Student Loan Consolidation and Settlement Simplified

By [http://ezinearticles.com/?expert=Arman_Vakili]Arman Vakili 

Student loan consolidation and settlement is one of the hottest topics in the financial markets today. The main reason for this is that the national student loan debt (just in the Unites States) is over $1 trillion.

What's scarier is that the grand majority of the people who took out these loans didn't get a job related to their original field of study. And if they did get a job, they aren't making enough to pay their loans off. 

And probably the scariest part of the loan epidemic is that it's the only type of debt that cannot be "removed" through even bankruptcy. 

Which brings us to the question, "What can you do with them?"

Well... it all depends on the type of loan that you took out. There are private loans and then there are federal loans.

Private student loans are loans that were taken out from a financial institution and are usually the toughest to settle, if possible at all. You would normally have to go through a different financial institution - like a bank or a credit union - to see if you can take out a new loan or line of credit with a lower interest rate and transfer the balance. 

If possible, you should definitely consider using lines of credit versus actual loans into which to transfer the balance of your student loans. The main reason for this is that with loans you have to make payments the moment that the transfer is made. Whereas with lines of credit, you only make payments if you actually use the balance in the line of credit. 

And the interest rates with lines of credit are typically lower than loans. In some cases, it might make sense for you to use a home equity line of credit. It is extremely rare for this option to be the ideal choice so make sure you've exhausted all other options before choosing this one as your last resort. 

Federal student loans are a bit more black and white. Meaning that you don't really have too many options to choose from when trying to consolidate federal loans. 

In order to consolidate federal student loans, you would have to negotiate directly with the government. Luckily, the government recently announced a program where qualified candidates can consolidate their loans to lower interest rates and lower payments. 

In some cases, you can even qualify for $0 per month payments.

This is all case by case and you would have to speak with a qualified attorney to see what type of program and payment plan you qualify for. And even though they are rare, you can find competent and capable law groups that can negotiate on your behalf and consolidate your federal student loans.  

Visit our site for more free resources on [http://flawlessfinancial.com/blog/2015/04/08/student-loan-consolidation/]how to consolidate student loans, as well as our recommendation for a powerful law firm in California who specializes in student loan consolidations.

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Student Loan Repayment Tips - 8 Tips to Keep Your Loan Under Control

By [http://ezinearticles.com/?expert=Gee_Gee_Gladden]Gee Gee Gladden

The very best way to manage debt is to be debt-free, yet that is easier said than done in today's economy. However, when it comes to paying for your college education, acquiring debt or student loans to afford the tuition cannot be avoided for many students.

In planning for the successful repayment of your student loan many things must be taken into consideration. To get ahead of the game you should plan to repay the loan before you sign the first promissory note. In a perfect world this might be the case, quite the contrary most student do not consider repayment until after they have graduated from college and land their first job.

Here are some suggested tips to help you make plans to deal with your student loan effectively to ensure repayment success.

• Tip #1: You Do the Leg Work

All loans are not equally created. Some loans offer repayment incentives while you are still attending college; this bonus in some cases can be extended even after you have graduated. On the other hand, there are loans that provide no such stipend and the loans are due shortly after you have graduated college. For example, the Federal Family Education Loan Program (FFELP) loan charges a 3% loan origination fee; one stimulus is the proposal to pay this fee for students. The student in-turn has more money to off-set the cost for books, school supplies and living expenses.

An example of the incentive after graduation would be the fact that you could qualify for reduced interest rates. Also, should a student want to repay the loan through an automatic withdrawal system, like payroll deduction, for example, the probability of receiving this incentive is even greater? As you can see, there are notable differences in each student loan; that is why it is necessary to ensure that you have a thorough understanding of what each loan offer; and choose the one that provides the best incentives.

• Tip #2: Read Your Mail

Typically, student borrowers get tons of information concerning the student loan. The student receives mail, normally, immediately prior to, throughout and following graduation from college. Consequently, it is crucial that you read through the entire stack of mail carefully. Therefore, if you have concerns, or there is information you do not understand; by knowing what is going on now you can get the problem resolved right away. Remember, it is necessary to ask if things are not clear, don't ignore the mail or you might miss out on a critical deadline or important information you need to act on concerning the loans.

• Tip #3: Organize that Mountain of Paperwork

Save all of your student loan paperwork and correspondences, as soon as you get it in the mail in the mail. That way, you are going to know exactly what you agreed to, what is expected from you at loan repayment, and also to remind you how much you have borrowed, which is extremely important. It is interesting how signing the promissory note for your loan is so exciting, repaying the loan seems far away, but only for a while. Four years of college pass by quicker than you think. Before you know it, you are graduating, and the student loan repayment is glaring you in the face.

