A tip: shop around and compare offers when seeking a private college loan or college credit card. Many offers for both financial products will likely come to you in the mail, so thos proned to impulse buys should not apply for the first loan or credit offer they receive. Take your time, involve the ‘rents, and carefully select the right loan or credit card which fits your own needs the best. Another tip: having a credit worthy co-signer can actually reduce your interest rates and help save money.

Debt Consolidation Loans

A debt consolidation loan is similar to any other type of personal loan and you must qualify for the loan. Once you know you qualify for a consolidation loans you can use them as an option for paying off debt without the stress of several different payments. One benefit to obtaining debt consolidations loan is the possibility of a lower interest rate. A lower interest rate means more of your payment goes to the actual debt itself and can translate to paying off your debt more quickly.

Credit Card Consolidation Loans

Many people who find themselves in a bind trying to pay off credit card debt seek a credit card consolidation loan to ease the financial stress and enable them to continue paying their credit card bills. Credit card consolidation loans are often secured through an institution certified to work on your behalf to combine your card debt, get credit card companies to lower or remove interest charges for a specified amount of time, and create a credit card payment plan that helps you pay off your debt within a predetermined time-frame. Many of these companies require you to give up your credit cards as part of the consolidation process.

Student Loan Consolidation

Once you graduate college and begin repaying your student loans, the responsibility of repayment can be overwhelming, especially if you’re still looking for a job. The type of student loan consolidation you qualify for is dependent upon the type of student loans you had.

* Federal Direct: During loan deferment or payment grace period, you can apply for a Federal Direct loan to help consolidate federal student loans only. Private and state-based student loans don’t qualify for this.
* Private Student Loans Consolidation: When you’ve obtained your student loans through a bank or lending institution you must also seek to consolidate your student loans through private funding. Private and federal direct student loans cannot be combined during consolidation.

When considering debt or loan consolidation, do your homework to ensure you make the best choice for you and your financial future.

The amount of money given through a Stafford Loan changes with each year. A first year dependent student can qualify for up to $5500, and then the amount increases by $1000 for each of the next school years with a maximum loan amount of $7500 per year.

On the other hand, an independent student– one who is not supported by parents or guardians –can qualify for an amount between $9500 and $12,500 per year as an undergraduate student and $20,500 per year as a graduate student.

There are many benefits to applying for a federally-awarded Stafford loan, one of which is a guaranteed fixed interest rate. Since your interest rate is locked in at the time of the loan application, you don’t have to worry about fluctuating market rates. A lower interest rate also contributes toward a more affordable repayment plan once you complete your higher education and since the Stafford loan is not based upon credit or credit history, it functions as a viable student aid option for those who need to supplement savings, scholarships and grants in order to pay for a college education.

Additional Stafford Loan Resources:

http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp

http://www.finaid.org/loans/studentloan.phtml