student loan consolidation - direct loan program

The Higher Education Act (HEA) provides for a student loan consolidation program under both the Federal Family Education Loan (FFEL) Programs and the Direct Loan Program. Under these programs, a borrower’s loans are paid off and a new consolidation loan is created. These programs simplify loan repayment by combining several types of Federal education loans (that may have different terms and repayment schedules or may have been made by different lenders) into one new loan. The interest rate may be lower than on one or more of the underlying loans. In addition, the monthly payment amount on a consolidation loan is usually lower and the amount of time to repay may be extended beyond what was available in the separate loan programs. These features should result in more manageable debt and should make borrowers less prone to default.

UK student loans

the majority of students, a loan will comprise of the tuition fee loan plus a maintenance loan, and this will be paid directly at the start of each academic term. Everyone on an eligible course qualifies for 75% of the maximum loan, regardless of income, and the rest is income-assessed. These loans accrue interest at the rate of inflation, which means that the amount repaid has the same value as the amount borrowed.

The repayment of loans is repaid through the tax system, and only begins after the student has left higher education and is earning over £15,000. This system of collection is known as Income-Contingent Repayment (ICR), because it tapers the repayment obligation according to the gross income of the account holder. It is distinct from the previous mortgage-style scheme in which the monthly repayments were fixed and account holders whose incomes exceeded the deferment threshold, were required to repay the entire instalment each month.

SLC becomes responsible for the administration of financial support after the award authority has completed the income assessment and eligibility elements of the application process.

SLC provides a broad range of products & services to education funding in the UK.

Part time students UK

The main sources of help for part-time students are:

1.A Fee Grant (to help with tuition fees) - paid directly to your college or university
2.A Course Grant (to help with study costs, such as books, materials and travel) - paid directly to you

What’s available will depend on your personal circumstances and the course you’re doing.

You won’t have to repay any help you get through the Fee Grant or Course Grant.

Your university or college decides how much the tuition fees are for part-time courses: there’s no minimum or maximum amount.

If you study part-time, it’s assumed that you’ll meet your living costs through work and savings. But if you’re on a lower income, you may be able to get financial support aimed at helping you pay for tuition fees and costs related to your course (such as books and travel).
The maximum Fee Grant you can get is based on how ‘intensive’ your course is - how long it will take to complete compared to an equivalent full-time course.

For the most intensive courses, a maximum of £1,435 is available for 2008/2009 through the Fee Grant and Course Grant combined.

If you’re receiving certain benefits, you’ll get the maximum Fee Grant and the maximum Course Grant available for your course’s intensity.

Full time students in UK

sudents should study first, pay back when you’re earning

There’s a student finance package available to help with the costs of higher education. The main

sources of help for full-time students are:

1. Student Loans and grants from the government
2.bursaries from universities and colleges

If you take out a Student Loan from the government, you won’t have to start paying it back until

you’ve left your course and are earning more than £15,000 a year.

And any help that you get through a grant or bursary doesn’t have to be repaid at all.
Who does this information apply to?

The pages within 'Student finance: what you can get for 2008/2009' outline the help available if you:

first point you shoild live in England, and the second is that you are a new student, or you started in or

after 2006/2007

The package of financial help available will be different if you live outside England. It will also be

different for students who started in 2005/2006 or earlier - and for some students who started in

2006/2007 after taking a gap year.

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.