debt managment helps student

It helps the student to plan his/her repaying program. student`s financial situation will be stabilized and he/she will most likely have additional money in your monthly budget for essential items. so every student will have a clear plan for resolving their credit problems and they’ll have the encouragement to work on that plan until any student is living debt free. Certified credit counselors will design a debt management plan to meet every student`s specific needs and help them get back on a manageable budget. A debt management plan is for the students if they want:
Reduced creditor calls.
Reduced payments.
Reduced interest and finance charges
Waived late and over-limit fees.
Help with reestablishing credit.
Support in maintaining your commitment to becoming debt free
Having your debts paid off in a realistic and reasonable length of time

Debt Consolidation -- Means

An agreement is worked out with your creditors based on what you can afford to pay. In many instances payment amounts and interest are lowered helping you to get out of debt quicker and for far less money.

Debt consolidation is typically some type of loan in which most or all of a consumer’s debt is rolled into one payment. Loan types can include signature, second mortgages, home equity line of credit and others. Although in some situations debt consolidation loans can afford a consumer an opportunity to address high credit card interest rates or multiple payments to multiple creditors there are some common risks involved. To begin with, caution must be used in the type of loan chosen. Think long and hard about consolidating unsecured debt to a loan secured by your home. In a worse case scenario, you are putting your home at risk. Also, carefully examine the terms of any consolidation loan with a variable interest rate for what rate increases could mean to you down the road. Finally, understand this – research shows that consolidating your debt into another loan to gain a handle on debt, often back fires on consumers. Odds are that within one year you will increase your debt by using the same credit cards you paid off in the consolidation loan, finding your self making payments not only on the credit cards but also on the consolidation loan.

STUDENT LOAN CONSOLIDATION

Student Loan consolidation - LOANS

Student loans, unlike grants and work-study, are borrowed money that must be repaid, with interest, just like car loans and mortgages. You cannot have these loans canceled because you didn’t like the education you received, didn’t get a job in your feld of study or because you’re having financial difficulty Loans are legal obligations, so before you take out a student loan, think about the amount you’ll have to repay over the years.

Types of Loans:

Federal Perkins Loans are:

• Made through participating schools to undergraduate, graduate and professional students.
• Offered by participating schools to students who demonstrate the greatest financial need (Federal Pell Grant recipients get top priority).
• Made to students enrolled full-time or part-time.
• Repaid by you to your school.

• Stafford Loans are for undergraduate, graduate and
professional students. You must be enrolled as at least
a half-time student to be eligible for a Stafford Loan.

STUDENT LOAN COMPARISION

TYPES OF LOANS	ELIGIBILITY	LOAN AMOUNT	INTEREST RATE	REPAYMENT PERIOD
Federal Perkins Loans	Undergraduate and graduate students; do not have to be enrolled at least half-time*	Undergraduate—up to $4,000 a year (maximum of $20,000 as an undergraduate) Graduate—up to $6,000 a year (maximum of $40,000, including undergraduate loans) Amount actually received depends on fnancial need, amount of other aid, availability of funds at school	5 percent	Lender is your school Repay your school or its agent Up to 10 years to repay, depending on amount owed
FFEL Stafford Loans	Undergraduate and graduate students; must be enrolled at least half-time*	Depends on grade level in school and dependency status (see chart on page 11) Financial need not necessary	Changes yearly; for 2005-06 was 5.3 percent for loans in repayment For those with fnancial need, government pays interest during school and certain other periods	Lender is a bank, credit union, or other participating private lender Repay the loan holder or its agent Between 10 and 25 years to repay, depending on amount owed and type of repayment plan selected
Direct Stafford Loans	Same as above	Same as above	Same as above	Lender is the U.S. Department of Education; repay Department Between 10 and 30 years to repay, depending on amount owed and type of repayment plan selected
FFEL PLUS Loans	Parents of depen­dent undergraduate students enrolled at least half-time* (see dependency status); parents must not have negative credit history	Student’s Cost of Attendance* - Other aid student receives ___________________________	Changes yearly; for 2005-06, was 6.1 percent for loans in repayment; government does not pay interest	Same as for FFEL Stafford Loans above
		= Maximum loan amount
Direct PLUS Loans	Same as above	Same as above	Same as above	Same as for Direct Stafford Loans above, except that Income Contingent Repayment Plan is not an option

Federal Stafford Loans

Cash in on a great offer! Get one of the most affordable loans available. Federal Stafford Loans are government-secured student loans available to undergraduate and graduate students at rock-bottom rates. There’s no collateral or credit check required, and payments are deferred until you graduate. "

Stafford Loan Eligibility

• You must have submitted a FAFSA to be eligible for a Stafford loan.
• For subsidized Stafford loans, you must have financial need as determined by your school.
• You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
• You must be enrolled or plan to enroll at least half time.
• You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program.
• You must not be in default on any education loan or owe a refund on an education grant.

