What to Keep in Mind in Federal Student Loan Consolidation


When it becomes very difficult for you to handle federal student loan settlements, it is only right that you try to look for ways to ease the burden.  Fortunately, the government itself has introduced a method that would certainly make it easier on you.  This method is called federal student loan consolidation.  With consolidation, the repayment process would certainly be more bearable.  Whether you are still in school or are already trying to survive in the job market, it could significantly save you from so much distress.  However, you do have to learn a few things about federal student loan consolidation before you could proceed.

First of all, you should always bear in mind that it mandatory that you go through federal student loan settlements.  It is your duty to the state that had shouldered your expenses in school for quite a time.  As part of the options to ease the debt burden, you could see student loan consolidation.  This means that all your loans from Stafford Loans, Federal Perkins Loans, and PLUS Loans would be consolidated into one.   Once this happens, you certainly would lessen the hassle of repaying three loans at one time.  You may still be obligated to repay but in a more convenient manner.

Another good thing about consolidation as a process in federal student loan settlements is that the term of payment is longer.  This means that you would not be burdened with a huge amount every time that you have to pay.  In fact, the term of repayment could last from 10 to 30 years.  Of course, there is a disadvantage if you choose to have a much longer repayment term.  This means that you have to deal with the payments for a long time and this could indeed be annoying at times.  This is the reason why despite the offer of a longer term, there are individuals who still opt for just 10 years for their federal student loan repayments.

You do not have to worry about the amount of interest to be paid.  While it is actually fixed, you could be sure that it manageable.  This is because the amount is based on the weighted average of the three loans that have been consolidated.  This means that you would still get a fair deal because the interest is in accordance to the total amount of loans that you have acquired.  With all the points mentioned above, it is clear that federal student loan settlements are made more manageable because of loan consolidation.


Some Ideas to Pay Off Student Loans Fast


The moment that you graduate college, you would certainly get this elation that you could not easily describe since you still do not contend with the federal student loan settlements. However, after a week of happiness, you would have to confront the usual problem of being able to pay off your student loans at the soonest time possible.  This is because any delay could be a huge burden on your budget.  Considering that you have just started a career being fresh out school, there may not be enough room in your monthly budget to cover the loan.  However, you could learn a few proven ideas that could make you unburden yourself with the student loan.

Before you try working on yourfederal student loan settlements, you should remember that you need to have positive attitude about this.  There are some individuals who set out with a gloomy mindset already.  They believe that even as they do their best to repay the loan, they still could not do so as fast as they want it.  As a result, they would immediately give up the moment that challenging situations arise.  You need to be positive about it.  You need to believe that you would be able to repay the loan fast enough.

It is best that you get a comprehensive understanding your loan so that you would not have a tough time in federal student loan settlements.  It is expected that while you were processing your application, you might had not given much attention to the details.  All that you ever thought about then was to comply with the requirements so that your loan application would be approved.  Now that you are paying it, it is best that you go through the details.  Your comprehensive understanding of the loan would be the basis for planning your federal student loan settlements.

One of the easiest and proven methods though is start paying early.  If you are already making payments even while you are in school, you would surely be having a smaller balance to deal with once you have graduated.  Of course, this could be a little demanding on your budget since you are in fact living on allowance.  There are students who make it a point to have a part-time job though even while they are in college.  This may be a great idea too if you wish to pay your loan in no time.  Federal student loan settlementsis clearly something that is easy to deal with.

Teacher Loan Forgiveness Programs


The Teacher Loan Forgiveness (TLF) Program is created to help people in the teaching profession pay off their student loans. Teachers who work full time teaching at an elementary or secondary school for low income families may qualify for up to $17,500 worth of forgiveness on select loans. It is important to understand under what conditions your loans will be forgiven however.

If you have defaulted on your subsidized or unsubsidized loans, then you will not qualify for teacher loan forgiveness. By the end of your fifth year teaching, your loans you are seeking forgiveness for must be made. The school that you work for must be an elementary or secondary school that resides in a district that qualifies for funds under Title I of the Elementary and Secondary Education Act of 1965.

By being certified by the chief administrative officer of the school you work at, you have the possibility to receive $5000 worth of forgiveness. For highly qualified teachers, you may receive up to $17500 worth of forgiveness. To be considered highly qualified, you must have gotten a full state certification as a teacher or pass the state teacher licensing examination. If you have had your license or your certificate waived, even on an emergency or temporary status, you will not qualify as a highly qualified teacher.

Highly qualified elementary and middle/secondary school teachers must have a bachelor’s degree at minimum and pass a rigorous state test showing overall knowledge of the school’s curriculum material, along with various other qualifications. To find out if the school which you work at is low-income, you can check the list of low-income schools published by the US Department of Education.

You can begin the Teacher Loan Forgiveness Application once you have finished your fifth year teaching requirement. The Teacher Loan Forgiveness Application can be found here: http://ifap.ed.gov/dpcletters/attachments/GEN1216Attac18450059TLFAppFINALExp20140531.pdf The certificate section of the application must be done by the chief administrative officer of the school that you work out. You can find out more about the application and its process by following along with the link above.

