Federal student loan consolidation

In the United States both the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP) include consolidation loans that allow students to consolidate Stafford Loans, PLUS Loans, and Federal Perkins Loans into one single debt. This results in reduced monthly repayments and a longer term for the loan. Unlike the other loans, consolidation loans have a fixed interest rate for the life of the loan.

Consolidation loans have longer terms than other loans. Debtors can choose terms of 10–30 years. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans.The fixed interest rate is calculated as the the weighted average of the interest rates of the loans being consolidated, assigning relative weights according to the amounts borrowed, rounded up to the nearest 0.125%, and capped at 8.25%. Some features of the original consolidated loans, such as postgraduation grace periods and special forgiveness circumstances, are not carried over into the consolidation loan, and consolidation loans are not universally suitable for all debtors.

The Federal Loan Consolidation Program was created in 1986. In 1998, the United States Congress changed the interest rate to the aforementioned fixed rate weighted mean, effective February 1, 1999.

In 2005, the Government Accountability Office considered consolidating consolidation loans so that they were exclusively managed through the FDLP. Based on several assumptions about future variations in interest rates, the loan volume, the percentage of defaulters, cost estimates from the United States Department of Education, it concluded that while doing so would incur an additional cost of $46 million, caused by the higher administrative costs of the FDLP compared to the FFELP, this would be offset by a $3,100 million saving comprised in part of avoiding $2,500 million in subsidy costs

Here is time for talking about Refinancing

Refinancing refers to applying for a secured loan intended to replace an existing loan secured by the same assets. The most common consumer refinancing is for a home mortgage.Refinancing may be undertaken to reduce interest costs (by refinancing at a lower rate), to pay off other debts, to reduce one's periodic payment obligations (sometimes by taking a longer-term loan), to reduce risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to liquidate some or all of the equity that has accumulated in real property during the tenure of ownership.

In essence, refinancing a mortgage or other type of loan can lower the monthly payments owed on the loan either by changing the loan to a lower interest rate, or by extending the period of loan, so as to spread the re-payment out over a long period of time. The money saved can be used to pay down the principal of the loan, thus further reducing payments. Alternately, refinancing can be used to transform available equity in one's house into ready cash, available for other purposes or expenses.

Another use of refinancing is to reduce the risk associated with an existing loan. Interest rates on adjustable-rate loans and mortgages shift up and down based on the movements of the various prime rates used to calculate them.

You can have a Risk.
Certain types of loans contain penalty clauses triggered by an early payment of the loan, either in its entirety or a specified portion. In addition, there are also closing and transaction fees typically associated with refinancing a loan or mortgage. In some cases, these fees may outweigh any savings generated through refinancing the loan itself. Typically, one should only consider refinancing if one stands to save a substantial amount of money from doing so, either in the short or long-term, or if there is a need to extend the loan in order to pay for unexpected costs such as medical expenses.

Points.....

Refinancing lenders often require an upfront payment of a certain percentage of the total loan amount as part of the process of refinancing debt. Typically, this amount is expressed in "points" (also sometimes called "premiums", with each "point" being equivalent to 1% of the total loan amount. Therefore, if the refinance option selected involves paying three points, then the borrower will need to pay 3% of the total loan amount upfront. Most refinancing lenders offer a variety of combinations points and interest rates. Paying more points typically allows one to get a lower interest rate than one would be capable of getting if one paid fewer or no points. Alternately, some lenders will offer to finance parts of the loan themselves, thus generating so-called "Negative points" (also called discounts).

The decision of whether or not to pay points, and how many points to pay, should be taken in consideration of the fact that with points, one tends to trade a higher upfront cost in exchange for a lower monthly premium later on. Points can be paid out of the cash saved by refinancing the loan in the first place.

Use Your Cards with Care to Protect Credit Rating

Use Your Cards with Care to Protect Credit Rating

Using credit wisely means:


* Paying your bills promptly

* Keeping a list of all your account numbers in case cards are lost or stolen

* Controlling your spending

* Paying more than the minimum amount due

* Keeping copies of your receipts and checking them against your monthly bill

* Guarding against card fraud and identity theft by cutting up your old cards and shredding statements and unwanted credit card offers

British Airways Visa® Signature Card

# 15,000 Bonus BA Miles after First Purchase

# $20 off Any British Airways Ticket Purchase Made Using the Card at www.britishairways.com/get20

# 2 BA Miles for Every $1 Spent on British Airways Purchases

# 1 BA Mile for Every $1 Spent on All Other Purchases

# No Limit To the BA Miles

# No pre-set spending limit

# 24-hour concierge service

# 100% protection against unauthorized use — even online

# Visa Signature privileges

Chase Cash Plus® Rewards Visa® Card

The Chase Cash Plus® Rewards Visa® Card, issued by Chase, is designed for those with very good credit who plan to take advantage of the cash reward program.

Through the reward program, cardholders earn five points for every dollar spent at grocery stores, gas stations, and drug stores, as well as one point for every $1 spent on all other purchases. After earning 5,000 points, cardholders can choose between a $50 check or a $50 gift certificate to leading merchants such as The Home Depot®, Best Buy, Pizza Hut®, and BLOCKBUSTER®. There is a maximum of 30,000 points that may be earned in one year, and points expire in three years.

The card has a reasonably low interest rate for purchases (for a reward card), no annual fee, and an attractive 0% APR introductory rate for up to twelve months, which can be applied toward purchases and balance transfers.

Finance charges applied use the "Two-Cycles Average Daily Balance" method, which is a more costly method in applying finance charges for those who occasionally carry a balance as compared to the "Average Daily Balance" method used by most card issuers.

The card provides platinum cardholder benefits including up to $500,000 in travel accident insurance, auto rental insurance, and various travel and emergency assistance services.

Therefore, those who plan on taking advantage of the reward program and plan to pay in full each month after the introductory rate expires (to avoid costly finance charges) will benefit most from what the Chase Cash Plus® Rewards Visa® Card has to offer.

Most Attractive Feature(s): No annual fee; 0% APR intro rate on purchases and balance transfers for up to twelve months; up to 5% cash back reward.
Least Attractive Feature(s): Uses "Two-Cycles Average Daily Balance" method when determining finance charges; higher APR for less qualifying applicants.

The Citi® Professional Card, issued by Citibank

The Citi® Professional Card, issued by Citibank, is designed for those with average credit who are looking to maintain and manage all of their personal and business related expenses with a credit card.



The card offers access to a free rewards program. Through the reward program, the cardholder receives one point for every dollar spent on general purchases and three points for every dollar spent at restaurants, gas stations, certain office supply merchants, and on auto rentals. Points can be redeemed for a variety of merchandise, air travel, and gift certificates. There is a yearly limit of 100,000 points, and points expire in three years.

Aside from the reward program, cardholders can expect access to a variety of platinum benefits that include up to $1,000,000 in travel accident insurance, auto rental insurance, and various travel and emergency assistance services.

The card offers cardholders the benefit of the Citi® Professional Card's online expense reporting tool, which allows cardholders to categorize card activity and generate as many individual, easy-to-read expense reports as they choose.

The card has no annual fee, an attractive 0% introductory rate for balance transfers for the first nine months of membership, and a reasonable interest rate for purchases and balance transfers. However, there is a minimum cap for cash advances; so no matter how low the Prime Rate falls (the APR is tied to the Prime Rate), the interest rate will not go below the minimum cap.