You have earned a college diploma...now what?

In addition to beginning a career and a new life, it also may be time to start repaying your student loans.

When a student graduates from college, leaves school or drops below half-time enrollment, he triggers the process to begin repayment on student loans. In some instances, there may be a short period of time-up to six months-before they need to begin making payments. Regardless, it is important to proactively manage your education debt and put yourself on the path toward a successful repayment experience. Says Martha Holler, a spokesperson from Sallie Mae, the nation's No. 1 paying-for-college company: "Managing your student loan repayment will help you build good credit history, which will, in turn, make getting your next loan-for a car, house or further education-that much easier."

Unlike other types of consumer debt, student loans typically come with offers of interest-rate reductions or account credits that reward the borrower for timely payments, making it all that more important to get in the habit of paying student loan payments on time. Why not take advantage of these incentives and save money while you build your good credit?

There are a variety of ways to make your student loan payment. Holler advises graduates to consider a repayment plan that is consistent with their income, lifestyle and other debt obligations. In addition, students may prepay student loans, if possible, with no penalty. There are several loan forgiveness programs available to those who pursue certain careers in select areas. Educate yourself to see whether you can qualify to have your loans completely discharged.

"There are many payment relief options available," adds Holler. "If you experience financial difficulty, contact your lender immediately so that you can take advantage of the options available to you. The earlier you take action, the more options you will have and the less likely it is that your temporary financial difficulties will have a long-term negative impact."

For borrowers having difficulty making their payments, there are repayment and deferment options that can ease the burden, especially for new graduates.

Many students and graduates are facing with struggling to repay their student loans. They have to refinance it in order to lower their monthly payments. Refinancing student loans can be a good idea under certain circumstances, but not always. As of late, interest rates have been low but they are in fact rising and most economists agree that they will continue to rise. Most student loans are based on a variable interest rate and will not be locked-in until you refinance or get a loan consolidation.

The opportunity to refinance is only available to those individuals who have established good credit by paying their loans back on time. If you have missed payments or have been late then you can pretty much forget about it. As a rule, refinancing rates are usually offered at 1 or 2 points below what your current rate is. This is to make the loan more attractive, but you must take caution.

It is attractive to pay less per month but oftentimes what was a 5 year loan turns into a 15 year loan. You can, and I highly recommend that you do, avoid this by paying off as much of the principal as possible. This will shorten the life of the loan and the amount of interest that you pay. This is of course ideal in the best of circumstances but in those times when money is tight you can cut back on your payments, even to the minimum.

Like every other type of bank loan, you receive in the sense that you borrowed the principal upfront and now the true cost of the loan can only be calculated after all of the principal and interest has been paid back in full. That is probably where many students find themselves having difficulties. Far too many treat their student loans as if they were free money. No doubt a great many do the same with credit cards as well but that is a subject for a different day.

Most students realize benefits of student loans to help them getting their education. They are an integral part of our society and play an important role in bettering ourselves and the world we live in through education. If you hold a student loan then you owe it to yourself to know exactly where you stand with it and make the proper adjustments if need be.

One of your first priorities when finishing up high school should be to look for financial aid for college. This way when you get into that University, you won't be pondering numerous ways to pay for it. The funds will be in place. When you apply for student loans, the key is to be the early bird. Yes, that whole early bird gets the worm spiel that your grandma laid on you actually has some merit to it. I recall when I was anxious to head off to a University.

Are you headed off to college? Well, congrats on taking that next big step. Now it's time for reality to kick in with a vengeance. If mom and dad aren't footing the tuition bill, then it's certainly time to start searching for student loans. When we finish high school, a great weight is lifted. It's a good feeling to be done with that dry and awkward phase of life.

I was told by my high school math teacher to apply for student loans at the beginning of the year. Don't wait till the fall when classes actually begin. All of the funds will be dispersed and you will be left broke. I've seen this happen far too many times. Students wait until the summer to apply for student loans and financial aid, but when the fall semester or quarter starts, the funds have not come through yet, or worse, there weren't any left.

The cool thing about financial aid these days is the access. Now, I don't necessarily mean that there are more funds at our beck and call, but it is certainly simpler to apply for them. With the keyboard at our fingertips, we can whip through FAFSA and apply for student loans with ease. The government has a large chunk of money available each year. If you're a struggling student, then why not take advantage of this?

If you are in high school and getting ready to graduate, get a jump start on your search for student loans and grants. Just because you've found the college of your dreams doesn't mean you can afford it. We have to take the initiative in this situation and apply for student loans, scholarships, and any other forms of financial aid we can find. Attending a four year University can cost some major bucks. Don't wait until the last minute to deal with it. Jump online and begin your search for student loans today.

