Many students are talking about college student loan consolidation currently. But how to make your process easier to obtain the best rate for your student loan consolidation?

Step 1 – Write down each of interest rates

Gather all the detailed information about all your different student debts. If you have both federal government loan and private loan, separate them first and put the priority on federal student loans. Write down the amount of each of your student loans together with the name of lenders and the current loan account numbers. Include the outstanding balances as well. Then write down each of the interest rates beside the loan amount.

Step 2 – Get your calculator rate

Start estimating the loan consolidation rate based on the weighted average of all interest rates. You may try to calculate it on your own. If you totally don't have any idea about the formula, you can get the rates easily online. Many lenders offer online loan calculator for public. You can get an estimate figure of your monthly payment, new interest rate and the terms of your new loan easily through internet.

Step 3 – Find the bank

Where can you "place" all your loans? It is wise for you to start with banks and some financial institutions you know. Call or visit the banks personally to consult the loan officers in order to get more details about the interest rates and repayment period.

Step 4 - Comparison

After doing your market research, start comparing all the packages offered. The comparisons should be based on the interest rates, repayment period, benefits as well as additional terms on the policies. Analyze all the related items carefully. Interest rates will be the key factor.

Step 5 – Wait for approval

Once you have made up your mind, submit the application form to the bank you prefer and wait for approval. The last step will be signing the terms and promissory note.

IMPORTANT!!!

Keep in mind that current regulation stipulates that you can only consolidate your study loans once. Make sure you are extra careful in selecting the consolidation rate so that you can save the most in the long run.

One of the most important thing in searching scholarship is to do it often. Scholarships change and new ones are added frequently. "What if" your search for example, a student may have an SAT score of 1100 right now, but "what if" he/she retested and scored higher?

Also, don't limit yourself to one academic major. Select multiple majors to see what's available. Or better yet, select "No Academic Major" to see the scholarships and financial aid awards available to students regardless of their field of study. There is a huge reason for it: some scholarship awards are based simply upon the student's desire to attend college, with no consideration for the student 's intended major.

And, don’t forget to visit your school's guidance office, the public library and college Financial Aid Offices to look for small, local awards that aren 't posted on search engines or in books on scholarships.

Do you need to get money to help you through college, but you know you have no credit or bad credit? It's very possible to get student loans for students with bad credit. But if you have bad credit, your choices of student loan lender are going to be limited.

If you have poor credit, your best source of loan funding will be from the federal government. The government has several loan programs that will grant students the funding they need. These programs are the Stafford loan program, Perkins loan program, and the Pell Grant.

Get all the information you need for Financial Aid and Private Student Loans.

If you are looking for loans for bad credit students, your best bet is to seek out federal student loan aid. If you can't secure federal aid, then you will have to look for private lenders that offer student loans with no credit.

There are few ways to get private student loans for bad credit if you know what to do. Before you go looking for private student loans for bad credit you need to talk to your financial aid department to find out if you qualify for federal student loans and the Pell grant. These are government backed and have absolutely no credit requirement. The Pell grant is more free money you never have to pay back. If you have maxed these out and cannot get anymore you can look for private student loans for bad credit.

The only way you will get a private loan for college when you have bad credit is with a good credit co signer. The good news is there will not be an income requirement so this could be a retired family member or anybody at all as long as they have good credit and are over the age of 21. This is not a hard loan to get once you have a good credit co signer, but that is the only way to go.

Yesterday, Citigroup, one of the largest private lenders, said it would stop lending at some schools and end its federal loan consolidations.

James Edwards thought he was set when he deposited a $16,000 Secured student-loan check to pay for summer classes and the fall semester. But when he started to pay bills for classes, rent, and other expenses last week, his checks bounced.

He was one of 500 students left in the lurch with the April 7 bankruptcy filing of The Education Resou ces Institute Inc., a Boston nonprofit that guarantees student loans. And his ordeal is only the latest example of chaos in the college loan market. More than 50 firms have abandoned or cut back their federal or private student loan programs this year, unable to raise money in the financial markets.

