Student Loan Consolidation

I’ve been reading up on the student loan conundrum in America lately and thought I would take a quick moment to share four great resources that I’ve come across.
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There is no denying that attending college is a great way to pave the way for your future. Aside from the education you receive and the benefit of (usually) having an easier time securing a job than without a diploma, you gain great social experiences and make lifelong friends.

On the flip-side though, it’s very easy to accumulate debt along the way. Depending on the school, curriculum and other factors, this can put you in a major financial bind after graduation. Here are some ways to pay off student loans faster so you can live a financially sound life.

Pay During the Grace Period

Many student loans offer a grace period where you aren’t required to pay until six months after graduation. This is designed to allow you time to find a job and get financially stable before payments begin.

If possible, you should go ahead and pay at least a little something during this time because you can lower your principal and have an edge once the grace period is over. This also get’s you in the habit of making those payments before there are penalties for not doing so.

Not to mention, you are creating great financial habits very early on and making decisions such as this now will lead to continued wise decisions in the future.

Look into Student Loan Forgiveness

Depending on your profession, you may qualify for student loan forgiveness. If you are a full time public servant, in fields such as education, community service (police, firefighters), the non-profit sector or even many church positions, you may be eligible to have a portion of your student loan debt forgiven after you have made a certain number of payments. This is a tremendous benefit to those who are in these positions, as it can save you tens of thousands of dollars.

Student Loan Consolidation

This strategy involves combining two or more loans into one for a more simplistic repayment structure. The benefits of this option are that it can often reduce your interest rate and it streamlines the payment process so you don’t have to remember to write checks for multiple loans each month. There are different programs available for different types of loans. Our Christian debt relief company can provide further insight into student loan consolidation and help you decide if it’s right for you.

Here is a bit more information on a Federal Student Loan Consolidation.

Get a Side Job

Another effective way to quickly get out of debt is to earn some extra income on the side. It might be a part-time gig, doing odd jobs or even starting a small business. This doesn’t need to consume your life, but putting in some additional hours on top of your regular job can mean years of difference in eliminating student debt. Paying extra usually goes right toward principal. Reducing your principal balance will also minimize interest expenses, which means less overall money to pay.

Put God First

Putting God first and being charitable should be the basis for any financial strategy. As we see written in Matthew 6:33, “But seek first his kingdom and his righteousness, and all these things will be given to you as well.”

There is a lot of hype about student loans these days. After all, there is currently over 1.1 trillion dollars of student loan debt in America. As a result, there have been plenty of advertisements and promotions about consolidating your Federal student loan debts. Today, we’ll explore how FaithWorks can support you in exploring Christian student loan consolidation!

Debt consolidation is the act of taking multiple loans from varying financial institutions and combining them into one single loan. FaithWorks helps people find debt consolidation loans to consolidate high-interest unsecured debt like credit cards and personal loans. The same concept works for student loans, too.

The debt consolidation process issues a new loan with a single, fixed interest rate. Ideally, consolidating debt should give you a lower monthly payment, lower interest rates, and simplicity in the form of one single monthly payment. When done right, it can do wonders for your cashflow and your budget.

For students at colleges and universities all around the country, a federal student loan consolidation can be a great way to relieve some of the burden that comes with paying for higher education. However, there are a few very important factors that you should consider to help make sure that debt consolidation is right for you in the first place.

Your Current Monthly Payment

For starters, take a look at your current student loans and see if your current monthly payments are actually manageable. Most students don’t have to begin repaying their loans until they have either dropped below full-time status or have graduated from their university. If you have fair interest rates and you are not having a difficult time keeping up with your loan payments each month, you may not have much to gain from a consolidation in the first place.

The Number of Loans You Have

One of the main benefits of loan consolidation is that multiple bills suddenly become a single bill due on the same date each month. However, if you only have one or two loans or are having no problems keeping track of your current commitments, student loan consolidation may have a lot to offer you. The bigger benefit is experienced by people who have four or more high-interest student loans that they are making payments on each month.

Current Interest Rates

Another factor that you’re going to want to consider is the interest rate that is attached to each of your current loans. People with high or variable interest rates stand to benefit the most from a federal loan consolidation. If you have reasonable fixed interest rates on one or more of your loans, you may actually lock yourself into a higher rate if you end up consolidating. If you find that your interest rates average over six or 7%, a consolidation may be worth taking a look at.

The Long Haul

You will have to consider the general basis of a consolidation- restructuring your term. If you only have a few payments left it may not make any sense for you to consolidate. If you have quite a long repayment ahead of you though, and would benefit from that lower interest rate and monthly payment, you may want to explore the consolidation or other student loan resources.

Christian Student Loan Consolidation

You may have already asked yourself by now, “What’s the difference between a Christian student loan consolidation and a regular student loan consolidation?”. The simple difference is that you will be working with somebody with like-minded values who will go the extra mile to help you solve your debt situation and present you with honest information. In fact, anyone can consolidate their federal student loans on their own directly through the Department of Education. FaithWorks is here to help you decide if student loan consolidation is right for you.