Finally, it's time to venture out on our own. Maybe gain some independence. Oh, and don't forget, grapple with some hefty expenses. However, don't fret; financial aid is just around the corner. Your need for student loans is inevitable, but at least it's easy.

Consolidating Student Loans Can Boost your Credit Score

Most students take out numerous loans for college, each with its own interest rate and its own monthly amount.  The plethora of different loan sources is a great benefit in terms of paying for college, but when it comes to credit rating, this long list of outstanding loans can put a serious damper on your overall score. 

By consolidating student loans, your credit report will show one combined loan, usually with a much lower overall payment, which equates to a more favorable credit rating.  By consolidating student loans, you most likely also benefit from a much lower payment, thus lowering your debt to income ratio.

Consolidating Student Loans Reduces Debt to Income Ratio and Increases Buying Power

Having a low debt to income ratio, or the monthly amount owed compared to the amount earned, makes an incredible impact on the amount of money you'll be able to borrow and afford for a first home or reliable transportation. 

The total amount of household debt in the US last year was more than 100% of disposable income.  Rising education costs have created a vicious cycle for today's graduating students.  As your debt to income ratio rises, so do the interest rates of each new loan.  Keeping this ratio low by reducing your monthly bills can literally save you tens of thousands of dollars over a lifetime. 

Consolidating Student Loans Reduces Dependence on Credit Cards

Having lower bills in the years following college means less reliance on high interest credit cards and other loans.  The average college student carries a whopping 6 credit cards with a total balance over $2100. 

This means that the $100 credit card purchase for new work attire could cost more than $200 over the 12 months it takes to pay the full balance.  Fortunately, smart financial planning, including consolidating education loans, can help students and young professionals live a life free of high interest debts.

By Consolidating Student Loans, You are Locked into Today's Low Fixed Rates

Just because interest rates are low today doesn't mean they will stay that way.  In fact rates over the last several years are lower than they've ever been in recent history.  It's amazing how much a small percentage point can save or cost on a college education bill over the course of a loan repayment.

The Federal Consolidation Loan allows you to lock into today's low interest rates when consolidating student loans.  Consolidation loans usually have a longer repayment period and a lower monthly payment than is available on the underlying education loans. 

By Consolidating Student Loans, you can Receive Additional Interest Rate Discounts

Companies that specialize in consolidating student loans like ScholarPoint.com offer additional consolidation benefits such as auto payments, and consecutive payments.

• Auto Payments:  Receive a reduction in your interest rate for making your payments automatically from your bank account when you consolidate your student loans.
• Consecutive Payments:  Some student loan consolidation companies give you the opportunity to reduce your repayment interest rate up to one full percentage point by simply making payments on time.
• No Interest Deferral:  Take advantage of the flexibility of student loans by deferring loans during qualified times.  While enrolled in graduate school, serving in the military, or volunteering with the Peace Corps, you can not only defer payments, but stop interest from accruing as well.
• Grace Period: Consolidating during your grace period allows you to lock in a rate that is lower than the standard repayment rate.

A lot of graduating students have taken loans for their further studies and want to consolidate student loans. You may be one of those responsible individuals who is working towards repayment of your college loans.  But here the problem is how to pay the monthly installments, as you have to make monthly payments to many. You could be in a situation wherein you are not able to come up with enough cash to make payment to all lenders. No matter what the reason is for not being to pay up your student loan installment on time consolidation of student loans is a good idea and it will positively reduce your financial tensions.

Another important thing is how much do you know about consolidating student loans, do you have an idea what it actually is? There are many advantages but can be disadvantages also to consolidate student loans. You will some answers to your doubts in this article. Just go ahead and read on.

You will first of all like to know how student consolidation loan works. The answer is very straightforward. Once you have graduated from college you will have to start repaying all your student loans. When you move to consolidate student loan that is in other words you will add up all the loans you have taken from all different places, as one single loan and will have to pay to one lender only and that to at a low interest rate and you may get more time to pay up also. By consolidation of student loans, you will be able to repay your college loan with ease and little tension.  Maybe this can also save hundreds of dollars for you in the long run.

There are advantages as well as disadvantages in every situation and it goes without saying that it applies when you consolidate student loan also. There is a grace period and if you consolidate your loans during this time, as you will know grace period is the first 6-month following your graduation, and start repayment you will be able to seize the benefit of a lesser consolidation loan interest rate.  But on the flip side you will have to forgo the rest of the grace period and start the payment within the next sixty days.

But to overcome this there is a good strategy of consolidating student loans almost at the end of the grace period to take advantage of both. You can discuss this issue with your lender.