While families used to secure student loans almost regardless of their credit history, "Those days are over," said Tony Erwin, director of financial aid services at Northeastern University in Boston and president of the Massachusetts Association of Student Financial Aid Administrators.

As students and parents begin the process of applying for financial aid and loans for the upcoming school year, Erwin warned, loans are going to be harder to come by and more expensive: "It's going to be a problem. There's no question about it."

Student loans have been among the easiest and cheapest loans to get - allowing millions of Americans to go to college as long as they promised to pay the bills after graduation. Given this year's challenging environment, many colleges are offering more assistance to students, such as more generous grants and direct government-backed loans with capped interest rates, such as Stafford loans.

But many families, especially those paying for private schools, will find that's not enough. For example, if a private college costs about $45,000 a year, a typical family will have to come up with at least $20,000 on their own, whether from loans or savings.

One Raynham mother and human resources executive was so concerned about nailing down private loans for her two sons in college that she applied in March, earlier than usual.

With $60,000 in tuition bills due this fall and her husband struggling with cancer, Lynne Tartaglia applied for $33,000 in loans from Massachusetts Educational Financing Authority, or MEFA. She received her approval on March 7.

Still, Tartaglia was nervous. So, loan agreement in hand, she contacted MEFA again. An e-mail she received in response said that Tartaglia had applied too early and that the rates and terms she was promised were not valid for the coming year. But she hopes they will honor her signed document

MEFA's executive director, Thomas Graf, declined to comment on Tartaglia's loans. Earlier this week MEFA said it would no longer offer federally guaranteed loans - loans that 14,700 Bay State students took advantage of in the 2007-2008 school year. But Graf said he was "hopeful" that the 25-year-old nonprofit would be able to raise funds in the bond market to continue its private lending program.

"I'd feel a lot better if I got something in writing saying 'your loans are all set,' " Tartaglia said. "Until they do that, we'll be waiting."

Norton, the UMass student whose Teri loan vanished, was in the dark for nine days, asking his brother for a temporary loan.

Teri spokeswoman Beth Bresnahan called the glitch "regrettable," explaining that the group's Chapter 11 bankruptcy reorganization had frozen its assets, including money earmarked for checks already in the mail. Teri is still in the process of contacting students; it said it will make good on the bounced checks and cover any fees or interest penalties students incurred as a result.

Yesterday, Norton said the money had finally been restored in his bank account. "It was complete confusion. I just can't believe this happened," he said.

Boston College's financial aid director, Bernard Pekala, said he's concerned about upheaval for families in the upcoming school year. So far, the only lenders that have committed to do student loans are big banks, like JPMorgan Chase & Co., Citizens Bank.

BANK Of America said banks will more closely examine borrowers' credit ratings and charge higher rates than government-backed lenders.

Some federally backed loans are capped at a 6.8 percent interest rate, while private loans can go into the double digits. The fact that interest rates, broadly, have dropped this year may offset some pain for borrowers.

But the slowing economy has many parents in worse financial shape than in the recent past. Some have lost jobs or houses, or seen their credit ratings drop. And home equity lines - a source of college borrowings for as many as a third of parents, estimates James, president of College Parents of America - also are going to be less reliable this year. Not only have home values fallen, but banks are less eager to extend these loans.

"Lots of parents are very nervous about it," said Karen Busanovich, a Woburn financial planner who specializes in student loans. "Home equity has been a good source in the past. Now they're saying, I don't have the equity in my home that I once had."

The chief of the Federal Reserve Bank of Boston, Eric S. Rosengren, said in an interview that no one expected the turmoil in the credit markets to last this long. It started last summer in subprime mortgages, and by February had spread to most debt markets, including auction-rate securities, where many nonprofits, like MEFA, borrow funds. In addition, the market for student loans that have been packaged and sold as securities dried up after last September.

Rosengren acknowledged the turmoil in the sector. "There are serious disruptions occurring," he said.

