How Students Large College Loans Might Be Hurting the Economy

The saying goes that the only things that are guaranteed in life are death and taxes. However, more and more there's been another addition to that list. The new guarantee seems to be that if you go to college, you are going to be burdened with tremendous amounts of debt for years to come. The question is, what are the implications of this?
College debt for students seems to constantly be increasing. Private institutions around the country are charging upwards of $40,000 and some are even pressing up on the $50,000 level. While there are a number of scholarships available today to reduce the burdens students are suffering, it is still not uncommon for students to leave school with upwards of $50,000 in debt. If you add medical school or law school to the mix, and you're likely to break into the six figures of debt.
What do these college loans mean for the economy as a whole? As these debts grow larger and larger, students are looking at bigger monthly payments. As a result, the amount of disposable income available to these graduates is lower, preventing them from having the purchasing power needed to galvanize the economy and from buying homes as early as they might have without those large debts. As students push off settling down and buying homes, the market for new homes loses a valuable market.
Finally, a dangerous implication of these large loans being placed on students graduating from college, is the creation of a society in which people don't recognize the significance of their debts. When a 23 year old graduates from college with debts of sixty to one hundred thousand dollars, they become desensitized to the reality of their debt and feel no issue spending more on future purchases. A thirty thousand dollar car to someone already facing one hundred thousand dollars of debt seems like a trivial added cost. As such, the question becomes how much does the debt affect a person's mindset, and how much debt is too much.
Overall, as the country looks at ways to improve after facing the challenges of a large recession, one area that is worth investigating is the tremendous college debt facing students today. While the government has begun to tackle the issue by investigating for profit colleges, it is likely only the start in confronting the United States education system.

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Student Loans Consolidation - Three Benefits That Make Your Life Simpler

If you are a student or a graduate, it's quite likely you accumulated a bit of student debt while paying for college. This almost goes hand in glove with American higher education these days. If this is you, you likely have multiple student loans, each with a different amount due, a different interest rate, and a different payment schedule. For some people, this is manageable. For others, it's a nightmare.
Juggling the amounts, the balances due, and the payment schedule can wreak havoc on your life. This is especially true if your paycheck doesn't go as far as you'd hoped when you were in college. If you want to simplify your life, you should consider student loans consolidation.
There are three main benefits that make it worth your while.
Predictability
If you consolidate your student loans, you no longer have multiple loans to keep track of. They are all rolled into one. With one loan, you only owe money on one balance, and you only have to make one payment each month. Compared to the chaos of managing multiple loans, this is an easy pattern to fall into.
Certainty
A benefit of having only one loan to pay back is that you only need to worry about one interest rate. You don't have to spend time calculating how much money each loan is costing you in interest, and prioritizing your loans to see which one you should make the payment on this month. Having one interest rate gives you certainty.
Consistency
Finally, if you consolidate your student loans, you don't have to keep track of all the due dates on the calendar. You no longer have to write three or four checks on different days every month. You simply write one check. You no longer have to track how much you still owe on three or four loans, either. Writing one check each month simplifies your life. You can do this consistently, without any problem.
Student loans consolidation can make your life simpler in many ways. And, simpler means better. Look into consolidating your student loans and see if you can benefit, too.

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Student Loan Consolidation - A Way to Save Money

So you have a great need to use every penny as smart as possible, i.e. to get the biggest benefit from every dollar. If you have several student loans, both the private and federal ones, you can save money with a simple student loan consolidation, even hundreds a month!
1. The Student Loan Consolidation Can Be Done For Private And Federal Student Loans.
Student loan consolidation can be done for both the private and federal loans. The consolidation is a great tool for simplifying the monthly bills providing an immediate payment relief and the long term benefits. However, it is important to note, that the federal loans must be consolidated as one separate group and so must the private debts too. You cannot mixed them.
As to the federal loans, which you can consolidate only once, the interest rate will be fixed during the rest life of the loan. When you can do the consolidation during the grace period, it is the deal with the fortune, which interest rate you will get. You do not have to go through the credit check and there is no application fees
2. The Debt Refinancing.
If in your case you have just graduated and got the work, your credit score may have improved compared your student times. Now when you will do the consolidation, you will refinance the interest rate and the repayment time. This process is the most effective thinking the cost savings.
3. Consolidate During The Grace Period, You Can Reduce The Interest Rate By 0,6 %
When you consolidate during the grace period, within 6 months after the graduation, you can save in the interest rates by 0.6 %. During the times, when the interest rates are historically on a low level, just by renegotiating the interest rate can bring the much needed help.
4. How Much Are The Savings?
The ideal situation would be the one, when the interest rates are historically low. Then by consolidating and refinancing the whole debt package, you can get the maximum saving. To take examples, if your student loan is $ 10.000 and you extend the repayment time from 15 years to 25 years, you can save over $ 230 a year. With the $ 100.000 debt the saving is over $ 2.400 a year without the interest rate changes.
5. Start To Calculate The Benefits From The Present Loans Consolidation.
When you think the student loan consolidation rates, you have to take into account two things: your present loan terms consolidation rate and the future rates after your student loan possible refinancing. It can happen, that only the new interest rate brings the saving you need and there is no need to extend the repayment time.
However, remember that you can consolidate the debts only once. This means, that it may be wise to plan your monthly payments so, that your monthly expenses will be on the lowest possible level. This is a careful plan and will help you, if you will meet sudden changes with the incomes or living costs.