It is also very possible to extend the repayment time when you go for student consolidation loans. The repayment period can be extended up to a period of thirty years! But that primarily depends on your entire education loan debt. As a result your monthly payment sum will noticeably go down. This has its own drawback as the longer you take to repay your loan the more you will have to shell out. It’s entirely your own choice and also the situation you are in.

Student loans are meant to help students who are unable to bear their educational expenses.  Student loans are different in different countries in the way they are devised, but then the common types of student loans available are the undergraduate loans, college student loans, private student loans and federal family educational loans.  Most of the student loans are issued by the government generally with lower interest rates when compared with the regular loans.

Student loan repayments are not made until the student completes his graduation.  This facility helps him to concentrate on his studies and earn some little amount of money while he is studying, but repayment has to start once he finishes his education.  There is a grace period of six months normally after the graduation, meant to be a cushioning period for the student to get into a job and start earning.  Under certain circumstances, the federal student loans can be forgiven on an income contingent plan after 25 years.  Also the payments are required to be paid off within a minimum period of time.

Private student loans are offered to the student based on the credit history of the applicant and the interest rate also will rely on this criterion.  People with good credit history will be provided student loans on a lower interest rate and less fees.  The advantage of private student loan is that, they have higher limits and also the repayment starts only after graduation.  Private student loans can be utilized for purchasing computers, books etc. and payment of tuition fees.

Federal student loans are either given to the parents or to their wards directly.  When the loan is availed by the student payments do not start when they are studying, but if it is given to their parents, they have to make payments immediately.  The loan limit may also higher in that case.  Federal loans do not require any co-signer as they are not based on the credit history of the applicants. 

The advantages of student loans over other kind of loans are given below:

The main advantage of availing student loan is that the interest rates are very low and are very lenient.  Even when the student enters his repayment period, there are many repayment options available, which allow the student to choose from so that they can be changed, based on the financial condition to suit their needs with some restrictions.  The loans can be repaid even over a period of 30 years.  Also, if the financial situation becomes worse the student will be eligible to defer repayment till 3 years. Some loans may even be forgiven.

Strategies adopted by students when they start repaying their student loans are as follows:

It might take either 6 months or more than that to get into a job by a student.  In such cases many students take up temporary jobs, or part-time jobs, freelance jobs etc till they find a permanent job.  Some share their room rent expenses with their friends by living together with, or resides nearer to the work place to cut down transportation costs.  In times of financial crunch, some of them apply for forbearance through a lender, this helps them to hold off the payment for few months.  Some students even go for student loan consolidation, which might bring them some relief.

After graduating high school, most of us have some confusion regarding our further education.

It is never an easy decision, attending Universities. Universities are expensive, although you can take out a loan, it will take years to pay back even if you become extremely successful with the career choices you make.

Today, large numbers of lenders are available in market to offer you college loans. Due to increased competition, some lenders are offering attractive student loan packages even with various liberties in repayments like payment holidays. That’s why students are advised to make a research on their own before finalizing a deal.

You can use Internet to search for private student loan as well as government student loan.

WHY apply online for student loans?

1. Online student loans are affordable with very low rate of interest.
2. They are unsecured, so your home equity or retirement accounts are never at risk.
3. They are very easy and fast, require no government forms and no deadline and quick approval.
4. Online student loans give you chance to earn on your investments and savings.
5. Require no paperwork.

HOW to apply online for student loans?

You can apply via lender or can directly login to the website, and can apply for an online student loan.

If you are a graduate, you will be asked to provide the following information:

1. Information , name and address of the applicant.

2. Two Personal references.

3. The Balance and rate of interest of your current student loans.

4. Your choice of online student loans payment plan.

As a conclusion online student loan are easy, less time consuming, need no paper work and offer you student loan with competitive interest rate. However it is recommended that you make a thorough research online to choose the best deal.Do not postpone, you can save a lot of money by getting a student loan.

              You are paying way too much for your Federal student loans, and your sick and tired of never having extra cash on hand for the things you'd like to be doing, and feeling a bit disillusioned about what life after graduation would be like. Your not alone! Millions of College Graduates are having the same feelings, facing the same fears, and wondering what in the world happened. It wasn't supposed to be like this! You may have had wide eyed visions of dinner parties and dining out. Driving a nice car and climbing your way up the corporate ladder. But it takes time to climb the ladder of success and in the meantime, once you graduate, your student loan grace periods begin to expire and before you know it, your deep in debt and in the red each month with no bling left over for any of those things you looked forward to being able to do. So you work and you scrimp and you save, but now the payments are behind and the service charges and late fees are adding up and you're not earning enough yet to make up for it. So what happens now you ask?? STOP... that's what.. and listen closely if you want this seemingly endless circle to stop so you can catch your breath.

