Monthly Archives: May 2009

5 pointers on college loan consolidation

By college loan consolidation we mean combining many loans such as school loan and college loans together. Consolidating can be a good option, if for no other reason than to simplify ones finances.

Here are five pointers on college loan consolidation are as follows:-

Interest rates-the student can lock the variable rate to a fixed one as such when the interest rates go up he still has to pay interest on flat rates.

For students in school-Consolidating would put a college loan borrower into repayment status, but the student can make payments at a later date until or after graduation by making a deferment request.

Making payment together- the borrower can pool his student debt together so that only one monthly payment is necessary rather than several.

No loss of interest subsidy on subsidized loan-the subsidized and unsubsidized loans are grouped so that the borrower won’t be held responsible for extra interest on subsidized loans.

Repayment options – even if the loans are consolidated the repayment options of various consolidated loans remain open.

Alternatives to filing bankruptcy

Unplanned loans, fall in income etc contribute to the problem of payment of debts.
There are many options left before a person files bankruptcy .A few alternatives to filing bankruptcy are as follows:-

• Selling out old car

• Renting out rooms in our guest house and earn some money for payment of dues

• Selling share equities which we own

• Finding work which can be done after our office hours are over and get paid for it.

• Surrendering insurance policies to get cash for payment of dues

• Selling out our home and staying in a rented place

• Take loan from our family friend or relative on a condition of payment on a future date

• Cash out refinance is also a good option, here the homeowner mortgages his house at a higher value than previous mortgage and uses the extra money to pay out his debt

Finally, the last option which remains is selling the jewelry of the house