Stafford Loan Interest Rates

Note: Graduate Stafford Loans (both subsidized and unsubsidized) have a fixed interest rate of 6.8% through 2013.

Academic Year	Subsidized Rates	Unsubsidized/Graduate Rates
2007-08	6.80%	6.80%
2008-09	6.00%	6.80%
2009-10	5.60%	6.80%
2010-11	4.50%	6.80%
2011-12	3.40%	6.80%
2012-13	6.80%	6.80%
Current Stafford Loan interest rates in effect from 07/01/2008 to 06/30/2009

Federal Student Loan Consolidation Rates

		Rates through June 30, 2007		Rates effective from July 1, 2007
	Date Disbursed	Grace Period Rate	Repayment Rate	Grace Period Rate	Repayment Rate
Stafford	7/2006 - Present	6.8% Fix	6.8% Fix	6.8% Fix	6.8% Fix
	7/1998 - 6/2006	6.54%	7.14%	6.62%	7.22%
	7/1995 - 6/1998	7.34%	7.94%	7.42%	8.02%
	7/1994 - 6/1995	7.94%	7.94%	8.02%	8.02%
	Prior to 7/1992	8.09%	8.09%	8.17%	8.17%
PLUS	7/2006 - Present	8.5% Fix	8.5% Fix	8.5% Fix	8.5% Fix
	7/1998 - 6/2006	7.94%	7.94%	8.02%	8.02%
	7/1994 - 6/1998	8.34%	8.34%	8.05%	8.05%
	10/1992 - 6/1994	8.34%	8.34%	8.05%	8.05%
	7/1987 - 9/1992	8.49%	8.49%	8.20%	8.20%
Grad PLUS	7/2006 - Present	8.5%	8.5% Fix	8.5% Fix	8.5% Fix
Perkins	All Disbursements	5%	5%	5%	5%

common view - Student Loan Debt Consolidation

A student loan debt consolidation loan allows you to combine your federal student loans into a single loan with one equal monthly payment. The repayments of a student loan debt consolidation loan can be significantly lower than the payment required under the standard 10-year repayment option. Under the Federal Family Education Loan (FFEL) Program, banks, secondary markets, credit unions, private bankers and other lenders provide the student loan debt consolidation loan. Under the William D. Ford Federal Direct Loan (Direct Loan) Program, the federal government provides the student loan debt consolidation loan.
Most federal education loans are eligible for inclusion in a student loan debt consolidation loan, including subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. However, private education loans are not eligible for inclusion in a student loan debt consolidation loan.
To find out which loans can be included in a student loan debt consolidation loan contact the Direct Loan Origination Center's Consolidation Department if you’re applying for a direct student loan debt consolidation loan. Contact a participating FFEL lender if you’re applying for a FFEL student loan debt consolidation loan.

It is worth noting that you are still eligible for a student loan debt consolidation loan after you graduate, leave school, or drop below half-time enrollment. You can also get a student loan debt consolidation loan while you're in school. You must, however, be attending at least half time and have at least one Direct Loan or FFEL in an ‘in-school period’ which generally means that you have been continuously enrolled at least half time since the loan was disbursed. There are a number of conditions that need to be met for you to qualify for a student loan debt consolidation loan, particularly if you are delinquent or in default and your loan holder will be able to give you all the necessary information.
If the same holder holds all the FFEL loans you want to consolidate, you must obtain the student loan debt consolidation loan from that holder, unless you haven't been able to get a loan with income-sensitive repayment terms that are acceptable to you. To be eligible for a William D. Ford direct student loan debt consolidation loan, you must have either a direct Stafford subsidized or unsubsidized loan that will be included in the student loan debt consolidation loan or have at least one Federal Family Education Loan (FFEL) program Stafford subsidized or unsubsidized loan. this link provides you more information.

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