Student Loan Debt Consolidation

Latest research on college education shows that nearly forty percent of graduates will take a minimum of ten years to repay their student loans. In accordance with recent news, student loan debt has even surpassed auto-loan and credit card debt. With the rising cost in education and other essentials of life, a lot of people are facing serious financial troubles. For people burdened with a huge amount of student loan debt, a debt consolidation program may prove to be quite helpful. These days, quality education is an indispensable part of life; but sadly the expenses of such a high-class education have been escalating far quicker than the rate of inflation. 

Many school and college students are able to cover their tuition and other schooling-related expenditures, thanks to federal student loan aid. Even though these loans could be extremely beneficial for students, they need to repay the borrowed funds soon after their graduation. Those who obtained a number of student loans over many years, may look for ways to lessen student loan debt through debt consolidation program. With this process, a borrower is able to merge all his federal student loans into one, usually resulting in a lesser monthly payment, elongation of the reimbursement period, and perhaps a lower rate of interest. 

Student loan debt consolidation – Important facts

Student loan debt consolidation is pretty similar to any other kind of debt consolidation, where a borrower or his debt consolidator negotiates one huge loan with a lending organization to repay all his liabilities. If you own several student loans that you need to pay back, a debt consolidation program proves to be quite useful. This program comes with several benefits:

• Lower rates of interest
• Fixed interest rates
• Single monthly payment

There are numerous banks and financial organizations that offer student loan debt consolidation; all your current student loans are refunded to their particular lenders. This debt relief program works by aiding you financially handle your debts. All your multiple loans and debts are combined into a single loan, thus making your reimbursement amount more affordable with lesser interest rates incurred. 

Aiming for higher education is not always an easy thing to achieve, particularly because of the high miscellaneous fees, housing and education fees that college universities ask for. However, on the positive aspect, going to university and attaining your desired degree is possible, thanks to the extensive range of student loan support – both federal and private. Under the trying financial times, one often takes out more than a single loan to meet his or her requirements. If you have a number of student loans and find it difficult to manage all of them, you can take help of a student loan debt consolidation program. All your student loan debts get consolidated into a single and affordable monthly payment, making you life much easier.

Exploring all your options on hand

When seeking student loan debt consolidation, it is essential to go through all of the available options, and to ensure you are obtaining the best pay off deal. Different programs are available for different students, and it’s advisable to explore all programs before choosing the one that’s best for you. 

Guest Blogger: Jack Hudson 
Author Bio: Jack is a financial writer and enjoys writing articles on the global financial situation, debt elimination, pay off debt, debt consolidation, credit card elimination, pay off debt etc along with other finance-related topics.

Break-up With Your bank

Suppose I told you there were two burger joints side-by-side: one with excellent food at an affordable price, and one that served overpriced, disgusting, reconstituted meat.  I bet you would tell me that the repulsive, expensive burger restaurant would soon go under.  Succumbing to the market pressures of being pitted against a superior business.  That’s the way capitalism is supposed to work.  Unfortunately it’s not right now in the banking industry.  
 

Our nation’s biggest banks are amongst the worst depositories out there.  Bank of America continually tops the MSN’s Customer Service Hall of Shame.  Other top ten losers include: JPMorgan Chase, Citigroup, and Capital One.  The causes for concern: outrageous overdraft fees, ATM fees, debit card fees, and downright poor customer service.  From ClarkHoward.com, “I saw a disturbing story about banking analyst who said he's gung ho for big bank stock, particularly Wells Fargo, because they have made a decision not to fix any customer problems. It's more profitable for them to let people stew and not waste money or employee time on fixing any customer problems.”

Why aren’t people moving their money if these companies are consistently rated as unsatisfactory and try to fee their customers to death?  The number one excuse is convenience.  “The big banks are convenient, they have lots of ATMs and I don’t feel like having to set up my auto-pays and bill pay again.”  

Well folks it’s 2012 and it is time for a change.  Stop falling prey to these banks with inferior products and services and disdain for you as a customer.  There are many great credit unions and online banks out there that would love your business.  Companies that will treat you humanely and SAVE you money.  So what if BoA have lots of locations and ATMs, companies like USAA, Ally Bank, and Schwab Bank will allow you to use any ATM in the country and they will reimburse you.  Many online banks even allow you to deposit checks by taking a picture of them with your smart phone.  Who really wants to take off work and go into the local branch just wait in line?  Break the ball and chain and go fee free.  

Do yourself, your wallet, and capitalism a favor and break-up with your bank.  And tell them it’s not you, it’s them.  

