i am a student in college and need information about this please
2007-03-25 10:23:53 · 1 answers · asked by stillincollege 1 in Business & Finance ➔ Credit
Read Suze Orman's "Young Fabulous and Broke" book. It's amazing. She has an entire section about student loans. Among a few of the points that you need to know about... You can only consolidate once. Also, if you pay your bills on time, for 3 years, and you get a quarter point interest reduction. Also, if you file for bankruptcy protection, you must still pay your loans back. Again, read Suze Orman's book. It helps a lot. There is a lot of practical advice for young people.
2007-03-25 15:05:19 · answer #1 · answered by chaseunchase 4 · 0⤊ 0⤋
Student consolidation loan involves converting the loans taken by the students or parents into a single big loan from one lender. They are available as FFELP, FISL, Perkins, HEAL, Health Professional Student Loans, NSL, Guaranteed Student Loans and Direct loans. Few of the lenders let you consolidate these loans as private loans.
You pay lower monthly installments since the duration of these loans is more than 10 years. Usually, these loans last for 12-30 years according to the amount borrowed. This is an easier way for you to repay the loan without having to face financial crunch. However, you pay more interest as the loan period is more.
If you set the loan period less than 10 years, your monthly payment may reduce but your loan terms may not be more than 10 years. But you should ensure that you pay your monthly installments regularly. Failure to do so will raise the interest you have to pay your lender.
2007-03-26 00:37:05 · answer #2 · answered by hendy h 2 · 0⤊ 0⤋