Organization and having the ability to put your fingertips on the loan paperwork will assist in alleviating a lot of the panic. To make things easy for you, begin by establishing a good, easy to use, record-keeping system in which you are able to keep your student loan paperwork and correspondence. The bookstores and libraries have books and software products on personal finance and organization that will help you get going. No matter what filing system you choose, whether document folders, binders, portfolios, or envelopes, create one file for each loan or account you have, and keep your items categorized appropriately. Additionally, while organizing your record-keeping system, make sure that it is safe. The record-keeping system should be kept free from thieves or fire. A number of professionals also recommend that you need to keep your student loan documents and correspondences until they are all totally paid off. This is what you need to keep a record of.

*Essential paperwork like your college student loan applications, promissory notes, disbursement and disclosure statements, and also loan transfer notices. * Copies of all correspondences concerning your student loan company and/or servicing company, such as your school's financial aid office. * Contact and phone number of the loan provider.

• Tip #4: Be Present at all Required Entrance and Exit Sessions

When you take out a student loan, you will have to complete the student loan counseling sessions. Some schools give this on-line and the sessions will not require a considerable amount of your time. They will give you a significant amount of information concerning your rights as well as your obligations as a student borrower.

• Tip #5: Budget Finances Like a Pro

The adage when you live to impress when you are in school, you might live like a pauper when you have completed your degree. Quite simply, it is essential that you learn the best way to manage your hard earned money when you are going to school. Frugality can help you reduce the amount of the loan you apply for; as well as reduce the total amount you are going to be responsible for paying back. Here are a few sensible techniques worth taking into consideration:

* Prepare realistic budgets while you are going to school and even after you graduate. This will probably enable you to borrow only what you need, providing you an excellent opportunity to pay back the loans. * Learn how to live as inexpensively as possible. Bear in mind you are only a college student. You can enjoy a much more trouble-free life if you graduate with little to no financial debt. Many excellent tips on how to be cash conscious include finding a roommate, renting a video rather than going to the theater, and taking your lunch from home rather than going out to restaurants.

Thriftiness is the name of the game, so be as thrifty as you possibly can. * For virtually any credit card debts you receive, try to pay off the total amount due. * Set up a financial budget for yourself and stick to it. As long as you are in college, it will be beneficial to see how you can avoid the desire of using credit cards or your student loan money to purchase items that are not contained in your spending budget. Never simply purchase unneeded items. * If at all possible, check out work-study or other part-time job. Finding a part-time job will give you the chance to gain useful specialized experience, as well as providing additional income to cover expenses.

• Tip #6: Retain at least Half-Time Enrollment

If you are thinking about half-time enrollment, it is essential to ensure that you are eligible for an in-school deferment. The part-time enrollment usually takes six credit hours. Check with you educational institution requirements concerning the prerequisites for half-time standing.

• Tip #7: Make the most of Tax Cost savings

A number of college students who take out student education loans qualify for tax breaks. To determine your status, seek advice from your tax consultant. The breaks are now determined by your qualified college tuition repayments, and in addition, they will help decrease how much Federal tax you have to pay. If you are paying interest on a student loan, it is possible to receive a deduction on your individual Federal tax return for all interest payments. When, you get the advantage of the tax credit as well as the deductions, use the extra tax reimbursement to pay down your student loan, or to take care of the educational expenses.

• Tip # 8: Show Me the Money

College graduations is now behind you and your new careers looms just ahead, but guess what; it is now time to repay those student loans. Some loans come due soon after college graduation while other loans allow a bit of time before repayment is due. The bottom line is the loan will have to be paid. Here are some recommendations when you enter the repayment period:

* Submit the loan payment as soon as it is due each month for the full payment amount or even more. This should be done no matter whether you receive a monthly bill or not. *Understand the pay off alternatives offered by your student loan lenders. One option allow you to decrease the loan by making larger monthly payments, and other option allow you reduce your initial monthly bills by making it easier to repay the loan early in your career.

*Contact your lender and inform them immediately of any change in your name or address; if you have questions about your college bill; making payments on time is a problem; loan deferment or forbearance might be needed to help you through a financial crisis. *Make sure you clearly comprehend all mail you receive from your student loan lender and respond immediately when notified. For Further Information concerning your student loans, always remember that the financial-aid office at your school should be your first point of contact. Additionally, there are a number of publications from the Federal and state governments, lenders and college admissions office, libraries and your local bookstore.

Here's to your success!

For me to admit that I am still paying off student loans this late in my life is a source of embarrassment. I refuse to reveal my age but believe me I am too old to still be paying off student loans. Oh, as I recall, President Obama and first lady Mitchell Obama paid off their student loans only a few years ago, so maybe I should not feel too bad. With that said, student loans are, and will continue to be an albatross around the necks of thousands of students and the numbers are growing each and every year. What can be done to waylay this dilemma? Unless you are born into a wealthy family, have parents who set up an annuity to cover the cost of your college education, brilliant enough to win a full scholarship, then [http://www.squidoo.com/private-student-loan-consolidation]student loans will be the way most students will have to go to complete his/her college education.

