How To Consolidate Federal and Private Student College Loan Debt

Consolidation loans are available for both students and parents during the grace period or after loans enter repayment. Loan consolidation for students is no longer available while they are attending school. Parents can consolidate PLUS loans at any time. Before consolidating a student loan, take time to see if the consolidation will be beneficial. Certain lenders offer private student consolidation loans for students with private education loans. Consolidation loans are available for almost all federal student loans.

Advantages for Student Loan Consolidation

One of the largest advantages for consolidating student loans is access to alternate repayment plans beyond the standard ten-year term. Consolidation loans often reduce the monthly payment amount by extending the term of the loan beyond the ten-year repayment plan. Loans can be extended from 12 to 30 years, depending on the loan amount.

Student loan consolidations may give the borrower an opportunity to lock in a low interest rate for the life of the loan.

Consolidation will eliminate having to make multiple payments to different lenders each month. The borrower will have a single monthly payment to one holder.

Disadvantages of Student Loan Consolidation

The largest disadvantage to extending the loan terms on a consolidation is the increase of interest paid on the outstanding debt. The total overall repayment of the loan will increase depending on the repayment time frame.


Incentives offered by the current lenders of student loans could be lost by consolidating loans. Review the terms of consolidation closely.

Perkins loans will lose interest subsidy and cancellation benefits if they are included in the consolidation loan.

Loan Calculation Chart for Student Loan Consolidation

The average interest rate for a student loan consolidation is 6.8 percent. Repayment term length is based on the total education debt being consolidated. The following information are examples of typical monthly payments at 6.8% interest after loan consolidation:

Consolidated Amount / Repayment Term / Monthly Payment

$20,000 / 10 years / $230

$30,000 / 10 years / $345

$40,000 / 15 years / $355

$50,000 / 20 years / $382

$60,000 / 25 years / $416

Interest rate for the consolidated loan will be the current weighted average of the loans included in the consolidation and rounded up to the nearest one-eighth percentage.

Considerations Regarding Student Loan Consolidation

There are no fees or up front costs for consolidating student loans. Certain federal eduction loans, such as PLUS loans and the Stafford, may included fees, these fees are always deducted from the disbursement check. Be leary of any loans with upfront fees, this is usually an advanced fee loan scam.

Applying for a consolidation loan can take between 30 to 90 days. Always continue making monthly payments on any loans until notification of the new consolidation loan is complete. Once loans are consolidated, the first payment is due within 60 days.

How to Get an Unsecured Cash Loan: An Emergency Cash Loan with No Credit Check

No matter how bad someone’s credit history, it is still possible to get approval for an unsecured cash loan with no credit check. The absence of credit scoring means that it is a guaranteed emergency cash loan for those who are able to meet a very basic set of eligibility criteria. A quick cash advance should only be considered a short term loan as the rate of interest is high and isn’t sustainable over the long term. However, as it is only available for a calendar month, its repayment is normally very affordable.

Unsecured Cash Loans vs Pawn Shop Loans

A credit union or instant cash payday loan can help someone out of a short term financial hole. Those who don’t meet the eligibility criteria, perhaps because they are unemployed or don’t have an active checking account, may be able to get a loan from a pawnbroker. However, the borrower will need to provide the lender with collateral (gold, jewelry, electrical equipment etc). The representative will value the item and offer an emergency cash loan based on its value. If the item isn’t redeemed, it will be sold on in order to clear the debt.

No Credit Check Instant Cash Payday Loans

The eligibility criteria used by payday lenders is completely different to that used by the banks. Although there is no credit scoring for an instant cash payday loan, the borrower will need to be a U.S. citizen, at least 18 years old, in full-time employment (minimum income $1,000), have a valid checking account and provide 2 forms of identification. The cost of a $500 emergency cash loan is about $125 a month. It is important that both the principal and any interest that has accrued is repaid at the end of the term.

Unsecured Credit Union Loans

A credit union is a non profit organisation that operates purely for the interests of its members. People typically join on the basis of locality, employment or religion. Once a member, it may be possible to get an unsecured cash loan. Although the repayment terms of a credit union loan are the same as an instant cash payday loan, they will provide greater assistance in the event of money issues.

Pros and Cons of an Emergency Cash Loan

An unsecured cash loan from a credit union or payday lender can help someone who is struggling to meet a short term financial obligation, such as paying the rent. Although there aren’t any restrictions on how the money should be spent, it shouldn’t normally be seen as a way of funding a lavish holiday. An instant cash payday loan isn’t cheap so any interest and charges will quickly accrue in the event of default.

Five Tips for Paying Back Student Loans

You’ve worked hard for the past four years; you have your diploma in hand. You’re even lucky enough to have a job after you graduate. You racked up quite a bit of debt so far, in the form of students loans. Now that you have the college diploma and the dream job, how are you going to pay back those student loans? Here are a few tips to get you started:

Start paying back before you graduate

While you were busy studying and working hard to get that shiny new diploma, what you should have been doing was paying the interest on your student loans. Think about it, later on, would you rather be paying down the original amount you borrowed, or would you rather pay interest on the interest on the original amount? While it’s understandable that you’re a college student and can’t afford much, you should be a minimum of $20 a month toward your loans during the school year. When you have that full time summer job, you should increase that amount. Paying a little back at a time while you’re still in school will not only look great for you, it will make those loans a lot easier to pay back when you graduate.

Take payments out of your paycheck before you ever see it

Ask your employer if you can have student loan payments deducted directly from your paycheck. That will make it impossible to skip a payment because you really wanted to take that weekend trip or you just have to have those new shoes. If you never see the money, you can’t spend it and you’re guaranteed to have payments in on time!

Pay your loans with income tax refunds

Every year that check comes and most people run right out and spend it on shiny new things they can’t afford any other time. Instead of buying more shiny new things that you don’t really need, direct that payment to your student loans. Remember, the faster you pay those loans off, the less interest you are going to have to pay. Use your income tax refund to make a big dent in those loans and cut back the principle you’re paying interest on.

Make two monthly payments

Rather than just making the one payment you’re required to make, send two. You know you want to get those loans paid off as soon as possible, but you have to pay bills too. You can’t afford to have more coming out of that one paycheck. The solution is simple: make the one required payment first, and then send a little extra out of your next paycheck! You will be paying off your loans faster and it won’t hurt quite as much.

Don’t go nuts when you get that first job

A lot of people are tempted to go nuts when they get that first good paying job after college. Don’t be that person! Take it slow. Rather than rush out and buy a pretty new car, or move into a condo with an amazing view, spend an extra year living in that cheap apartment with the pizza stained furniture. Sure, it may not be impressive, but the loans you will qualify for because you have great credit will be impressive! Spend all that extra money on paying off your debt rather than increasing your living expenses. Remember, that condo is going to cost you and full coverage insurance really drains your financial resources. When you do finally get that new car or dream house, you will be in a better position, financially, without the extra expense of student loans, and will a good, solid credit rating to help you out along the way.