Making Money from Consolidated Student Loans Binghamton NY

One of the great things about student loans in Binghamton, and consolidated student loans in particular, is the low interest rate. By consolidating your loans you sometimes see a drop in the interest rate by 1-2%. It seems small and insignificant, but if you follow the tips from this article you can actually turn that reduction into profits.

Local Companies

Atlantic First Financial Corp
(212) 962-1883
217 Park Row Ste 5
New York, NY
Bank of New York Rockland Division the
(845) 634-0033
2 New Hempstead Rd
New City, NY
Roche Equity Inc
(212) 308-9125
205 E 59th St
New York, NY
Beneficial New York Inc
(631) 289-9720
655 Montauk Hwy
East Patchogue, NY
Seaboard Securities Inc
(631) 244-1558
80 Orville Dr
Bohemia, NY
Beneficial Homeowner Service Corporation
(518) 792-3115
274 Glen Delete St
Glens Falls, NY
Keybank
(518) 237-0400
74 Broad
Troy, NY
Household Finance Corporation
(631) 232-2929
1822 Veterans Hwy
Central Islip, NY
Keybank
(845) 331-0207
267 Wall St
Kingston, NY
Keybank
(518) 449-4082
135 S Pearl St
Albany, NY

Provided By:

How to Make Money From Your Consolidated Student Loans

Author: RJ Licata

One of the great things about student loans, and consolidated student loans in particular, is the low interest rate. By consolidating your loans you sometimes see a drop in the interest rate by 1-2%. It seems small and insignificant, but if you follow the tips from this article you can actually turn that reduction into profits.

As mentioned above, consolidated loans typically provide you with a lower interest rate than unconsolidated loans. They also offer repayment plans that can extend for up to 30 years. If you are a disciplined person who has a little bit extra money, you can use the money you save on payments each month to earn you cash.

Here's how it works. When you consolidate, your payments are usually lowered, which means there's extra money between what you used to pay each month and your new minimum payment. Instead of taking that extra money and spending it on impulse purchases and fun, it would be a good idea to use it to pay off extra principle on your loan. This can drastically cut down on the length of your loan, meaning you'll pay less in interest. Not a bad idea. But it will only save you money, not earn it.

In order to earn extra money from your consolidated student loans you'll need to take that extra money each month and invest it into a money market fund that has historically earned more than your current interest rate. For example, if your consolidated interest rate is 6.5%, you'll want to find a mutual fund that has consistently returned 10-12% or more. Then you'll earn 4-5% on your extra money every year. And here's the best part: doing it now will allow compound interest to kick in, so after the life of the loan you'll have a nice nest egg of profits from the money you were expecting to spend every month anyway.

And that's not all! Federal student loan interest is tax deductible. So you'll be able to claim the interest you pay on those loans every year, saving you even more money.

Keep in mind that while all this sounds great, there are risks involved. Although over time the stock market has been stable, there is a small chance you could lose your investment or make less in returns than you're paying in loan interest. For these reasons it's best to seek professional consultation before making any sort of investment.

With that said, this method is considered low risk and should at least be contemplated if you're fortunate enough to have some extra money each month.

Visit School Loans Consolidation Guide for more student loan advice such as facts about your federal school loan and information on how educational loan consolidation works.

About the Author:

RJ Licata is a freelance writer and internet marketer. More on RJ's current projects can be found at RJLicata.com.

Article Source: http://www.articlesbase.com/personal-finance-articles/how-to-make-money-from-your-consolidated-student-loans-956048.html

Related Articles
- Repaying Student Loan Debt Binghamton NY
The smart thing to do about student loan is to consolidate the loans if you have take up several student loans and to seek a lower interest rate. This is possible when the graduate have secured a better credit rating after joining the workforce.
- Government College Loans Binghamton NY
- Surviving the Recession Binghamton NY
- Student Loans Binghamton NY
- Financing College Studies with Home Equity Binghamton NY
- Student Loan Consolidation Binghamton NY
- Student Loan Rates Binghamton NY
- Government Grant Student Money Binghamton NY
- Student Loan Consolidation Repayment Program Binghamton NY