How Do Student Loan Payment Calculators Help Save Money?
Once grace period begins you will have approximately up to 9 months (depending on the type of student loans you have obtained) to choose a student loan repayment plan. Grace period also is a great time to plan your future and find a job. Selecting the best student loan repayment plan requires correct calculation and a student loan payment calculator is just the tool you need.
How to Calculate the Best Repayment Plan?
While understanding that every student loan repayment plan is suitable for different people, use a student loan payment calculator to find out the amount of annual income you would need to repay every type of repayment plan you are offered. Keep in mind that private student loans carry different laws than federal student loans. Once you’ve calculated and found the most attractive plan, see if the annual income you are supposed to get from your new job will cover the repayment plan without putting too much financial pressure on yourself.
Several repayment plans offer a very good interest rate but, require you to pay the loan back in a relatively short period of time. This option would be great for anyone expecting a steady long lasting income source. Remember, finding the most comfortable student loan repayment plan for your case is what matters.
Using a Student Loan Payment Calculator to Calculate Several Student Loans
If during college you have obtained more than one student loans, not necessarily do you need to choose a separate repayment plan for each one. Student loan debt consolidation will be an ideal solution for you. By joining a student loan consolidation program you will have the ability to merge all your loans in to one and manage them with a low, fixed rate monthly payment.
People that have obtained private loans for student with bad credit will benefit from consolidating their loans as well. The fact that you paid off your debt all at once will boost your credit ratings. When consolidating student loans be sure to use a student loan payment calculator to find the best student loan consolidation repayment plan. Don’t forget to compare offers from 3 different lenders to get a better idea of the rates and fees offered and eventually make a financially educated and beneficial decision. Be sure to find the best student debt help information for the best deal available.
Bad credit student loans are a great solution for students labeled as bad credit. Visit us for more student loan options.
Article Source: http://EzineArticles.com/?expert=Joel_Cohen
Thursday, July 5, 2007
Need Help Paying Back Student Loans?
Many college students and graduates are looking for a solution for their student loan debt. While borrowers may be having difficulty paying back student loans, there is help. Solutions for paying back student loans are available.
What causes difficulty in paying back student loans?
New college graduates may find that it takes them longer to find a job than they expected. While there’s a six month grace period from the time students graduate until repayment begins, sometimes it takes six months or longer to find a job.
Many recent graduates who are employed are underemployed—working part-time or temporary jobs until they find a permanent position. During this time they may need help in making loan payments.
New college graduates can use several strategies to help with student loan repayment. Taking on additional part-time jobs or freelancing may be an option.
It is also wise to keep living expenses low the first few years out of college. Graduates can live with a roommate, or downsize into a smaller apartment. If new graduates are still looking for a job, it may be a good idea not to move until permanent employment is found. Then it will be easier to move to an area closer to the job.
Applying for a forbearance may be an immediate solution for times of difficulty making loan payments. A forbearance is temporary period of suspension of payments on a federal or direct loan after repayment has begun, and if the student does not qualify for deferment.
This means that if a student has already started paying back loans, they can apply for a suspension of payments on the grounds of financial hardship. A forbearance must be applied for through the lender. Being able to hold off payments for a few months can be a big help during a time of financial hardship.
Another student loan debt solution is to consolidate payments. Unless consolidated, each student loan is accounted for and paid separately. When a student graduates they will receive paperwork and payment slips for each loan. 2, 5, 12… no matter how many loans were taken out, they will be billed separately. Adding up all of these individual loan payments could total $300-$1000 per month or more! Not many students can afford such payments.
That’s where consolidation comes in. Consolidation is a process that combines all of the student loans into one loan. Borrowers can dramatically reduce monthly payments of student loans by consolidating. Average monthly payments could be less than $100 to around $250 per month. This is just an estimate. The monthly payment depends on the total amount borrowed, the interest rate and the way that loans are consolidated.
Consolidating through The Income Contingent Repayment plan is designed to help make repaying student loans easier for students who intend to pursue jobs with lower salaries, such as careers in public service. The monthly payment amount is adjusted annually, based on changes in family size and annual income. This program is only available through the US Department of Education, not a lender or bank.
Finally, the Graduated Repayment Plan starts the payments at a low level (usually interest only) and gradually increases the payments until the balance is paid. This is helpful for graduates because payments are low when the first graduate, and increase as earning power increases over the years. This plan is available by consolidating through a bank or other lender.
It is important to note that according to current regulations student loans may only be consolidated once. So borrowers who have already graduated and consolidated with a standard plan cannot take advantage of the income contingent or graduated plans. For borrowers who have already consolidated, a forbearance may be the best option for temporary relief of student loan debt.
Use the student loan repayment calculator from finaid.org to find out what loan payments could be using different types of consolidation.
College graduates can find student debt relief using one of the solutions mentioned above. Discuss loan repayment options with your lender and see what can be done to help you repay student loans.
About the Author: Michael Carter is a contributor at College Financial Aid Guide, an online informational resource for educational funding, scholarships and student loans. Find out more about Paying Back Student Loans
Article Source: http://EzineArticles.com/?expert=Michael_Carter
What causes difficulty in paying back student loans?
New college graduates may find that it takes them longer to find a job than they expected. While there’s a six month grace period from the time students graduate until repayment begins, sometimes it takes six months or longer to find a job.
Many recent graduates who are employed are underemployed—working part-time or temporary jobs until they find a permanent position. During this time they may need help in making loan payments.
