Monday, July 6, 2009

Student Loan Secrets

Student Loan Secrets: Improve Your Credit Score And Pay Off Your
Student Loans
By National Association Of Responsible Lending And Investment


The single biggest factor that impacts the amount of interest
you pay is your credit score. People with credit scores over 750
pay a lot less interest than people with scores of lower than
650. If you can increase your credit score by 100 points, you
can pay less interest, pay more principle and get out of debt
more quickly. Credit score is a huge factor in who gets richer
and who gets poorer in this country.


The little known secret about credit scores.


Those student loans you needed to get through college can have
a huge impact on your score. That small monthly payment could be
crippling your entire financial health through increased
interest payments on all your other bills.


When you have any type of loan, it shows the maximum credit,
the outstanding balance and your payment history. The credit
score takes into consideration the total amount of outstanding
balances. The more you owe, the lower the score.


You’re thinking simple, right? Newsflash, it isn’t.


Student loans almost always report to your credit report in
triplicate. So, for your credit score, even though you may owe
only $15,000, it computes your score as if you owed $45,000!
This can have a huge impact on the amount of interest you pay.


Even worse, yet in Sallie Mae’s eyes, your loan could look like
7 loans. Then multiply those 7 by 3 and you could have “21
Student Loans” on your credit report. This can destroy your
credit score and most people never realize it. They do their
best to work hard and pay their bills on time. However, they
don’t get the credit score they deserve because the computers
foul up their student loan balances.


Only a few professionals understand how this works.


And most don’t care to understand. They just buy your credit
score, slap the interest rate on your loan and move on to the
next person. You have to work with a professional who
understands the inner workings of credit score computers. Only
they can help you pay off those student loans and get you the
interest rates you truly deserve.


About the Author: Individuals everywhere, looking to get out of
debt and begin investing can turn to the debt aide organization
National Association of Responsible Lending and Investment at
http://www.NARCLI.org You may reach debt relief and investment
experts via email to Question@NARCLI.org


Source: http://www.isnare.com


Permanent Link: http://www.isnare.com/?aid=62281&ca=Finances

Posted by bestwish at 6:44 PM

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Student Loan Rates - Tips For Student Loans

By Joel Davis
Getting a college education for many people sees the need for astudent loan. Finding the best student loan rate of interestfrom a financial institution is an important consideration thatmay save you money when the time comes for student loanrepayment.
Generally a student loan is not required to repaid until thestudent graduates and has finished his or her schooling. It’svery easy during the educational period to be unconcerned abouta loan and not have some sort of repayment plan in mind.
The student loan rates will then be an important factor as thegraduate will be starting a new job, possibly finding newaccommodation, and have travel and living costs to cover. Everycent will count in the beginning and even a difference of 1% inthe student loan repayment will have an effect on livingstandards.
Read the contract fine print;
Some lenders charge fees to set up a student loan that canincrease the cost of the loan. Often a lender will offer a lowinterest rate that seems most competitive. However these lowrates are often off set or can actually cost more due to thestudent loan fees that are charged.
On the flip side lenders that don’t charge the fees will rollover the costs into the interest rate. As a general rule threeto four percent in fees is about the same as a one percenthigher interest rate.
Check to see if the student loan interest rate is fixed orvariable, a fixed loan may be more expensive than a variablerate at the time of application but if the variable rates are torise in the future the fixed loan would have been the bestoption.
This is something where the student will have to consider theeconomy and seek out advice on the direction of future interestrates. Use a student loan calculator to calculate future loaninterest rates. This can give you a general idea of what theloan will cost you per month but remember it is only anestimate.
At the time of writing a Stafford Federal loan has a 6.80%fixed student loan rate. Compared to a student loan rate with anaverage private loan rate of 8.25%, you’ll quickly see why manystudents turn to the Federal government for the best loan rates.
Find out when the interest begins accruing. Typically, thestudent loan rates won't take affect until six weeks until afteryou graduate. That means you have time to save up in order topay your loans back. But you should make sure of this so thatyou're not caught by surprise when that first bill becomes due.
It’s always a smart thing to shop around for the best studentloan rates available to you; you may get lucky and find even abetter loan than a Stafford loan has to offer. Taking thesesteps will give you peace of mind and be stress free, allowingyou to focus on your main goal, completing your studies andgetting the education to go out and get that great job orbusiness you deserve.
About the Author: Joel Davis is the webmaster athttp://www.studentloan-blog.com for making informed choices andstudent loans easy to understand.
Source: http://www.isnare.com
Permanent Link: http://www.isnare.com/?aid=231612&ca=Finances