Choosing A Lender For Your Federal Student Loan Consolidation
|
There are many lenders competing to meet your federal student loan consolidation needs, all with different terms and benefits. Which one is right for you? There are a few things you should know before you sign up for any federal student loan consolidation.
Federal Student Loan Consolidation Basics
The fixed interest rate for a consolidation loan is determined by a federally mandated weighted average calculation that every lender must use when determining the interest rate for federal consolidation loans. In other words, the fixed interest rate should be the same no matter who you speak to. The term of your loan is also determined by the federal government based solely on your loan balance. Your base interest rate, length of loan and deferral benefits will be the same no matter who you call. So why choose one lender over another? There are two main points you should consider when comparing lenders repayment incentives and customer service.
Choosing A Lender For Your Federal Student Loan Consolidation
Repayment incentives - Your base interest rate is determined by the government but a lender can offer you repayment incentives. Some common repayment incentives are a percentage off of your interest rate for an automatic deduction from a checking or savings account, an interest rate percentage reduction after a certain number of on time payments, or reduction or repayment of origination fees. Some companies offer cash up front rebates for consolidation which can seem like a good idea but you will almost always come out ahead in the long run with an interest rate reduction. The lender should be able to provide you with an amortized repayment schedule showing you exactly what the loan will cost you.
Customer service - Can the lender provide all the types of loans you are interested in and handle your post-graduation consolidation? How hard is it to get an actual person on the phone? Are the customer service personnel friendly and knowledgeable? Do they have a website with 24 hour access to your account? Can you apply online? Do they have flexible repayment options? These are all important questions when choosing a lender. No amount of incentives are worth it if you cannot deal with the company. Be sure to choose a lender who will treat you as a valued customer.
|
What paperwork do you need to claim the lifetime learning credit for a student loan?
Are you supposed to receive something from Sallie Mae to use your your taxes regarding your student loan? If not, how do you file for the credit?
Do you get a tax credit if your a full time student?
My husband works full time, has a wife and 2 kids, and is a full time student. Will he get a tax credit for being a full time student?
student hope credit tax question?
I was wondering how many years are you able to file for the student hope tax credit when it comes to your taxes.
the first 2 years of school only
I don’t think so but it would be nice. Let me know if you do!
You’ll get a form 1098-T from your school showing the eligible amounts of tuition and fees for the year. The info goes onto form 8863 that you file with your tax return.