A Look at Consolidating College Loans

Student loans provide people without the means to pay up immediate payment for an education a means to finance college costs and linked expenses. It's not exactly the most preferred path to pay up for college, but in numerous examples it is essential. After all, who holds $15,000 to pay out for one year of college study? So, once your educational activity is through, what may you do with your student loans?

College loan consolidation is a favorite way to preserve cash on pupil loans. If you take out a student loan to help pay for your education, chances are you took out more than one loan. A college loan integration takes numerous school loans and unites them into one. There are a couple of benefits to doing this. Foremost, rather than paying for separate loans, you simply need to pay a single loan once per month. Secondly, the college loan consolidation payment is oftentimes lower than the amount of the separate loans.

Why would an individual take a college loan consolidation? Educational costs may be exceedingly high. The total balances of one's training loans might go past the price of luxury autos and even houses. Graduating from college does not always translate to finding a high-paying job from the kickoff. For many graduates in the workforce, student loan payments eat up a big chunk of income, with not much leftover for day to day expenses.

A college loan consolidation might offer up relief in the form of lower payments. A college loan integration could likewise offer up relief in the shape of lower interest rates. Rates of interest may alter widely among other student loans. Chances are, at least one of your loans carries a stiffer rate than what the college loan consolidation offers up.

The bottom line is you can save money from a gentler monthly payment, lower rate of interest, less total of payments, or even a combination of the three. Whenever you consolidate into a lower rate of interest, you shrink the interest you ante up over the lifetime of the loan. Additionally, consolidating your loans may spare you a bit of time. handling several student loans can become involved. You need to keep track of which payments go to which lender. A simple error might cause you to underpay one loan while overpaying another. A consolidation does away with this by allowing you to keep track of merely one loan.

If you want to truly increase the convenience of a consolidation, you can have the monthly payment deducted directly from your bank account. As long as you know not to use that payment amount of money for some other expenses, you need not vex about being late or underpaying your loan. As an extra incentive, many consolidation loan lenders provide extra rate decreases for borrowers who take advantage of an automatic payment feature. Whenever this bonus is proposed, there really are zero reasons not to use an automatic payment method.

by James Hunaban

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College Loan Corporation Wins Technology Award

College Loan Corporation (CLC), the nation’s seventh largest student loan provider, today announced that it had recently won a technology award for its innovative use of a software solution. CLC was recently awarded the 2006 OnBase® RealSolutions Award for its outstanding use of the document management system in student loan processing.

CLC chose Hyland Software’s OnBase enterprise content management (ECM) solution to automate the scanning and filing of loan applications into readable, electronic documents. CLC won the award because of its original use of the product for streamlining loan process workflow by electronically sorting and processing borrower files.

“We are pleased to be chosen as the winner of this technology award,” said David Hawn, chief operating officer of CLC. “CLC is proud of the personal service that we provide to families through our 24/7 hotline and our experienced loan consultants. Now, we can be equally proud of our innovative use of technology, which we use to quickly get funds into the hands of families and schools.”

CLC is committed to using technology to speed up paperwork – not to replace the personal touch. CLC offers first-class service to students and families 24 hours a day, 7 days a week through our borrower hotline. With their first call, families are assigned a loan consultant who provides them with the best advice for their unique situation while saving them the hassle of re-explaining issues. Loan consultants can develop a relationship with a family that spans from application through repayment.

“Families are looking for help from a student loan company that can provide personalized service throughout the process while using technology to cut through paperwork,” added Hawn. “CLC’s unique ability to provide this has made us the seventh largest student lender in the nation.”

The OnBase RealSolutions Award complements CLC’s recent wins in the “Best Customer Service” category at the 2006 American Business Awards, as well as the 2006 Torch Award for Marketplace Ethics from the Better Business Bureau of San Diego and Imperial Counties.