The loan will be even larger if the students choose to pursue a graduate degree or higher, thus adding to the cost that will have to be repaid. However, because you have to take out student loans to support your education, there is no reason why the loans should not be managed properly! So, student loans yes, inappropriate managing the loans is a definite no, no. Be sure to be frugal and find out the very best way to manage your student loans while still in college. There are ways to ward against the inevitable debt, make the best use of it.

Article Source: [http://EzineArticles.com/?Student-Loan-Repayment-Tips---8-Tips-to-Keep-Your-Loan-Under-Control&id=3871633] Student Loan Repayment Tips - 8 Tips to Keep Your Loan Under Control

Paying for College - Financial Planning Strategies

By [http://ezinearticles.com/?expert=Peter_D._Rudolph]Peter D. Rudolph

• Before College - Planning 

Generally, consider gifting your income generating assets to your child. The income earned by these assets would be subject to a lower tax rate than yours. However, with the enactment of kiddie tax, the unearned income of your child over $2,100 is taxed in the parent's marginal bracket.

Investing in bonds may be one way to plan for your child's future. There are several types of bond investments available in the market today. Tax-exempt bonds or tax-exempt bond mutual funds pay interest that is tax-free.

Another type of bond to consider is Series EE bonds. This type of bond has two interesting characteristics. Interest is only taxed when the bond is exchanged for cash. Additionally, interest earned can be exempt from tax if the bond is issued in the parent's name and the proceeds are used for qualified college expenses such as tuition, fees, etc. The exemption from tax for Series EE bonds is decreased when the parent's income exceeds certain levels.

An additional option is to invest in a 529 Plan (Qualified Tuition Program). Parents have two options with a 529 Plan. They can prepay their child's tuition by buying tuition credits at today's cost for future use or they can contribute to an investment account that is specifically set up for higher education. The contributions are not tax-deductible however they qualify for the annual gift tax exclusion of $14,000. In case your contribution is higher than the $14,000, parents may elect to treat the contribution as it was made over 5 years. Accumulated income grows tax-free until it is distributed from the account. Distribution proceeds used for qualified college expenses are exempt from tax, but if the distribution proceeds are used for other purposes, the withdrawal becomes taxable plus a 10% tax penalty on the amount of the withdrawal.

Lastly, Coverdell education savings accounts (Coverdell ESAs) may be the option you are looking for. Set up this account and have the ability to contribute up to $2,000 a year for your child under age 18 (age limitation is different children with disabilities). The contribution is not tax-deductible; the income earned by the account is not taxed and will be tax-free if used for qualified college expenses. If your child decides not to pursue a college education, the child has to claim the money by age 30, the earnings are taxable, and the earnings are subject to a federal tax penalty of 10%. The unused funds of an account owner who is over 30 can be transferred tax-free to a sibling's Coverdell ESA account who is under the age of 30.

• While in College - Paying

Thinking, "I am too late. My child is about to enroll in college and there are no funds set aside?" There are also ways to get tax savings from paying college expenses.

American Opportunity tax credit is a $2,500 tax credit per child for the first 4 years of their education. Qualified expenses include tuition, fees and books. 40% or $1,000 of this credit may be refundable.

For students that go on for secondary and graduate degrees the lifetime learning credit maybe available. The amount of this credit is limited to $2,000 per family and is calculated at the rate of 20% of expenses up to $10,000 in qualifying expenses.

These tax credits are designed to progressively decrease or even become wiped out when income exceeds certain levels. This may actually result in the credit not being available.

Scholarships should be the first choice to pay for a student's education. This will reduce education costs since they are generally tax-free. The scholarship is taxable when it is considered compensation.

When employers pay an employee's child's tuition, the employee is usually taxed on the value of the payments. There is an exception to this rule, when focus of the education is different from the work of the employer, for tax purposes it is a scholarship and tax-free.

Gifting is an option before and after the student starts college. For example the student's grandparents want to gift money to pay for their grandchild's college costs. A single grandparent may give the student up to $14,000 without paying gift tax. Married grandparents may give the student up to $28,000 without paying gift tax. It must be noted that tuition directly paid to the educational institution falls under an unlimited gift tax exclusion.

Some parents consider having the student get a loan instead. As a general rule, interest from student loan is not deductible, however up to $2,500 in interest is deductible when the loan proceeds pay for higher education.

Parents and students can also opt to withdraw money from their retirement plans. Recipients of retirement plan funds are exempted from 10% penalty for premature distribution when the withdrawals pay for college costs. The withdrawal may be taxable depending on the type of retirement plan..

There are various ways to plan your child's educational cost, but not all of the items discussed applies to all individuals and can be used at the same time. Uncertain as to what is the best option for you or you would like to know more of tax planning for your child's future? This article is an example for purposes of illustration only and is intended as a general resource, not a recommendation. http://www.cpafirmsouthflorida.com/

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