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September 22nd, 2009:

Tips for Deciding When to Consolidate Student Debt

After graduation, it comes the time when you have to start paying off your student debt. But even if you are lucky enough to find a job right away, your salary might not let you pay for all your expenses plus the loans installments. This is when student consolidation loans come in handy.

When consolidating student debt, the loans principal will not be modified. Nevertheless, you will be able to save thousands of dollars on interests and reduce your monthly payments by extending the loans length. Moreover, consolidating at a fixed interest rate will let you keep the same monthly installment amount through the whole life of the consolidation loan.

That being said, consolidating student debt is not always worth the trouble. Only if you can obtain a substantial reduction on your debt or if you can make your monthly payments more affordable you can say that consolidating student loans is appealing enough. In order to determine this you may want to follow the following tips: Consolidating During The Grace Period

Be especially careful not to consolidate during the initial grace period unless the consolidation loan includes another grace period or you can do without it, because otherwise you will have to start paying your debt right away. Grace periods usually last between 4 months and a year. During this period, the borrower is not required to start paying off the loan. The main reason for this benefit is that the graduated student might need such a time to find a job and get used to a new lifestyle. Interest Rates

If you can get a lower interest rate than the average of all your outstanding loans, that would be great. However, you will probably get an interest rate just a bit higher than the average interest rate of all your student loans. The reason why you would want to consider consolidating even with a higher interest rate is that the length of your loan will be extended and the loan installments reduced. Besides, the interest rate will be locked so if market conditions worsen you would still be paying the same amount, as opposed to federal student loans which rates fluctuate with the market. Contact Government Agency For Cancellation

Prior to consolidating your federal student loans or other government loan, you might want to contact the government agency that issued the loan. It is possible to fully cancel the loan without reimbursing the money if certain requirements are met. Since you have nothing to loose, before searching for a lender to consolidate your student debt, make sure you can not get the government to condone the whole or part of the debt. After consolidating, you will not be able to apply for this kind of government forgiveness. Set Aside Special Loan Programs

There are certain loans that you might want to maintain with its original terms. There are loans where the government pays for the interest and you only pay for the principal, others where the loan can be renewed upon cancellation or even before. If you consolidate this kind of loans with the rest of them you will loose this special attributes. So make sure you will not have use for them before rushing in. There is always time for consolidating, so you might as well make a conscious decision on this matter.

Devora Witts is a certified loan consultant with several years of experience in the credit area who instructs people regarding credit recovery and approval for personal loans, home loans, consolidation loans, car loans, student loans, unsecured loans and many other types of loans. If you want to understand <a href="http://www.badcreditloanservices.com/debt-consolidation.html” rel=”nofollow”>Debt Consolidation and <a href="http://www.badcreditloanservices.com/government-grant.html” rel=”nofollow”>Government Grants thoroughly you can visit her site http://www.badcreditloanservices.com
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Student Debt Consolidation or Discharge / Forgiveness?

Well, though it is possible, there are many misconceptions regarding this subject and what many people don’t understand is that you are either entitled to a discharge or not. Let’s make things a little clearer.

It is important to distinguish discharge from forgiveness or cancellation. These are two different concepts that imply diverse things. And though the effects of both may be similar, the circumstances or conditions under which you can qualify for loan discharge or loan forgiveness are completely different and are attributable to diverse causes.

As regards to consolidation, it is a completely different concept with distinctive effects and causes. Loan Forgiveness Explained

Loan Forgiveness is the cancellation of the debt when the lender considers that the debt has been satisfied by other means than regular repayment of the loan. Federal student loans can be forgiven under certain circumstances either partially or in full. There are selected criteria that the lender may decide that makes you eligible for loan forgiveness. In order to find out you’ll need to consult with the lender. When it comes to federal student loans there are some particularities.

Federal student loans can be forgiven among other reasons if: you carry out volunteer work in predetermined areas or fields (Since the work you do is not paid, at least, the government forgives your debt). If you carry out military services you can also be eligible for partial or full forgiveness of your student debt. And Finally, you can also obtain forgiveness of your loans if you practice medicine, law enforcement or teach in certain areas or for selected underprivileged groups. Loan Discharge Explained

Loan discharge is the annulment of the loan contract with the cancellation of the debt when you are legally (by law or contract) entitled to it. There are many reasons why you can have the right to claim the loan discharge but probably you don’t wish for these conditions to happen since the law grants this right as means to repairing a damage that has been done to the borrower one way or another.

In order to show some light over this obscure concept we will give some examples of the situations that grant you this right: death or disability of the applicant, liability of the school due to fraud or certain lack of fulfillment of the contract, a forged signature or other counterfeit, bankruptcy (when the repayment of the loan causes hardship as declared by the court). An Alternative: Student Debt Consolidation

Chances are that you won’t qualify for either discharge or forgiveness of your student debt. If you still want to bring some ease to your financial life, the smartest thing to do is to consolidate your student debt. By consolidating you can obtain up to 30 years to repay your debt and consequently obtain significantly lower monthly payments that you won’t have problems affording. Moreover, by consolidating your federal student loans you can lock the interest rate thus avoiding rate variations that would otherwise cost you thousands of dollars.

Joycelyn Crawford is the author of the article you’ve just read. If you want to keep on reading more tips written by her you can visit this website
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Know How and When to Cancel a Credit Card

There comes a time in the life of every credit card owner when you decide it’s time to cancel at least one of your credit cards.  Maybe you just don’t ever use the card anymore and figure it’s doing you no good just sitting in your wallet. Perhaps you just don’t like your current interest rate or the fact that you don’t get anything back from the card. No matter the reason, there are some things you need to keep in mind before you take the step towards cancellation.What’s Your Balance?If you have any balance on your card, you need to pay that off. Anything other than a zero balance when you try to close a card looks to the credit card company like you are trying to get away without paying your debt. This can end up costing you with a ding on your credit rating.Need a Loan?If you think you may be taking out a large loan in the next year or two (say for a car or house) you may want to think twice before canceling your credit card. When banks look at your credit history for loans, they like to see that you have had a long, positive relationship with a credit card company or two. It makes you seem more reliable as a customer.Do You Have Too Much Credit?Did you know that there is a careful balance that has to be kept when it comes to the number of credit cards that you have? Your credit rating relies on your total credit availability. If you have a lot of open cards that means you are a riskier proposition as you could choose to start using them all and get into deep credit debt.How to Cancel a Credit CardEventually, you will have to make the decision to cancel at least one of your credit cards. Once you do, you need to make sure you do it right.Pick up the PhoneThe first thing you should do is pick up the phone and call the credit card company. You will need to speak to a customer service agent and ask them to cancel the card for you.Pick up a PenA call is not enough. You need to back it up with a letter to the credit card company explaining that you do, indeed, want to cancel your card and mention that you called to do so (with the date of that call).Pick up your MailWatch the mail for confirmation from the credit card company that they have, in fact, cancelled the card.Pick up your Computer MouseFinally, you want to make sure the credit reporting agencies know you have cancelled the card. Keep checking back with them to see that they have shown the card closed. This can take a few months, so be patient. But if after three or four months there has been no change, you need to call the credit agencies and let them know your card accounts have been closed.

Stephen Sikes is the owner of the credit card comparison site www.CreditCardWave.com
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