Student Private Loan Consolidation
Student private loan consolidation is a constant for internet searches. It seems that whoever said education is the best of investments never had a problem paying college fees! And with mounting student debt, higher education is taking on a different meaning!
It is a bit of a quandary. You need a loan to get through college, yet you are most able to pay back this type of loan by going to college! It is, however, great motivation to pass with good grades!
Then there is the problem of getting a student loan. Seems like the easy thing to do, doesn’t it? But you would be surprised at how many students have a hard time getting one. But, it is hardly impossible.
With American debt forever climbing, it is imperative to get some good guidance with debt overload to avoid personal bankruptcy. If student private loan consolidation is on your list of to do’s, now is the best time to start! After all, it is so easy to let it go another day – and then….well you know. It just gets worse!
When looking for a student private loan consolidation, make sure to explore the usual options first: Subsidized & Unsubsidized Stafford Loan, the Federal Perkins Loan, the Federal consolidation loan, the Federal+ loan for parents, Direct PLUS loan, the Private student loans, and the like.
Important to note is: Is the student loan you are applying for available for undergraduate studies or graduate studies (or possibly both)? Is the loan need based or merit based? What documents will you need to demonstrate financial need? Are there any specific loan options available to you if you are applying to specific programs, e.g., Federal Nursing Loan and the Health Professions Student Loans?
Keeping all this in mind will be a good first step towards getting a student private loan consolidation. Remember your education should be a stepping stone to a better life, not a means to get stuck into a deeper financial hole.
A good place to start is online. Do the research before anything else. Student private loan offers can change from lender to lender and it is good, policy to get as many quotes and compare. Start with the list of options you see here. After all, you don’t want student debt to spiral out of control!
Student loan forgiveness programs
- Income-driven repayment forgiveness. The federal government offers four main income drive repayment plans, which allow you to cap your loan payments at a percentage of your monthly income. When enrolled in one of these plans, your remaining loan balance will be eligible for forgiveness after 20 or 25 years, depending on the plan. These plans are most beneficial for those with large loan balances relative to their income.
- Public Service Loan Forgiveness. Public Service Loan Forgiveness is available to government and qualifying nonprofit employees with federal student loans. Eligible borrowers can have their remaining loan balance forgiven tax-free after making 120 qualifying loan payments. In order to benefit from PSLF, you’ll need to make payments while enrolled in an income-driven repayment plan. Otherwise, on a standard repayment plan, the loan would be paid off before you’re eligible to benefit from forgiveness.
- Teacher Loan Forgiveness. Teachers employed full time in low-income public elementary or secondary schools may be eligible for Teacher Loan Forgiveness after working for five consecutive years. They can have up to $17,500 in federal direct or Stafford loans forgiven. To qualify, teachers must have taken out loans after Oct. 1, 1998.
- Student loan forgiveness for nurses. Nurses shouldering student debt have several options for student loan forgiveness: Public Service Loan Forgiveness, Perkins loan cancellation, and the NURSE Corps Loan Repayment Program, which pays up to 85% of qualified nurses’ unpaid college debt. Public Service Loan Forgiveness may be the most likely option for most nurses — few borrowers have Perkins loans, and the NURSE Corps program is highly competitive.
- Obama student loan forgiveness. There’s no such thing as “Obama Student Loan Forgiveness” However, some student “debt relief” companies use it as a catch-all term for free federal programs — which they charge to enroll borrowers in. If you encounter a company offering “Obama student loan forgiveness,” consider it a red flag. Enrolling in federal programs like income-based repayment and federal student loan consolidation is free to do on your own through the Department of Education.