Teacher Loan Forgiveness Programs are great for qualifying teachers of low-income families. Student loans can be a difficult and confusing thing to work out, but programs like Teacher Loan Forgiveness help out many students everyday. Check back for more information and help regarding student loans.

Public Service Loan Forgiveness


Public service loan forgiveness programs are for students who intend on working full time in the field public service. After making 120 qualifying payments on select Direct Loans, you may qualify for forgiveness. Types of loans that are acceptable for public service loan forgiveness are Direct loans. Federal Family Education Loans (FFEL) and Perkins Loans do not qualify for Public Service Loan Forgiveness.

To meet the requirements for a full time job, you have to work an average of at least thirty hours a week. This cannot include time spent on religious instruction, any forms of worship, or proselytizing. For those who have multiple part time jobs rather than one full time job, you may meet the requirements for public service loan forgiveness if between all of the part time jobs combined you work an average of thirty hours a week.

In order for the 120 payments you make towards your direct loan to count towards your public service loan forgiveness, you must be (at the time of your repayment) be working full time at a qualifying public service organization. You must continue your full time work during the period of time that you apply for the public service loan forgiveness and at the time that your forgiveness is granted.

It will take a minimum of ten years to complete the 120 qualifying payments in order to receive public student loan forgiveness, so it is helpful for you to submit and follow the Employee Certificate Form to FedLoan servicing. After reviewing your application FedLoan will decide if you qualify for the Public Service Loan Forgiveness. You will be notified if you do not qualify or if there are additional things you need to fill out. In the case that you are not already filing your loans through FedLoan, your loans will be transferred to FedLoan as a single loan, and earlier payments that were made will be looked at and determined whether or not they qualify for public service loan forgiveness as well.

Paying off your student loans can be a long and strenuous task, but programs such as Public Service Loan Forgiveness programs can greatly help you get your loans paid off as quickly and easily as possible. Check back frequently for more information and advice on paying off your student loans.

Student Loan Grace Period


Student Loan Grace Period

College is an expensive investment, so most students take out student loans to help them pay for the costs associated. Federal student loans are the most flexible type of loan and offer a grace period for paying off your loans. A grace period is a period of time where students do not have to pay for their loans.

When students don’t have a steady job, it is difficult for them to pay off their education. Grace periods are helpful for students who spend the majority of their time on their studies, rather than having a full time job. Most grace periods allow students to postpone their payment for at least six months after graduating, leaving school, or dropping below half-time enrollment. Because of this option, students can put all their attention in to their studies rather than paying off their loans.

Unsubsidized and subsidized loans both offer grace periods for students. However, Federal Direct PLUS Loans for Parents do not offer a grace period to parents. They are required to start their repayment plan as soon as the loan is given out. Sometimes, grace periods are not enough to help students pay off their loans. It has become increasingly more difficult for students graduating from college to find a job under their degree. Because of this students may continue to struggle to repay their loans even through their grace period.

When grace periods are not enough to help you pay off your student loans, consolidation can be another option. By consolidating multiple loans in to one monthly payment you are left with a more manageable payment.

It is important to keep in mind that the point of the grace period is to give you time between graduating and finding a job. Do not use your grace period as a time to postpone your payment so you can spend your money elsewhere. It is encouraged to pay your loan off even if you’re in your grace period, as it will only expedite your repayment process and get your loans paid off as quickly as possible.

Having a grace period when paying off your student loans can help you pay off your student loans in a way that is easier on you financially. Check back frequently for more tips and information on repaying your student loans.

Student Debt Crisis


Student Debt Crisis
One of the main concerns of college students currently is the student debt crisis. Within the last two decades tuition has quickly increased and is higher than ever. Coupled with a weakened economy, borrowers are left unable to pay off their loans. There are many factors which have contributed to the student debt crisis, including an increase in people obtaining a higher level degree, the increase in pay for jobs offered to those with a higher degree, and irresponsible borrowing of loans.

With more people pursuing a higher degree of education, specifically a graduate degree, and increase in debt has resulted. Students who work towards obtaining their graduate degree pay roughly $40,000 in tuition and other expenses directly related to getting their degree. This is four times what it cost to get your graduate degree twenty years ago. Although this may seem like a long period for prices to increase, however these are the bosses and executives who you are paying four times the amount they did to obtain their job through a graduate degree.

Irresponsible borrowing is a major factor that contributes toward the student debt crisis. Students are borrowing more than they can afford to pay back, and are making their payments too high. When payments are too high for students, they end up pushing them back, and end up defaulting on their loans. At this point it seems as if students have dug a hole and buried them so deep that they cannot get themselves out.

There is an upside to this however. Along with an increase in debt has come along an increase of income. People who get their higher level degrees, although acrruing more debt, are able to pay it off at the same rate because they are making more money. Basically the amount of increase in pay trumps the amount of debt that is accrued.

The student debt crisis is something to be aware of, and is something to try your best to avoid. Check back for more information on student loans and debt.