New college graduates can use several strategies to help with student loan repayment. Taking on additional part-time jobs or freelancing may be an option.
It is also wise to keep living expenses low the first few years out of college. Graduates can live with a roommate, or downsize into a smaller apartment. If new graduates are still looking for a job, it may be a good idea not to move until permanent employment is found. Then it will be easier to move to an area closer to the job.
Applying for a forbearance may be an immediate solution for times of difficulty making loan payments. A forbearance is temporary period of suspension of payments on a federal or direct loan after repayment has begun, and if the student does not qualify for deferment.
This means that if a student has already started paying back loans, they can apply for a suspension of payments on the grounds of financial hardship. A forbearance must be applied for through the lender. Being able to hold off payments for a few months can be a big help during a time of financial hardship.
Another student loan debt solution is to consolidate payments. Unless consolidated, each student loan is accounted for and paid separately. When a student graduates they will receive paperwork and payment slips for each loan. 2, 5, 12… no matter how many loans were taken out, they will be billed separately. Adding up all of these individual loan payments could total $300-$1000 per month or more! Not many students can afford such payments.
That’s where consolidation comes in. Consolidation is a process that combines all of the student loans into one loan. Borrowers can dramatically reduce monthly payments of student loans by consolidating. Average monthly payments could be less than $100 to around $250 per month. This is just an estimate. The monthly payment depends on the total amount borrowed, the interest rate and the way that loans are consolidated.
Consolidating through The Income Contingent Repayment plan is designed to help make repaying student loans easier for students who intend to pursue jobs with lower salaries, such as careers in public service. The monthly payment amount is adjusted annually, based on changes in family size and annual income. This program is only available through the US Department of Education, not a lender or bank.
Finally, the Graduated Repayment Plan starts the payments at a low level (usually interest only) and gradually increases the payments until the balance is paid. This is helpful for graduates because payments are low when the first graduate, and increase as earning power increases over the years. This plan is available by consolidating through a bank or other lender.
It is important to note that according to current regulations student loans may only be consolidated once. So borrowers who have already graduated and consolidated with a standard plan cannot take advantage of the income contingent or graduated plans. For borrowers who have already consolidated, a forbearance may be the best option for temporary relief of student loan debt.
Use the student loan repayment calculator from finaid.org to find out what loan payments could be using different types of consolidation.
College graduates can find student debt relief using one of the solutions mentioned above. Discuss loan repayment options with your lender and see what can be done to help you repay student loans.
About the Author: Michael Carter is a contributor at College Financial Aid Guide, an online informational resource for educational funding, scholarships and student loans. Find out more about Paying Back Student Loans
Article Source: http://EzineArticles.com/?expert=Michael_Carter
Student Loan Article 1
More About Student Loan Debt Consolidation
So you have spent your time at college and now you are sat on a student loan and if you are like a majority of other students you have a credit card debt as well. As a clever person you will probably have worked out by now that you are paying back an absolute fortune in interest and charges.
You could be saving up to 54% yes Fifty Four Percent of the amount you pay back in charges and in some cases you can reduce what you need to pay back. With Student Loan Debt Consolidation depending on how much you have to pay will depend on how long you can spread the payments over between 12 and 30 years.
You can pay regular monthly payments over the length of your loan, you can take an interest only payment for the first 4 years of the loan to give you a head start with your new career while you still get to reduce your Student Loan Debt Consolidation.
An income sensitive repayment plan on your Student Loan Debt Consolidation means that you can gradually increase what you are paying back monthly as your total gross monthly income increases. Be warned that you will need to provide proof of what you are earning and it is up to the lenders how much you repay each month.
Student Loan Debt Consolidation is important if you are to move forward with your career and your life after college.
Putting all your debts into one place with a low interest rate is the best way to reduce what you owe and it makes it a lot easier to manage your debt so if you have a debt from college then you should look into Student Loan Debt Consolidation.
So you have spent your time at college and now you are sat on a student loan and if you are like a majority of other students you have a credit card debt as well. As a clever person you will probably have worked out by now that you are paying back an absolute fortune in interest and charges.
You could be saving up to 54% yes Fifty Four Percent of the amount you pay back in charges and in some cases you can reduce what you need to pay back. With Student Loan Debt Consolidation depending on how much you have to pay will depend on how long you can spread the payments over between 12 and 30 years.
You can pay regular monthly payments over the length of your loan, you can take an interest only payment for the first 4 years of the loan to give you a head start with your new career while you still get to reduce your Student Loan Debt Consolidation.
An income sensitive repayment plan on your Student Loan Debt Consolidation means that you can gradually increase what you are paying back monthly as your total gross monthly income increases. Be warned that you will need to provide proof of what you are earning and it is up to the lenders how much you repay each month.
Student Loan Debt Consolidation is important if you are to move forward with your career and your life after college.
Putting all your debts into one place with a low interest rate is the best way to reduce what you owe and it makes it a lot easier to manage your debt so if you have a debt from college then you should look into Student Loan Debt Consolidation.
For more valuable debt relief and free Student Loan Debt Consolidation advice try visiting Online Money Advice located at http://www.onlinemoneyadvice.net where you will quickly and easily find a wealth of information on Student Loan Debt Consolidation and credit counseling advice that will help you financially and give you peace of mind for the future.
Article Source: http://EzineArticles.com/?expert=Steven_Turner
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