He said he believes efforts in Washington to make more federal backing available for loans will ultimately help students and families. Senator Edward M. Kennedy has introduced a bill that would increase federal aid and improve some federal loan programs.

In a statement, the Massachusetts Democrat said, "We can't allow the turmoil in the credit markets to become a barrier to college opportunity."

Is this going be the end of Secured Student Loans to the less well off for United States Students.

The Obama administration is paying special attention towards students and in order to promote college education, new plans have been introduced to help college students. According to this plan, paying accumulated debt throughout college will be more affordable—including smaller payment requirements at a minimal interest rate.

The new administration realizes that more than 65 percent of college students are getting loans to pay for their higher education. Therefore in order to help them, it has been decided that they will be given the opportunity to repay loans at a rate dictated by income and family size.

Although students will have to wait until July 1, 2010, the good news is that there are potential plans that include canceling the remaining balance on the loan after 25 years and forgive loans for people who work in public service after 10 years.

But along with the good news, there is some bad too. Before students consider the smallest payment plan or switch majors to enter the public service industry, such forgiveness will result in accumulated interest and may draw attention from the Internal Revenue Service.

Michigan students, in conjunction with peers nationwide, will not be exempted from the IRS as forgiven debts are generally considered taxable income.

Although students will have to wait until July 1, 2010, the good news is that there are potential plans that include canceling the remaining balance on the loan after 25 years and forgive loans for people who work in public service after 10 years.

But along with the good news, there is some bad too. Before students consider the smallest payment plan or switch majors to enter the public service industry, such forgiveness will result in accumulated interest and may draw attention from the Internal Revenue Service. Michigan students, in conjunction with peers nationwide, will not be exempted from the IRS as forgiven debts are generally considered taxable income.

The plan includes the changes in the Pell grants and there are changes for lenders too. The Pell grants will rise with inflation and will be based on the Consumer Price Index. The maximum grant in 2010-11 will increase from $4,731 to $5,550.

In case of the Lenders, whereas students typically receive loans from banks and designated providers, the administration’s proposal encourages students to borrow directly from the government. Students still will have the option to borrow from the banks, but loan rates will not be guaranteed like they would from the government program.

The Institutions that will be eligible for such change in payment programs will more than double i.e. from 1,800 to 4,000 and the total amount of available money will increase six percent i.e. from $1 billion to $6 billion.

Although more money will be available, the new loans, the Perkins loans, will accrue while a student is in college. This provides the government with the funding needed to pay for the Pell grants. If all goes as planned with Obama’s student loan plan, more Michigan students will have the opportunity to obtain a higher education with a loan payment plan catered toward their salary and profession.

Good marks are not the only things students have to worry about before they head off to university. Picking the right account will make a big difference over the next few years

Finance may not be at the forefront of students minds as their first university term approaches, but with banks keen to lure them in, there is the potential to access huge overdrafts and some impressive freebies. Picking the right account can be tricky and making the wrong decision will have an impact on any student's financial situation.

What is a student account?

The main distinction between a standard current account and a student bank account is the interest-free overdraft. Students will typically have access to as much as Ј3,000 without paying any interest. But while a customer can have any number of current accounts, those in full-time education can have only one student account. So anyone hoping to snap up perks from all the banks will be disappointed.

How to pick the right account

Despite the potential for enticing freebies, the interest-free overdraft should be the focus. "The single most important thing that banks can offer you is access to money. Don't get distracted by all the freebies, particularly if they're not things you would have spent money on yourself.

This year, HBOS has been the most generous, with Halifax offering an interest-free overdraft of up to Ј3,000 for up to five years, and the Royal Bank of Scotland offering up to Ј2,750. However, the maximum overdraft is not always guaranteed and it will often be approved on an individual basis.

