of age)
• May be a full time, half time, or less than half time (including continuing education) student

How can you qualify for a private student loan?

Because private student loans are made by private institutions such as a bank or other private lending institution, your ability to get a loan will be based on merit, specifically good credit, essentially, a high enough credit score. The availability of a co-signer with good credit is even better from the lender’s perspective because taking into account a co-signer’s good credit, your combined probability of repaying the loan is higher. So, the lender can be more likely to approve you for a private loan.

If you think about it, most consumer loans require collateral, such as a house or a car. If a borrower doesn’t repay the loan, then lender can repossess your property, so it can sell it to recoup the money it had loaned out.

In the case of education loans, there really is no collateral; i.e., how can a lender repossess your education? It can’t. That’s why lenders rely on a good credit record, since that is a strong indicator that you and/or your co-signer have a proven track record of repaying on your credit cards or other loans in a timely and responsible manner.

Co-signers with good credit can help you qualify for a private loan, lower your borrowing costs and improve your own credit score!

Because private student loans are based on merit, the rate you receive is based on your credit history and income. If you don’t have one or the other or both, that’s where having a creditworthy co-signer can be invaluable.

Since the loan amount and your interest rate will be based on several criteria, often a credit-worthy co-signer can help you qualify for a private student loan. In fact, a co-signer with good credit can help you obtain a private loan with a lower interest rate, saving you a ton of money over the life of the loan.

Another added benefit of a creditworthy co-signer is “guilt by association but in a good way.” This means that the timely, responsible repayment of your private loan under a co-signer arrangement will be a positive way to build up your own credit record.

For more information on Private Student Loans visit http://www.onesimpleloan.com/private_loans.asp


Thursday, December 06, 2007

Recent College Grads! See how consolidating your student loans after college can change your life!

Sure, your student loans get you through college but don’t you just wish they would go away after graduation? I mean, after college you’re ready to get move on with you life and pursue your dreams. The last thing you want lagging behind you for years is your student loans.

But have no fear students and grads, because there is a way to get rid of the hassle of dealing with your student loans after college, and let me tell you, it could really change your life for the better!

Student Loan Consolidation, a Federally-backed program, lets you take all your student loans, all your high interest rates and all your payments and transform them into one simple manageable repayment package. What student loan solution could be better than that!

Some of the benefits of student loan consolidation:

When you consolidate your student loans, you no longer have to think about when and to whom you owe money to. Consolidation will simplify your life by transforming all your loans into one simple manageable repayment package created just for you thereby giving you just one new loan and one new lender. Furthermore, you can consolidate multiple Federal and Private student loans into just two consolidation loans, thereby minimizing the amount of loans.
Consolidation can offer you a low interest rate, so you can stop paying different rates to different lenders for different student loans. No more worries about facing the possibility of an escalating interest rate every year! A consolidation loan takes the average interest rate of all your open loans and that average, usually lower, would be your new interest rate!


On top of an already low interest rate, many student loan consolidation companies, like OneSimpleLoan for example, offer borrowers a money-saving interest rate reduction for making your monthly payments via secure auto-pay from your checking or savings account.

The interest you pay on your new consolidation loan may be tax deductible! An annual tax deduction of up to $2,500 is available for interest paid on tax qualified education loans. Visit
www.irs.gov/taxtopics/tc456.html or contact your tax advisor for more information.

Consolidating your student loans may also improve your credit score. Because student loans constitute money owed, having many outstanding loans could adversely affect your payment history and your outstanding debt, which compromises part of your total credit score. By consolidating your student loans, your many loans become just one new consolidation loan, thereby minimizing your debt image. By improving your credit score many students may be more likely to qualify for many post-college comforts such as getting an apartment, house, or new car since credit scores play a major role in determining whether or not you qualify for such luxuries.

As you can see, it’s obvious that based on the benefits, consolidating your student loans could easily save you thousands of dollars in fees you are now or might soon be paying in higher interest rates and high monthly payments. However, there are some situations where consolidation may not be advantageous. That’s when speaking to reputable student loan consultants such as those at OneSimpleLoan may be beneficial to you.


All in all, who couldn’t use a couple thousand extra dollars in their pocket? That extra money coupled with the possibility of an improved credit score could help you buy a new car, put a down payment on a house, or even move to the big city in pursuit of your dream job after college.

So, if there’s anything you should consider after graduation, it’s exploring the possibility of consolidating your student loans and you could see just how different your life can be after you do!

Tuesday, December 04, 2007

Real-Time PINs Available Soon for FAFSA Applicants

Attention all students!

As the new year dawns upon us, many of you will be applying for financial aid for the 2008-2009 school year using the FAFSA form (fafsa.ed.gov). You'll be happy to know that soon you will not have to wait until you recieve your PIN numbers in the mail before you can sign your applications for processing! Read more below.

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Beginning January 1, 2008, students and parents will be able to apply for and receive a "real-time" PIN when completing a FAFSA on the Web (
www.fafsa.ed.gov) or when applying for a PIN on the Department’s PIN Web site (www.pin.ed.gov).

After determining that 97 percent of PIN applicants provide correct information (i.e. social security number), the Department decided to make this real-time PIN available not only for first-time PIN applicants but also for those who have lost or forgotten a previous PIN. After receiving the real-time PIN, applicants will be able to change the PIN to a number that is meaningful to them.

First-time PIN applicants will instantly receive a conditional PIN that will allow them to electronically sign their FAFSA on the Web. The conditional PIN can only be used to sign the original application that students and/or parents are completing at the time they applied for the PIN. The data supplied by the PIN applicant will then be verified with the Social Security Administration (SSA). If the applicants’ PIN information is accurate, the conditional PIN will then be good for all processes that require a PIN in the future. If the applicants’ data does NOT pass the SSA match, they will receive a SAR with a rejected signature comment and the school will receive a rejected ISIR. The students and/or parents will then need to provide the required FAFSA signatures. Students and parents will need to correct PIN data to receive their PINs.

Source:
http://www.nasfaa.org/publications/2007/rnpin120407.html

The
2008-09 Process Guide for Student Web Application Products provides more guidance about how the real-time PIN process will work.