About Hyland Software Inc.
Established in 1991, Hyland Software Inc. is the developer of OnBase, a rapidly deployable suite of enterprise content management (ECM) software applications. OnBase® is a modular suite of ECM applications that includes document imaging, workflow, electronic document management, COLD/ERM and records management. OnBase allows organizations to manage all digital content, including scanned paper documents, e-mails, faxes, print streams, application files, e-forms, Web content and multimedia files. OnBase is used by businesses and government agencies around the world to reduce the time and cost of performing important business functions and address the need for regulatory compliance through the management, control and sharing of digital content with employees, business partners, customers and other constituencies. For more information about OnBase, please contact an OnBase Authorized Solution Provider or visit www.onbase.com.

About College Loan Corporation
College Loan Corporation (CLC), headquartered in San Diego, is the nation’s seventh largest student loan provider, managing more than $9 billion in student loan assets. By offering innovative loan products and industry-leading customer service, the Company has helped make higher education possible for more than 700,000 students and families. More than 900 colleges and universities have designated College Loan Corporation as a preferred lender.

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College Foundation Helps Graduates Weigh Loan Consolidation Options

With graduation from college, education loan borrowers frequently receive a barrage of offers and pressure to consolidate loans into one easy monthly payment.

For the past several years, large increases in variable interest rates have created a frenzy to consolidate. This year, however, interest rates on variable education loans are changing very little. Most Stafford and PLUS Loans with variable rates will see an increase of less than one-tenth of one percent.

Even so, it is still a good time to consider your loan repayment options. College Foundation of North Carolina (CFNC) provides information about a variety of ways to handle your payments. A consolidation loan might be a good choice for you, but, since federal regulations, in most cases, specify that you can only consolidate your student loans once, CFNC wants to be sure you don't make a costly mistake.

Some questions you need to consider before consolidating include:
What is the current interest rate on my loans? Can I handle my loan payments comfortably without consolidation?

Is it worth extending my payments further into the future and paying more interest, even if my monthly payment is lower?

How long has the company offering to consolidate my loan been in business? Does it plan to keep my loan or immediately sell it to another company I have never heard of?

Am I being pressured by a company to consolidate without having the chance to compare benefits and repayment incentives from other lenders?

In previous years, there were rules preventing borrowers from consolidating with companies other than their current lender. You are now free to compare offers and choose the option that's best for you.

Just don't wait until the last minute to apply or ask for help in making your consolidation decision. The last few years, on the final days before July 1 interest rate increases, College Foundation has received thousands of phone calls and faxes, and some late callers had trouble getting through in time.

If you need help comparing benefits and offers, College Foundation of North Carolina has call center representatives who are ready to assist you at the toll-free number 866-866-CFNC. Helpful information and online applications are easily available at CFNC.org. If you decide a consolidation loan is a good choice for you, going to CFNC to borrow from College Foundation, Inc. can save you up to 2 1/4% on your interest rate.
About College Foundation of North Carolina
College Foundation of North Carolina (CFNC), a free service of the State of North Carolina provided by Pathways, College Foundation, Inc. and the State Education Assistance Authority, helps students plan, apply and pay for college.

The State Education Assistance Authority is the State agency that promotes access to higher education by administering financial aid and savings programs, informing students and families about paying for college, teaching educators about financial aid administration, and advocating for resources to support students.

Pathways is a state-based initiative including North Carolina's Department of Public Instruction, the University of North Carolina System, the North Carolina Community Colleges, and the North Carolina Independent Colleges and Universities working together to increase access to college for all North Carolinians.

College Foundation, Inc., a nonprofit corporation serving North Carolina students and families since 1955, administers a portfolio of more than $2.8 billion, including low-interest education loans, the state's college grant programs and the tax-free "529" college savings program on behalf of the State Education Assistance Authority.

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Community College Disadvantages

While there are many distinct advantages that can be associated with attending a community college there are a few disadvantages that I would be remiss in not mentioning. We all like to look at the positive side of things and the good in my opinion of community colleges, at least as a springboard for university learning far outweigh the bad. However, if you are considering community college as an option whether for your associate's degree alone or have plans to move along to the university level upon completion you should see the big picture and not just the sunshine and flowers.

