Why should I choose a reputable company to consolidate my student loans?
We want to take the time today to go over the different pitfalls that you can encounter when consolidating you student loans on your own, but first we have to start explaining the consolidation process for those that really don’t know where it starts.
“A federal student loan consolidation is the process of grouping all of your student loans into one single account with one single and lower monthly payment”.
Notice that in the definition we stated one “account” instead of one “loan”. There is a misconception that you will have only one loan because that is the definition of consolidation. The reality is that some loan types will be merged together but others won’t. For instance, subsidized loans and unsubsidized loans will not be grouped together on the same loan. Therefore, if you consolidate your student loans you may have multiple loans, but you will have one account with one payment. Continue Reading
Are Smart Option Student Loans and Signature Loans eligible for Federal Student Loan Consolidation?
The answer is NO. The Sallie Mae Smart Option Student Loans and Signature Loans are not eligible for the Direct Student Loan Consolidation Program because these loans are Private.
Do you have a Smart Option Student Loan or a Signature Student Loan? If your answer is “Yes”, you should continue reading this article to understand more about these loans: Continue Reading
How Student Loan Debt Affects The Housing Recovery
Now that the financial crisis has slowly started to fade away and the real estate market is back on track, the mortgage rates and the home prices are extremely low – this is why many young couples and students are looking forward to buying a house of their own. However, many were unable to do so due to student loans – add a temporary job to that and buying a home is an impossible mission.
Those who have taken a student loan and are in debt may not be eligible for a mortgage, as the student loan debt is getting in the way. First-time buyers have a difficult time purchasing a home if they are weighed down by student loans, especially those whose debt tops $100,000 or even more. If several years ago one out of two Americans was a first-time buyer, now one out of three people is buying a home for the first time, during the housing recovery – this is caused mainly due to the burden of student loan debt who forces people to adapt and to either stick to renting a home, or to moving with their parents or roommates.
Over the past decades, the number of student loans has tripled and this aspect has a direct impact on the housing recovery. If we calculate the total student loan debt, the sum is above $1 trillion. In some cases, the student debt prevents people from getting an expensive large home and forces them to reside to the lower version of the house, while in other cases people may not be eligible for a mortgage at all. Continue Reading