source from taken article http://ezinearticles.com/?Student-Loan-Consolidation---A-Way-to-Save-Money&id=4721778

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Student Loan Myths Debunked

The amount of incorrect information about student loans is incredible. Part of the problem is that the media goes for a headline that will get viewers and it rarely is the whole story. You see it everywhere, some sensationalized headline screaming at you, but when you read the actual article you see that there's little to support the headline. The news media has become all about ratings (read money).
The new student loan changes that were included in the Healthcare Reform Bill is a good example. The reason it was included was to help offset the cost of healthcare. How? By taking the loan guarantees away from lenders (thereby not having to pay all the unpaid student loans) and directly collecting the interest from student loans. They essentially took out the middleman who was guaranteed to not lose money and got all the profits from the interest on these loans.
And due to the interest rates being so low to banks and other lenders (like 1%) and now getting a guaranteed interest of at least 4.5%, that's a lot of money changing hands. The private lenders get even more since their rates are sometimes double the government rates. Student loans are big business and even with a high default rate, it's still a strong area of activity regardless of the economy.
OK, let's get to the biggest myths about student loans now that the government has changed many of the basic rules. I'm not sure how these myths ever got started since the language is very simple and easy to understand in the new bill. And rumors and conjecture never tell the whole story.
Student Loans Will Now Be More Expensive
The biggest changes involved extending and reducing the amount of payments after graduation. The bill reduced the payments from 15% of discretionary income to 10% and loans can be forgiven now at 20 years rather than the 25 years as it was before this bill. So these changes actually made it easier and more affordable during the pay back period.
Available Financial Aid Will Be Reduced
Financial Aid covers many areas from grants, private subsidized scholarships, college or university grants and discounts, and student loans. Due to the less than stellar economy there has been a drop in private grants and related programs but that had nothing to do with any government student loan changes. Student loans have always been the predominate method of student financial aid and are still available just as they were before any changes occurred. You won't know what you might qualify for until you go to your college Financial Aid Office and let them review your specific circumstances.
I Can't Qualify For Financial Aid Due To My Parents Income
Some Financial Aid is based on need and financial status of parents. But most colleges review the whole picture and not just the income levels. Even if the parents make a good income they may have 3 kids in college or even high medical expenses or other factors that limit their ability to pay for college. And many scholarships are based on achievements, not financial status. Private grants and subsidized programs are based on other criteria than financial needs (a good example is if you or your parents work for a company that offers financial aid for college). It's highly recommended that anyone who is attending college go to their Financial Aid Office and let them determine what you qualify for since they are the most credible source.
The bottom line on Financial Aid is that each college may have different programs and resources. And the best way to find out the facts is to go find out at your college's Financial Aid Office. The colleges are the best source for any type of financial aid and will work with you to find any that you qualify for from all possible resources.

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Advantageous Online Personal Loans

Before you apply for a personal loan, you should know how much time the lender will take to approve it and when exactly would it reach your hands. Plus, the amount of money that you wish to borrow in terms of a loan also has a great impact. Like, for instance, if you are borrowing a low amount, then not all institutions will offer you such a loan. There are different criteria set by different lenders in terms of the amount to be given in the form of loans. To know more about such options, you can check the thousands of lenders online. Today, there are many who are opt for applying online for personal loans; you won't just get what you had hoped for but also without waiting too long for it to be credited into your account. Online means is always very comfortable, flexible and easy way to get personal loans. In fact there are a few lenders who wouldn't even bother enquiring as to what purpose you need the loan for. However, if you borrow money from a government based bank or organization, they would ask a million questions and you wouldn't have any option but to state the reason you are getting the loan.
With other banks and lenders, there is not much of a problem in that area. This means that you wouldn't be asked to state any reasons as to why you need the money. But, you would have to mention the basic information about the applicant like the name, age, occupation, sex, monthly income etc. All this is required so that lender is sure of lending money to an individual who is eligible for the kind of money being offered. Plus, the surety of being repaid as per the bank schedule is also there.

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