The first thing you should be aware of, and this applies primarily to those students with plans to transfer, is that you should always consult the college you intend to attend next in order to make sure that the courses you are taking on the community college level are compatible with the core requirements for the university. In many cases they are similar enough to be considered compatible but there are exceptions and it is better to find this out sooner rather than later. If you plan to attend a University that is located near the community college you are attending you should check and see if they have some sort of articulation agreement that will allow associate's degree graduates to transfer seamlessly.

Many states are stepping in and passing laws that require colleges in their specific states to accept community college credits as transfer credits in an effort to keep qualified workers in the state. Some universities are even offering distance learning programs to associates degree graduates in order to allow access to students who live a greater distance from campus to have access to educational opportunities that would have been denied to them in the past. Of course if you live in one of these states, a former disadvantage may now work in your favor.

Many community colleges do not offer housing opportunities and most of those that do are still largely commuter campuses rather than residence campuses. Rather than spending funds on housing these colleges tend to reserve their spending to assist in academic pursuits. Community colleges in rural areas are much more likely than those in larger cities to offer housing on campus. The lack of on-campus housing makes participation in sports and other activities a little more difficult than colleges that are largely residential in nature.

If you decide to make a community college your last stop when it comes to your personal educational experience you will be denying yourself a great deal of earning potential over the course of your lifetime. For this reason you should seriously consider the benefits that transferring to a university will present for your educational goals.

My largest complaint when it comes to community colleges when compared to larger universities was the fact that there are such limited opportunities to take specific classes than when compared to those classes on a university level. You will find that you must remain within your sequence of courses on the community college level or you risk needing an extra semester or year in order to complete the requirements for your associate's degree. Universities tend to offer greater flexibility, especially in lower level courses that are required by all in order to graduate.

My other major complaint when it comes to community college is the fact that they often have much smaller libraries than universities. This seriously limits the ability that students have to do extensive research with the exception of rare cases. Universities simply have deeper pockets than the average community college. For this reason they will have bigger libraries and far more bells and whistles than the average community college. Hopefully we'll see this change over time as well. Despite the disadvantages that can be associated with community college educations, I feel that they are very much outweighed by the benefits that the community college learning environment offers.

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A Guide to Private Student Loan Refinancing

There are two different types of student loans; federal and private. Federal loans, like the Stafford Loan and the Perkins Loan, are backed by the federal government. Interest rates on federal student loans are determined by a weighted average and capped at 8.25%. Private student loan consolidation rates on the other hand, are determined by your credit score and can be significantly higher. If you've got both federal and private student loans and are looking to consolidate, there are few things that you'll need to keep in mind throughout the process.

Can private student loans be consolidated with federal student loans?
No. By combining federal and private student loans, you would lose out on many of the benefits of your federal loans including the ability to place your loan into a deferment or forbearance status, as well as the low federal interest rates.

What interest rate can I expect when I consolidate private student loans?
Private student loan interest rates aren’t regulated like those for federal student loan consolidation. Instead, private student loan interest rates are based on an index plus a percentage determined by your credit score. It may be possible to obtain a lower rate on a private consolidation loan with a cosigner or guarantor on the loan.

What other options are available for consolidating private student loans?
There are far fewer options for consolidating private student loans than with federal student loan consolidation. Many borrowers choose to consolidate their private student loans through a home equity refinance. For borrowers with variable interest rate private student loans, consolidation through a home equity loan can offer a fixed percentage rate and extended repayment terms.

Refinance federal student loans first
Because private student loans don’t have the same consolidation benefits, most experts strongly recommend refinancing federal student loans before attempting to consolidate private loans. Since most borrowers use federal student loans to fund the majority of their education and obtain private loans only to fill in the gaps, refinancing federal loans now may give you the relief you need.

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