A student loan consolidation can often prove very effective in simplifying your finances and help you get on sound financial footing. If you would like more information please complete the form on the right hand side to request a call from a FaithWorks Financial Christian Debt Advisor today!

Massive student loan debt seems like a fate etched in stone for college graduates everywhere. It can take several years, even with a high-paying job, to eliminate student loan debt. Some post-graduates find themselves wondering if the cost of their education was even worth the effort. The good news is making slow and steady repayments is not the only solution. Many people do not realize that volunteering can also erase student loan debt.

Many organizations will eliminate a portion of student loan debt to college graduates who volunteer their time and talents for a specified period of time. The spirit of volunteering aligns with basic Christian debt management principles. Serving others to erase debt shows an outward commitment to imitate the deeds of Christ. This is a great way to help others and do good in our world, while getting some assistance with those student loan obligations.

The following organizations offer student loan debt relief through volunteer opportunities. Please note that their programs may change overtime, so we cannot guarantee accuracy of the following statements. We have provided links to each though, so feel free to review the organizations direct website for more information.

Peace Corps

As a volunteer program run by the U.S. Government, the Peace Corps sends volunteers to more than 70 nations. Volunteers work worldwide to improve education, agriculture, business and reduce hunger and poverty. Peace Corps volunteers are trained for three months and serve for a minimum of 24 months. The Peace Corps will repay up to 70 percent of qualifying student loans, depending on your length of service as a volunteer.

National Guard

Serving in the armed forces can also reduce the burden felt from student loan debt. College graduates may be eligible to receive up to $10,000 in student loan repayment in the Army National Guard. The Air National Guard has a similar student loan reimbursement program in place for college graduates. These programs can vary depending on the terms of recruitment, so it is a good idea to check with your local National Guard recruitment offices for more information.

AmeriCorps VISTA

A domestic version of the Peace Corps, AmeriCorps VISTA is dedicated to assisting nonprofit and faith-based organizations in helping low income individuals and communities eradicate hunger, homelessness, poverty and illiteracy. At the time of this writing, for a full year of service volunteers receive $4,725 to be applied toward student loans. In return, volunteers are expected to commit to 1,700 hours of community service.

Medical service

Added medical or nursing school debt can make repaying student loans more difficult. The good news is multiple options are available for new doctors and nurse to get out from under this burden. Many programs offer debt repayment for practicing in places lacking adequate medical care. Some agencies, such as the U.S. National Institute of Health, will repay up to $35,000 on student loans for doctors and nurses they employ.

If dedicating a long period of time to volunteer work is not an option but you are still overwhelmed with student loan debt, a Federal Student Loan Consolidation through FaithWorks Financial may provide you with the student loan relief you are in need of. Call us today at 877-232-5109 or fill out the short form to the right for a FREE consultation to help you find your best option.

Regardless if you are a recent college graduate looking for work or you just moved into a dorm, it is important to for Christian’s to maintain perspective when it comes to debt management and Christian personal finance so you can honor God.

Let’s face it: student loans are a popular choice for students and families across America due to the rising cost of college tuition. Many Christians are anxious about obtaining student loans in order to pursue their dream of going to college, especially if they have to get more than one loan. You also may have concerns about getting a student loan if you think debt is frowned on or prohibited by the Bible.

At first glance, many Bible passages seem to condemn taking out loans. “The wicked borrow and do not repay, but the righteous give generously.” Psalm 37:21 is a popular verse that causes many to believe that all loans are wrong. Upon taking a further look at the verse it focuses on how important it is to honor your commitments and make timely payments when you owe money.

Another popular verse used to discourage getting into debt is the verse: “Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honor, then honor. Let no debt remain outstanding, except the continuing debt to love one another, for whoever loves others has fulfilled the law.” Romans 13:7-8. In this letter to the Romans, Paul is trying to promote the idea that we continually “owe” love to everyone.

There are many Bible verses that discuss the responsibility that comes with borrowing money, and that is what is important to keep the focus on. In todays society it is absolutely possible to live an entirely debt free life, though not without a great deal of prayerful diligence.

A huge population of students entering college are not in that fortunate situation. In many instances, student loans for Christians may be the only option for you to get a higher education if scholarships, grants, or work study opportunities are not available at your university.

Luckily, if you have already obtained your loans and are feeling pressure due to the monthly expense, a federal student loan consolidation can help lower your interest rates. Consolidated loans are a combination of many loans into a single one from one lender, ideally with a reduced interest rate. Sometimes it makes sense to even just consolidate one loan in order to reduce your student loan interest rate.

If you still have questions about how to consolidate your student loans, FaithWorks Financial can provide you with information and services that can help you manage your debt. Call us today at 877-232-5109 or fill out the short form to the right for a FREE consultation so we can help you find the best option for your situation.