Dealing with Student Loans Easily – Tips To Repay Without Having To Look Into Student Loan Refinance

Thousands believe student loan refinance is the only solution when dealing with an old and very costly student loan but in reality, that isn’t always the first or indeed a necessary step to take. Repaying a loan may take a considerable amount of time but once it’s paid off, it’s gone for good and it doesn’t have to knock your credit too badly either. However, how can you deal with a student loan without resorting to refinance? Read on to find a few simple tips that may prove useful to you.

Pay the Smallest Loan First

If you have taken several loans out, it’s wise to concentrate on the one which has the lowest amount to repay. That doesn’t mean to say you still shouldn’t make payments to any other loan you have but rather pay slightly more to this rather than the minimum payment. The smallest student loan can usually be dealt with quickly, especially if it’s a few hundred dollars. You don’t want student loans to take over your life long-term so it’s best to look into paying the smallest one first. However, if you have a loan which is ten years old, look at getting that paid back first would be a better idea so that this can be removed from your financial history quicker.

Make More than the Minimum Payment

Loans can easily overtake your life but they are often prolonged because most people pay only the bare minimum. That is good in one instance and bad in another. It’s great you’re making a payment to the loan but paying only a small amount will ensure the loan stays with you for decades. In the long-term, you’re going to pay more back in interest and sooner or later, things will get on top of you. However, if you can, make a higher payment, more than just the minimum amount. It doesn’t have to be hundreds more, ten or twenty dollars extra is good; it all goes towards repaying the loans back. Most think student loan refinance is the best solution but in this cases, not always. Click here !

Try To Negotiate Payment Amounts and Interest

This might sound a lot like student loan consolidation but it’s not quite at that stage yet. Negotiating the payment amounts and looking to lower or keep the current interest rate is an important factor to look into and it’ll help repay the loan back too. This is certainly something you must think about so that you can get the loan paid quickly. Negotiation is a wise tool but it might not always be effective; however, there is no harm in trying nonetheless.

Student Loan Consolidation Should Be the Last Resort

Refinance is truly the very last, desperate resort for anyone with a student loan. The reason why is simply because any loan you take out is marked down on your credit history and if you later refinance or consolidate these loans, it goes against you. This could potentially affect you getting another loan in the future, even if the loans were taken out twenty years ago. You have to remember lenders look into your financial and borrowing history and seeing several student loans on your history, and consolidation or refinance, it’s going to potentially cause you to be refused a loan. It’s something to think about but of course, if you have no other option then refinancing is something to think about.

Don’t Get Bogged Down With Old Loans

When you have a student loan, you can often put repaying this to the back of your mind but is that really the smartest idea? Well, no not really. The loans are going to follow you no matter where you go and it’s going to affect your life as well. That is why it’s wise to look into dealing with these loans quickly and easily. Student loan consolidation might not always be necessary, it’s a last resort but don’t be afraid to explore if you’re struggling with current repayments.

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Consolidate or Refinance: Which One to Choose?

You may realize that you need to take care of your student loan payments, yet knowing precise what to do is the issue. There are two fundamental alternatives with regards to private student loans (federal loans won’t be secured in this article since you need to consider a couple of new terms when working to lower government loan payments).

The choices that you’ll discover incorporate renegotiating or union. The two sound the same, yet they are diverse.

Knowing the distinction between these two alternatives will help you choose which choice is a good fit for you.

Student loan refinance

Renegotiating implies that you will take out another loan to pay off the current loan(s). Once you’ve refinanced, the two loans will be consolidated into one loan with a lower regularly scheduled payment. Ordinarily, renegotiating permits you to pick better financing costs and repayment terms, however, as a rule, you do need great credit (and a decent reputation with regards to making regularly scheduled payments) to refinance.

You can student loan refinance both federal and private loans, yet renegotiating a federal loan implies that you will surrender individual rights that you most likely would prefer not to forfeit.

Student loan consolidation

When you solidify a loan, you don’t take out another loan. Rather, you join different loans into a single loan. The advantage of solidification is that it’s simpler to make one single payment as opposed to making separate payments for numerous loans. While a debt may be brought down on the off chance that you merge a loan, there’s a decent risk that the financing cost will be much higher – this is something that you’ll need to be exceptionally watchful about.

It doesn’t bode well to combine a loan for sheer straightforwardness and pay higher financing costs. If combination entices you, take a gander at different choices before settling on this decision. Renegotiating may be a preferred course to go if you can refinance your student loans.