Find a Credit Union near you:  Click here for link 

Charles Schwab Bank High Yield Investor Checking: 

• No minimum deposit to open.  No monthly maintenance fees.
• Use any ATM.  Schwab will reimburse you. 
• Use your smart phone to deposit checks from anywhere. 
• Free checks.

USAA Free Checking:

• No minimum deposit to open.  No monthly maintenance fees.
• Use any ATM.  USAA will reimburse you up to $15/mo. 
• Qualifying members can use their smart phone or computer to deposit checks from anywhere, or deposit checks at more than 1,900 locations of The UPS Store® nationwide.
• Free checks.

Ally Bank Interest Checking:

• No minimum deposit to open.  No monthly maintenance fees.
• Use any ATM.  Ally will reimburse you. 
• Use your computer and scanner to deposit checks from home.
• Free checks.

ING Direct Electric Orange Checking:

• No account minimums.  No monthly maintenance fees.
• ING does not reimburse ATMs fees, but you have access to over 35,000 fee free ATMs.
• Use your smart phone or computer to deposit checks from anywhere.

Are you happy with your current bank or credit union?  Are they doing a great job of serving you as a customer?  Do your friends and the bank a favor and share the good news!


Guest Blogger: Cam Moore

Financial App Review - Credit Karma

If there is one thing I stress the most, it is definitely knowing your financial fingerprint, better known as your credit score/report.  Please check out my previous post about your financial fingerprint, it is truly your life line in the financial world. [Your Financial Fingerprint]

Recently I came across this new app called, Credit Karma, they also have a dynamic website: www.creditkarma.com.  This app and website allows you to check your credit score for free, yes I said it, FREE.  It also gives you a personalized credit report card. This app is just too cool to not take advantage of!   

Ease of Use:  A

This app is by far the best I have seen for credit monitoring and to top it off it is free.  It is very simple to navigate, it explains the different terminology used such as debt –to-income ratio and what that specifically means to you.  I am truly in love with this app!

Frequently Used: A

This is definitely opinion based, but unlike most apps on my phone, this is an app I use rather frequently!  It is great to know your credit score before going into any type of financial transaction, the higher your score the better your negotiating power.     

Security: B+

If you lose your phone, you lose a lifeline - at least that’s how I feel.  I gave the security feature a B+ - the app allows you to enable a security password in order to open the app but it’s only a 4-digit code.  If someone really wanted to break the code, and had the time to, they probably could do so.  On the other hand they will only know your credit score and the debt you hold, if any.  This app does not show account numbers, etc.  

Cost: A-

The app is free so what’s the catch?  Well… in exchange for a free credit report and score Credit Karma shows relevant ads within the notifications tab and on the bottom of the screen; however, this is not unusual for most free apps.  Like most free apps and social media apps there are ads that specifically target you – whatever information you input there will be an ad just for you!     

  

Overall I think this app is awesome.  The only downfall, right now, is that this app is only available for iPhone.  Do not be discouraged my fellow android enthusiast, Credit Karma is working on an app for the android system.  I will update you when it is available!  In the meantime, I will encourage you to check out their website and get started with DIY credit monitoring!

Let’s chat:

Are you currently using the Credit Karma app?  How do you like it?  

Repaying Your Student Loans

There are three things certain in life: taxes, death and repaying your student loans.  In the beginning of the year there was a big push to have student loans forgiven after 10 years of repayment, but that bill is at a halt (click here to check out that post).  For now there is not a magic wand that will make your student loans disappear, but if you find that wand please let me know so I can make my student loans disappear, too!  

Ok seriously, there are so many repayment options to choose from no matter your financial situation.  You just have to know which option works best for you.  Check out some of the options below for federal student loan repayment plans. 

Credit: Mike Booher

Standard Plan:

With this plan you will pay a fixed monthly amount over a 10-year period.  This plan has a higher monthly payment than the repayment options listed below, however when the loan is repaid you will end up paying less interest.

Extended Plan:

This plan’s repayment option is just as it sounds, extended.  You pay a fixed monthly amount over a 25-year period.  With this option you must have over $30,000 in federal student loans.   

Graduated Plan:

This plan’s repayment option will increase your monthly payments every 2 years for up to 10 years.  This plan may seem favorable if you are in financial duress now, as the payments starts off lower than the standard plan, but in year 8 or 9 (for example) the monthly payment may be extremely high.  

The next few repayment plans are very specific to your financial situation. There are a lot of details, but I will keep it simple so you can get the gist.

