Making Money from Consolidated Student Loans Suffern NY

One of the great things about student loans in Suffern, 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

National Canada Finance Llc
(914) 467-7815
520 White Plains Rd
Tarrytown, NY
American General Financial Services
(315) 258-8670
64 Owasco St
Auburn, NY
Community Bank Na
(315) 265-3700
May Rd
Potsdam, NY
First Alternative Mortgage Corp
(518) 346-3381
101 Cordell Rd
Schenectady, NY
Citifinancial
(518) 285-6073
600 N Greenbush Rd
Rensselaer, NY
Gold Mortgage Services Inc
(845) 896-7400
1117 Main St
Fishkill, NY
Beneficial New York Inc
(518) 584-2505
137 Maple Ave
Saratoga Springs, NY
First National Bank of Long Island the
(516) 671-2299
108 Forest Ave
Locust Valley, NY
Keybank
(518) 463-1224
200 Washington Ave
Albany, NY
Keybank
(716) 693-9000
4248 Delaware Ave
Tonawanda, 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 College Loans Suffern NY
If you are resident of Canada and want to continue your education, you don’t need to worry. You can avail benefits from government college loans provided by the government of Canada. These loans are offered by Canadian government in order to arrange the education of such students who are unable to meet their educational expenses due to their poor financial status.
- Repaying Student Loan Debt Suffern NY
- Student Loans Suffern NY
- Financing College Studies with Home Equity Suffern NY
- Surviving the Recession Suffern NY
- Student Loan Consolidation Repayment Program Suffern NY
- Government Grant Student Money Suffern NY
- Student Loan Rates Suffern NY
- Student Loan Consolidation Suffern NY