In any case, a smaller overdraft may be a more suitable budgeting tool for students concerned about having access to large sums of credit. Several high street banks tier the overdraft limit, including NatWest which has an interest-free overdraft facility starting at Ј1,250 in year one, then moving to Ј1,400 in year two, Ј1,600 in year three, Ј1,800 in year four and Ј2,000 in year five.

"Choosing an account where the available credit gradually builds up over the years of the course may help for those who are not used to budgeting.

Any students not planning to live off their overdrafts should also look at the in-credit interest rate. Many offer little or no interest at all, but Abbey's student account pays 2 per cent AER on balances up to Ј500 and gives you Ј50 cash after the first month. Even better, students going to a university that has joined the Santander Universities network can hold a Santander University account and earn an impressive 5 per cent when in credit. HSBC also pays 2 per cent in-credit interest on the first Ј1,000, during the first year at university.

Another factor is ease of access. Does the bank have a branch on campus? Can the account be accessed online? In terms of convenience, NatWest comes out on top with more than 50 campus branches throughout the UK and student banking managers in all Student Service branches.

The debit card offered with the account may also be a factor as some, such as Visa Electron, are not widely accepted in the UK and abroad. Others may have a lower than average withdrawal limit, which can be awkward for those wanting access to large sums from an ATM.

What about those freebies?

These bonus features vary widely from one lender to another. "Students are feeling the pinch as much as everyone else, if not more, so its key for them to look out for real opportunities to save on day-to-day things they use like travel and communications," says the head of NatWest student banking.

Students planning to spend a lot of time travelling abroad may benefit more from an account offering commission-free foreign currency and travellers' cheques. The Halifax student account offers a 25 per cent discount on AA breakdown cover and 20 per cent off its Card Care card protection insurance. Alternatively, HSBC offers two years of worldwide travel insurance, but only if at least Ј250 in one lump sum is put into the account between August and October 2009.

NatWest's 2009 student account offers a five-year, 16-25 railcard worth Ј130, which is ideal for those needing to take the train to and from university, or planning to visit family regularly. Students can also snap up a starter pack for 3's pay-as-you-go mobile broadband with a 50 per cent discount and save Ј100 on laptops.

Lloyds TSB offers a free NUS Extra Card worth Ј10, savings of up to Ј36 on AA driving lessons, free YHA membership for one year for discounts at hostels around the world, plus 35 music downloads from eMusic.

What to watch out for

Student finances can easily become erratic, so the cost of exceeding overdraft limits is a vital component. Check the rate for both an extended and an unauthorised overdraft (one that has not been arranged with the lender). "If students feel they may need to increase their borrowing, they should look at the authorised overdraft rates and charges and also consider what they may get charged for unauthorised borrowing.

The 2009 student package from Barclays provides an interest-free overdraft facility of up to Ј2,000, then an authorised overdraft of up to Ј1,000 at a rate of 8.9 per cent EAR (equivalent annual rate). Students banking with Abbey, however, will pay 9.9 per cent EAR for borrowing after their interest-free allowance of up to Ј2,000.

When it comes to unauthorised overdrafts, the charges will vary greatly, but most lenders set a sky-high rate of interest and penalties to boot. Abbey, for example, charges a rather painful 28.7 per cent EAR on unauthorised overdrafts and a monthly fee of Ј25. Similarly, Halifax charges 24.2 per cent EAR and Ј28 per month. Barclays' Personal Reserve facility covers you if you go over your overdraft limit, but charges Ј22 for each consecutive five-day period in which you use this reserve.

What happens after graduation can also be a shock to some students. Most student accounts will automatically transfer to a graduate account or a current account. Some lenders will take away the interest-free overdraft immediately, which could pose problems for those unable to pay it off quickly.

Others will gradually reduce the overdraft limit which can offer a much easier way to pay it back without the risk of paying high interest on the debt. The Lloyds Graduate account, for example, has a tiered 0 per cent overdraft limit dropping from Ј2,000 for the first year after you graduate to Ј1,500 in year two and Ј1,000 in year three. The rate for going over these limits, however, is 16.8 per cent which could really sting those who need access to more credit