Income-Based Plan:

Your monthly payments are based on your discretionary income which is defined as the difference between your Adjusted Gross Income (AGI) and 150% of the poverty guideline for your family size.  This plan also takes into consideration your state of residence.   The maximum number of years for repayment is 25 years.  After 25 years of on-time payments your student loan may be forgiven.  

Income-Contingent Plan:

This plan is based on your annual income (not your discretionary income like the plan above).   This plan also takes into consideration your family size.  If you are married, this plan includes your spouse’s income in the annual income calculation.  The maximum number of years for repayment is 25 years.  After 25 years of on-time payments your student loan may be forgiven.   

Income-Sensitive Plan:

Similar to the plan above, this plan is conscious of your annual income and fluctuates as your incomes changes.  The maximum number of years for repayment is 10 years. 

Need Answers?

If you have any questions or in financial duress and cannot pay your student loans at this time, it is best to contact your loan servicer to discuss options.  The worst option you can choose is the option to not honor your student loan obligation.  If this option is chosen, your loan may go into default.  When your loan is in default legal action may be taken against you and you may lose the privilege of borrowing for other government loans (which includes financing for a FHA home loan when you're ready to buy).

Don’t know how much you borrowed?

Check out the National Student Loan Data System:  http://www.nslds.ed.gov/nslds_SA/

Alternative Options for Repayment

If you are not wedded to your current location then moving to a rural area may pay off immensely.  Companies in rural areas, such as counties in Kansas, are luring in young professionals by taking advantage of the “Rural Opportunity Zones Program”.  This program will repay your student loans up to a certain amount over the course of X amount of years.  It varies with each company and I am sure there is some level of commitment you will have to make, but hey, it may be worth it! 

Let’s chat:

Were you shocked at the amount of student debt you walked away with?  Would you do anything differently?

Preparing Yourself for Success

On January 1st many of us made a commitment to ourselves (personal or professional) that in 2012 you will [insert your goal here]. We are half way into the year and hopefully you are at a half way point with your goal.

GFN blog reader, what steps have you taken to achieve this goal?  My goal in life, among many others, is to be successful – this may be your goal, too!  However just having the goal of success is not enough.  I challenge you to define your description of success.  If you do not take measurable actions with tangible results, this goal may never be achieved.   

What does success look like for you?

Before you answer, if money is your tangible measurement of success then you have been misled.  Now don’t get me wrong, money will make most of our lives less stressful, but if your sole motivation is money then you will never be satisfied.  Trust me; it will never be enough money.  You will want more and more and… you get the picture.  Success, in my opinion, should be measured by attainable goals you set and can achieve.  Money will inevitably come if you are pursuing a career or passion that you love.

Creating S.M.A.R.T. Goals

I cannot remember who shared this mnemonic with me so long ago – but thank you!  Now I will share it with you.


S – Specific
Your goal must be clear and precise. 

To give you a tangible example with this mnemonic, I will share one of my 2012 goals with you – I want to be debt free (excluding my lovely mortgage and student loans).  I want to pay off Moe, Larry and Curly.    

M – Measurable
Track your progress and know when you have reached your goal.  Make sure you define specific criteria for measuring your goal.  In other words, set small goals throughout the year to ensure the achievement of your goal(s).    

In January I sat down and added up what I owed to Moe, Larry and Curly. I projected out where I should be in six months as far as my debt balance. To do this, I calculated my current payments factored in the interest and concluded that if I wanted to be debt free I need to pay an extra $X amount every month.

A – Attainable
It is great that you are setting goals or have set goals for yourself; however, are your goals attainable in the amount of time you have given yourself?  It is so important to think about the time frame because you do not want to set yourself up for failure.  You will feel defeated and quit.  

For my goal - I contemplated if I could actually pay an extra $X amount every month.  I looked over my monthly budget (of course I have a budget) and decided that I could make the extra payment.  .           

R – Realistic / Relevant
Choose a goal that will push you forward in life.  If your time and energy has or is going to be spent trying to achieve this goal, just make sure it is worth it.  

Paying off Moe, Larry and Curly by the end of the year is realistic because I will and have made extra payments.  In order to make the extra payments, I have to sacrifice in other areas of my budget such as dinning out/shopping/etc.  In order to achieve your goal, you may have to sacrifice in areas of your life, too.

T - Time  
It has been stated throughout this post that setting a time frame for your goals is of utmost importance.  If you set a goal with no time frame, you’ll be trying to achieve this goal for the rest of your life. 

I gave myself until the end of the year and will do whatever I need to do to achieve my goal. 

 

Let’s chat:

It is so important to have goals in life.  I shared one of my goals with you, what are some of your goals and what have you done to make sure you achieve it?



