If you are a current or former student with school loans, you have probably been bombarded with mailed and online solicitations to consolidate your debt. The loan application process can seem overwhelming, particularly if you have more than a couple of loans issued from a number of lenders. However, it is generally simple and straightforward if you are prepared. Here is a brief overview of what you can expect when you decide to consolidate your student loans.

First, you will need to choose a lender. There are many to choose from, but, in general, it’s smart to stick to a well-established financial institution. These lenders will have a variety of payment plans and discounts, and they will be less likely to sell your loan to another lender in the future. There should never be a charge or fee for consolidating student loans. As well, a lender should not need to check your credit because Federal student loans are guaranteed by the U.S. government.

Next, you will need to fill out an application. Remember to gather all information on existing loans prior to filling out your application. Also, you will need to supply personal references. Before you sign your name on the application, make sure that you clearly understand the terms of the new loan. Ask about incentives and discounts that can help reduce your payment. Many lenders have downloadable forms and online calculators to determine the amount you will pay with your new loan.

Once you have submitted your completed application, the lender will send each of your loan holders a Loan Verification Certificate (LVC) to verify the amount owed on each of your Federal student loans. You can expect that your existing lenders will take up to 30 days to return the LVCs. Once these certificates are processed, the interest rate will be calculated and a disclosure statement is prepared. Checks will be issued to your lenders to pay off your loans, and your new consolidated loan will be issued.

This entire process can take between 30 to 180 days to complete, and if information is missing from your application, it can take even longer. Most lenders have customer service representatives who will gladly keep you updated on the status of your loan application. Remember to continue to pay on your existing loans while your application is being processed. You will be financially responsible for these loans until the new lender has paid off them in full.

Finally, keep in mind that interest rates on student loans are adjusted annually every July 1st. This year, rates will be increasing 2.1 percent. You can be assured of the lower rate if you submit a completed application early. Don’t wait until the end of June to start the process.

While consolidating student loans can be a time consuming task, with a little advanced preparation and research you can complete your application with minimal effort. And, once your new loan is processed, you will most certainly be thrilled with your lower payments.

Mike OBrien offers advice and information about student loan consolidation This is a quality web site with a choice of student loan consolidation and general debt consolidation information and the best way to deal with it.

http://wwwloanconsolidation.com

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It won’t be easy, and you can bet that your search to find someone willing to offer you a bad credit student loan will take some doing, but with determination, you’re likely to find someone willing to take a chance on you and fund your tuition expenses for another year or two.
However, be advised that if you already have accumulated bad credit, you’re most likely going to only find loans that come with high interest rates attached. The good news is that you won’t have to start paying back that student loan until you’re finished with school, so you can start planning early to repay it. One of the mistakes most students make is to ignore the fact that sooner or later, they’re going to have to start paying back the hundreds, thousands, and sometimes, hundreds of thousands of dollars of student loans that have accrued over the course of college and university studies. Most students don’t even consider those loans until that first billing statement comes, sometimes weeks or several months after you’ve received that hard-earned diploma.

If you already have a bad credit history, it will be in your best interest to start putting money away during the course […]

Full Article At: KnowHow-Now.com Articles

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Many people need to take out student loans in order to further their education, with the promise of repayment within a certain time frame after getting your degree. This puts a financial burden on graduates who are just starting out in life, and just beginning their careers. Student loan consolidation is now available, to help meet take command of that debt. The following paragraphs will describe what this is, and provide advice on seeking additional information on the subject.

When you consolidate you are generally given a longer period of time to repay than you were given with the unconsolidated debt. The time period can be up to 30 years. This means that your payment will often be lower than the total payments you would be making without consolidation. You will often have to pay more interest, though, because the length of the loan is longer. But the interest rate is generally a fixed rate, meaning it will never change throughout the entire duration of you loan. This is a huge advantage, because most are carry a variable fixed rate that can change at any given time.

Many resources are available to help you find more information regarding the subject including:

· many financial aid offices of learning institutions
· many lending institutions
· via the world wide web

When searching for more information it could also prove to be very helpful to contact the Department of Education (DOE). The DOE commonly offers numerous helpful resources on the subject. If you have any questions regarding student loan consolidation, the DEO can most often help you obtain the answers you need.

EASI, or Easy Access For Students and Institutions, is another place you can seek answers to your questions. Their website is located at www.rit.edu/~easi can be very helpful in finding the answers you need about repayment of your debt, even if you do not qualify for student loan consolidation due to default on your original loans.

Consolidation has many clear benefits, but before you obligate yourself by signing your name on the dotted line, you should do your research and obtain all the information you can find. In doing so, you will enable yourself to find the best solution available.

Know Your Credit Score

If your credit score is good, you should not have any problems getting a great rate. If your rating is over 660, you will automatically qualify for the best rates, and you do not have to research any more. But if your rating is under 600, you may want to evaluate ways to raise it before seeking student loan consolidation. Your score is a main factor in determining the type of interest rate you may receive from the lender. If you have good credit, they can believe you will pay back the loan without default. Thus, they will often offer you a lower interest rate. But if your credit is not good, they will give you a higher interest rate to help insure they will receive repayment. If it is very poor, you may not even qualify for student loan consolidation.

There are several ways to obtain a copy of your credit report including:

· online requests
· written requests
· by requesting in person

Knowing your credit score is the first step in gaining student loan consolidation information. Knowledge is power. The more knowledge you have on the subject, the better chance you will have at obtaining the best rates from lenders. Knowing your score can also help you to rid your credit report of reports that should not be there, as well as aid in the prevention of identity theft.

Obtaining Information From the Internet

With the world wide web gaining in popularity and growing, it is a wonderful tool in helping obtain the best interest rates. Educating yourself on the subject has never been easier. By utilizing any search engine, you can generate vast amounts of information with just a few clicks of the mouse. There are many tools available online, to assist you in finding the best interest rates available. These tools include:

· free credit check links
· student loan consolidation calculators
· interest rate estimators

Knowledge is the key in finding the best rates available. The more knowledge you have on the subject, as well as knowing your credit scores, the better your chances of getting a good interest rate.

Copyright 2006 - Ivar Rudi. Ivar suggests you find great market for less by shopping online today. For more loan information and resources check out: http://www.consolidate-student-loan-guide.org

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