You have found your self on the brink of drowning in debt, the waves of debt are lapping at your credit status on the brink of disaster. Ok, enough of the drama, I'm sure you get the picture …. so what are you options and what is the best cause of action? Or is it a trap.
A Bad Credit Student Loan can be a real trap – especially when looking at the private loans or other wise know as alternative loans. Firstly lets look at Student loan consolidation
A student who currently has loans being either a single student loan or a number of student loans have a range of different options to reduce repayments and debt and keep a broad birth from ending up with a Bad Loan. Interest rates have fallen, now loans can be consolidated or even in some cases refinanced. When you're considering refinancing consolidating, you need to compare interest rates before you consolidate.
First, lets look at Eligibility to avoid a Bad Credit.
You will find you are eligible to consolidate when:
– You're no longer enrolled in school (defined as being governed less than half time)
– You must be within the "grace period" of the loan or you must be actively repaying your loan.
– Most consolidation companies require a minimum loan amount, $ 10,000 is typical.
The difference between federal and private loans
Federal loans have advantages over private loans. For example, interest on the loan is tax deductible, the loan can sometimes be forgiven for certain types of service, and you can sometimes defer payments on the federal loan if you go back to school.
Private loans do not have these advantages – they are really just loans either secured or unsecured, and you have to pay them back just like any other loan.
It's essential you do not consolidate the federal and private loans together. Consolidate all of your federal loans as first step. Then separately consolidate your private loans. If you wanted to mix the public and private loans, then you would have to take out one single private loan that actually loses all the benefits of the federal student loans. Keep government student loan consolidation separate from private student loan consolidation.
A Private student loan which is unsecured and based on credit. The figures for opting for loans are only increasing as each year passes by. You will probably need to take out several scholarships, grants and loans in order to pay for your tuition, books and your living expenses.
Credit counseling is available in many student loan providers. While these companies are for-profit businesses. If you are denied a loan they will work with you to repair your credit.