Rianka D.   

Cutting Costs without Cutting Class

For many, there isn`t much not to love when it comes to weddings and all the fun details that come along with them!  From seasons to color schemes, dresses to jewelry, flowers to décor, and food to cakes, the options are truly endless.  But what about one of the most important details of all? Yes, it even rivals the coveted wedding gown.  I`m talking about the WEDDING BUDGET!  While not as fun as a cake tasting, as artsy as playing with invitations at your local craft store, or as shiny as shopping for wedding bands, it definitely should NOT be overlooked or taken lightly.  Your budget establishes the framework for every point between your engagement and “I Do”, and should be regarded seriously as a point of reference prior to all financial decisions.  Of course it`s tempting to want to throw it to the wayside or constantly increase the budget threshold as you plan, but what are some ways you can maintain your budget by cutting costs without cutting class or coining yourself a “cheapskate”?  

 

Consider my Top 10:

• Tip #1:  When selecting florals, choose flowers that are IN SEASON.  
  They will be more readily available to your florist and minimize overhead costs related to shipping/flying the flowers in from other locations.

• Tip #2:  Reuse and repurpose!
  Consider using some or all of your bridesmaid bouquets as centerpieces for your reception!  Flower balls are a great alternative to the traditional bouquet, and look beautiful as toppers on tall glass vases! 

• Tip #3:  Choose your wedding date and corresponding venues wisely!
  Beware of choosing dates around federal Holidays and other popular times of year (i.e. Valentine`s Day, or Disney World in the winter months).  Situations like these give venues more power to raise their prices, because they know they will get many competitive bids for their business!  Aside from the cost-factor, being mindful of Holidays is also more courteous for your guests and wedding party. 

• Tip #4:  Consider marrying on a day other than Saturday!
  Many venues host their big events on weekends (with Saturday being the heaviest day for event traffic), so marrying on a different day could give you more haggling power with your venue!  They need your business on their lighter days.  

• Tip #5:  Make your venue work for you!
  Does your ceremony or reception venue have candelabra, greenery, linens, or any on-site rental equipment?  USE IT!  Even if they charge you a nominal fee, it`s still probably cheaper than going through an event rental company or an external caterer.  If you like the colors of your event spaces, consider choosing wedding colors that match or compliment.

• Tip #6:  Be crafty with your cake.
  A plain sheet cake from a local bakery is much cheaper than a tiered, elaborately-decorated cake from a cake decorator.  Therefore, purchase a smaller pretty cake for your cake cutting (which is the main reason for having a cake in the first place), but have a sheet cake in the back ready to be cut and distributed to your guests!  This way you have a pretty cake and another that tastes good to satiate your guests, and you have a few extra dollars in your pocket!  

• Tip #7:  Cut the favors.
  If you`re purchasing favors just to say you had favors, forget it.  If you`re purchasing favors that are symbolic to your wedding or to your lives as a couple, there are still a few alternatives.  Consider using seed paper for table cards with your guests` names on them.  After your wedding, they can plant their table card and watch it grow, thinking of you with every bloom!  Another alternative is to ask guests to make donations, and write a check to a cause or charity on your wedding`s behalf.

• Tip #8:  Save the money on your save the dates!
  Consider electronic save the dates/Evite announcements and leave the snail mail pretty postage for your wedding invitations!  Websites work well too for all of your wedding details and updates.
  $0.44 x 150 guests = $66.00 savings

 

• Tip #9:  Invitations – mail what you need.
  Wedding invitations can get pricey quickly.  Have you ever seen those box sets of invitations at your local craft store?  Many of them come with ample inserts and extra decorations.  All that stuff = added weight, which also = added postage!  Just because the kit comes with 8978235 inserts, don`t feel obligated to try to find a use for every single one.

• Tip #10:  Rethink your alcohol.
  You don`t have to get rid of it entirely, but consider limiting your wine/liquor selections.  An easy workaround for this is to work with your caterer to create a signature drink for your wedding day for your guests!  Another option is to have a wedding and reception earlier in the day when heavy alcohol consumption isn`t as much of an expectation.  The later in the day you host your reception, the heavier your food choices need to be, and the greater the expectation becomes that alcohol will be present.

 
 

Weddings can still be beautiful without putting you in debt.  Instead of trying to outdo every couple who has married before you, consider focusing more on what your marriage is REALLY about – two soul mates proclaiming their love for one another and making the commitment to start a new life together as one.  

Alana Mallory
Event Coordinator | Blogger | Owner, Sequin Soirees