Making Money from Consolidated Student Loans Mount Vernon NY

One of the great things about student loans in Mount Vernon, 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

Washington Mutual Bank
(201) 536-1589
414 Grand St
Jersey City, NJ
Alliance Capital Llc
(718) 835-1022
561 10th Ave
New York, NY
Alphadyne Capital Co
(212) 806-3700
17 State St
New York, NY
Bank Of America Atm
(800) 432-1000
1125 Eastern Pkwy 1125 Eastern Pkwy
Brooklyn, NY
silk city holding
(973) 768-7709
P.O. Box 451
bloomfield, NJ
BANK OF AMERICA ATM
(800) 432-1000
30 Mall Dr W Newport Centre 281
Jersey City, NJ
406 Partners Llc
(212) 334-0128
135 Grand St Fl 5
New York, NY
Allmet Capital Funding
(212) 244-3006
16 W 32nd St
New York, NY
American One Mortgage
(212) 684-7550
271 Madison Ave
New York, NY
Federal Reserve Bank of New York
(212) 720-8258
33 Liberty St.
New York, 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
- Government Grant Student Money Mount Vernon NY
Going to college can be very expensive so you need to find free grant money so you can get your tuition and books paid for. There are many kids in this country that do not go to college and this is mainly due to the fact that they cannot afford to go. There is no reason that any student should not be able to go to college and get an education. Even if you do not have the money there is financial aid available for you.
- Student Loans Mount Vernon NY
- Government College Loans Mount Vernon NY
- Financing College Studies with Home Equity Mount Vernon NY
- Student Loan Consolidation Mount Vernon NY
- Repaying Student Loan Debt Mount Vernon NY
- Student Loan Consolidation Repayment Program Mount Vernon NY
- Surviving the Recession Mount Vernon NY
- Student Loan Rates Mount Vernon NY