Have you ever considered the possibility of consolidating your student loans? When you consolidate, you take all your student loan payments and combine them into one new consolidated student loan, one with a much lower payment total than what you had been paying. The most common reason graduates choose to go this route is to lock in a new loan with a much lower interest rate, which in turn creates more cash flow for you each month and more cash on hand for other expenses you'd much rather be spending your hard earned money on. Choosing to consolidate your student loans can save you as much as 63% from what you were paying for your student loans prior to consolidating. If this sounds like something you may consider doing, I hate to pressure you, but you need to be aware that if you are in fact thinking of consolidating your student loans, you need to act fast and do your research to find a reputable lender and apply as soon as possible because come July 1st 2006, just a short time from now, the Government is going to do it's yearly student loan interest rate adjustment and students all across the US are going to feel a crunch like no one has ever felt before. And it happens this year! Up until now, this has shown little effect on those desiring to consolidate their loans.

The US Senate has already announced that this is to be the single largest student loan interest rate hike we have ever seen. Federal Direct and Stafford loans alone will see a rate increase from 4.7% to 6.8% which equals ALOT of extra money flying out the window each month in interest alone! Their reason? The Senates $40 billion dollar deficit reduction plan, and the student loan industry will be hit the hardest. You must take action and get busy right now! Make sure you know what kind of student loans you presently have (Direct loan, Stafford loan, private loans etc) and what the grace periods are for each student loan that you have and what your eligible for. Then go on a massive hunt for the most reputable and established Lender you can find and fill out an application so you can lock in today's low rates before the hammer falls on July 1st.

For students who are unable to get student loans, the fun and kicks of college might be virtually non- existent. There are many more payments to make apart from books and Tuition. Just imagine how difficult it can be for students who also have to pay living expenses because they have to live apart from their families while in college.

Student loans can be a lifesaver because it saves many students from breakdowns that can occur as a result of the stress of payments and college courses. At the beginning, a student may find it difficult to get one of these student loans. This doesn't mean that getting student loans is a piece of cake.

These Federal student loans are supported by the government and this sees to it that you don't pay high interest rates. Any student who opts for the private student loans will have to pay increased interest rates and will need good credit records. Subsidized and unsubsidized rates are available for students obtaining student loans.

Except if the interest is being paid by another person that is when rates may accrue while the student who takes the loan is still enrolled in school. It helps a student to know that he/she won't have to pay any extra rates while he is still in school. You might not be so lucky if your type of interest rate is unsubsidized because rates will be accrued even while you are in school.

If these payments aren't made, the interest will keep rising thereby increasing the amount to be paid back, but the good thing is that you will have more time to pay. Are you a student interested in a federal loan? Then go ahead and fill out a FAFSA form. You may also have to fill a college scholarship profile application form.  No need to start getting hot and bothered over the cost because it is almost free.

FAQs about getting a student loans:

What is a 'credit record'? A credit record is, in essence a documented history of any type of credit you have been given for the last six years. It discloses how much you have been lent and whether you have ignored any obligations etc. A credit record allows potential loan providers to search through your financial past so that they will be able to make a determination as to whether to extend you a loan. The data on your record is complied by credit reference agencies for instance, Equifax and Experian. They take data from public documents (e.g. the electoral roll, legal judgments etc) and from loan companies as well as financial institutions: e.g. credit accounts, credit applications.

What is a 'credit check'? A credit check is a search performed by a possible lender to determine your suitability for borrowing. They will look at your credit record to see your current and previous credit history. They can then award you a credit score to identify whether the manner in which you control your financial affairs fulfils their criteria for being granted credit.

What is a 'credit score'? A credit score or credit rating is an approach that would-be loan providers use for calculating the credit eligibility of a borrower. They will research the potential borrower's credit file, the data on their application and the amount of loan requested. They will then employ a numerical rating process to evaluate the size of 'risk' connected to lending to the potential borrower.

Credit Reference Agencies :

Experian is one of the important credit referencing agencies in the country. Loan providers will turn to credit referencing agencies to find out about the qualifications of an applicant founded on their credit record. This is known as a credit file. As a consumer, it's possible to get a printed copy of your report from Experian to check that all the facts and figures on it are truthful and that your particulars aren't being used in some fraudulent way.

Equifax is one of the significant credit referencing agencies in the country. Equifax gathers all your financial data from various places to establish a file that details your personal credit history - i.e. your credit report. When you fill out an application for any kind of credit, loan providers will examine you report to see your credit record. You may get a printed copy of your credit report when ever you like to check that all is in order. The Equifax website has plenty of valuable advice on sensible financial choices and guarding yourself from fraudulent schemes.