What the Future Holds?

Honestly, the future doesn’t look that encouraging. Each academic year, the interest rate on student loans is skyrocketing, causing more worries for borrowers and those who are contemplating taking out education loans.

In July of 2016, student loans interest rates for 2015-2016 have increased yet again. It’s an increase of 20% compared to the previous academic year.

The changes in the interest rates are listed below:

  • New interest rates for direct subsidized and unsubsidized Stafford loans will be 4.66%.
  • Direct unsubsidized Stafford loans will have interest rates of 6.21%.
  • Interest rates for Direct Graduate PLUS loans will be 7.21%.
  • The direct Graduate PLUS Loans and Direct Parent PLUS loans interest rates have gone up to 7.21%.

These changes in the interest rates might leave an impact on the number of enrollments as many would hesitate considering the high education cost. To meet the costs, they will invariably take out student loans, which is likely to create an additional financial burden for them.

The Difficulty

The issue with bringing down most month to month student loan payments is that you truly need great credit to get an incredible rate. It’s hazardous (and typically is), following most graduates with large student loans a) might not have a substantial employment yet b) may have missed a payment or defaulted as of now.

The difficulty was making your loan payments; it’s an excellent opportunity to get money related help. In spite of the fact that bankruptcy is a final resort, a bankruptcy lawyer might have the capacity to help you choose on the off chance that it is the right choice for you. All same hope the above tips on student loan refinance and consolidation will work for you.

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Don’t Lose Money by Trying to Get Money

Unfortunately, scholarships have become so desired that there are scams out there. It’s inevitable to come across a scam, so here are warning signs that a scholarship may be a hoax. Check this post for more common misconceptions about scholarships.

First and foremost, never give cash up front. This is one of the most used scams. They want money to “process” the application. Scholarships don’t work that way. When a scholarship is legitimate, you won’t need to spend money to get money. If an offer comes across saying that they need a hefty processing or application fee, this is most likely a scam. Very, very rarely are there ever fees attached to getting a scholarship. Scholarships are meant to be charitable money to put towards your tuition and they shouldn’t ask to take away more money from you. In addition, don’t immediately dismiss a scholarship just because it seems fake. There are tons of weird scholarships that are actually real!

A second popular scam is having a webpage say false claims. One example is, “You will get this scholarship or your money back.” Usually they want a fee and will claim that you’ll get it back, but it’s a scam. You won’t see the money again. Another claim is that “You can’t get this scholarship anywhere else.” If it’s not on popular, free college scholarship sites, it’s probably not real. Be wary about applying. Here is a link to my recommended scholarship search site. If a scholarship is real, usually you can find it in their database. Granted, this is not always the case, but 99 times out of 100, you can.

This scam is an odd concept, but believable to the untrained eye. Many scams will pop up with a message such as, “Congrats! You won a 20,000 dollar scholarship to college!” This sounds like something to be excited about, but it’s not. If you didn’t submit an application for a scholarship you couldn’t have won one. You don’t win scholarships by going to websites, you need to enter your information and apply first. If it’s saying that you’ve won before you even apply, it’s a scam. Nothing comes without effort. Getting $20,000 for simply clicking an ad constitutes as doing nothing.

Once you get a scholarship, you are often eager to receive the funds. Some scams depend on this. If you submit a scholarship and they reply that they need your financial information, it’s not a real scholarship. Follow the general rule of thumb and note that a scholarship won’t need your credit card or bank account number. They can write a check to you or your school. Do not give out your financial information in any circumstances. It may even be presented in an official, believable way, but it is still a scam. This is putting your monetary safety at risk as it can easily wipe out your bank account.

The last scam is when scholarships will claim that you “pre-qualify”. Scholarships are not like credit cards – you should not pre-qualify. Legitimate scholarships have so many people applying that they aren’t going to extend offers for more people to apply. If the scholarship is desired, they expect you to do your research. If a scholarship reaches out to you by saying that you qualify for their scholarship based on income, merit, race, etc., it is a scam.

To find out that what was a potential scholarship is a scam can be disappointing, but there are thousands of real scholarships out there. Being sure to apply to the right ones and not the scams will save you money and ensure your safety. Try scholarship searching sites if you’re stuck. Doing this, make sure the site is reputable and realistic. There are scholarships for you out there, but they’re not as easy to get as 1, 2, 3.

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