TIPS ON CONSOLIDATING STUDENT LOANS
Student-loan consolidation has its benefits, but it's not for everyone.It seemed like Monopoly money to her. Emily, a New York University senior who prefers not to use her last name, took on thousands of dollars of student-loan debt without giving it much thought--until now. Just weeks from graduation, she is applying for paralegal jobs in a tough market and suddenly coming face-to-face with the fact that in six months, she'll have to start making monthly payments of around $250 on her $20,000 debt."All I had to do was sign on to the Sallie Mae Web site, check off a few boxes and wait for the money to be disbursed," she says. "The thought of repaying it never really hits you until graduation is near."If only the task of repaying student loans was as easy as taking them out. Instead, it's a complex process with which millions of college grads must grapple. Two out of every three undergraduates walk off the graduation stage with some form of student debt, according to a 2008 College Board study. The average: $22,700 per graduate--and that doesn't count the student-loan debt incurred by the half of entering college students who never earn a degree.With three federal loans and seven private ones, Emily is in a situation familiar to college seniors and recent graduates across the nation. Like her, many consider consolidating their loans as a way to lower their monthly payments and simplify their finances. The theory is that, either by stretching out repayment of the loans or refinancing them at lower interest rates, the borrower can reduce monthly payments. Unfortunately, it's not a strategy that works for everyone.One problem for people like Emily is that federal loans cannot be consolidated with private ones. Another is that beginning in July 2006, all federal student loans began carrying fixed interest rates. Before then, federal loans were issued with variable rates; by consolidating them, borrowers could often lock in a rate that was lower than what they were paying on each loan separately.Now, "there is no financial benefit to consolidating federal loans, other than having a single monthly payment and access to alternative repayment plans," says Mark Kantrowitz, publisher of FinAid, a Web site that tracks the college financial aid industry.If you can afford to make the payments on your loans, Kantrowitz says, consolidation isn't going to help you. If, on the other hand, you are having trouble making your monthly payments or think that you will in the future, consolidation can present several alternatives.Remember, though, that while practically all repayment plans lower the monthly payments, they also add on several thousand dollars in interest costs by stretching out the life of the loan. If, for example, you stretch out a standard 10-year student loan to 20 years, you can cut monthly payments by 34%, but you will end up paying double the amount of interest over that time, Kantrowitz says.If some or all of your loans were written before July 2006--say, in your freshman year of college if you are graduating this year--wait until after July 1, 2009 to consolidate, Kantrowitz suggests. He predicts the interest rate will tumble to a historic low of 2.6% from its current 4.2%. The problem with acting too quickly? Borrowers who have already consolidated won't be permitted to do so again at the new rate.Starting this July, borrowers who have federal student loans can opt for a new income-based repayment plan. This may be a smart option for those entering fields with relatively low salaries, like public service. Under the plan, which is open to anyone with federal loans, the monthly payments are capped at a certain percentage of the borrower's income.The rate is defined as the difference between the person's adjusted gross income (the amount on which you are subject to pay federal taxes) and 150% of the federal poverty level (which comes out to $16,245 for an unmarried person with no children, based on current rates.)For an unmarried individual with no children and an adjusted gross income of $40,000, monthly payments would be capped at $365. An increase in salary would mean an increase in the monthly payment. If the full amount borrowed is still not paid off after 25 years of these payments, the remaining balance is forgiven.Students who have already started repaying loans can opt for the income-based repayment plan, but there is an important caveat: Doing so will restart the clock and give your loan a new term of 25 additional years.Emily, the NYU senior, like many students, had to turn to private loans to cover what federal programs would not. Private loans, unlike federal ones, carry variable interest rates. Consolidating them may save students money.If, when the borrower took out the loan, he had a limited credit history, as most students do, three or four years of making regular payments on a credit card or an impressive employment history can improve a credit score by 100 points or more. That, in turn, can persuade a lender to reduce the interested charged as a result of a loan consolidation."Borrowers can get a lower rate now, and their rate may not jump as high in the future," Kantrowitz says.Another potential benefit of consolidating your private loan is the removal of a co-signer, which can save a parent or relative from a potential liability. This is possible after 24 to 48 months of making regular payments.If you would like to consolidate your private student loans, you should turn to either Chase, NextStudent, Student Loan Network or Wells Fargo ( WFC - news - people ), Kantrowitz suggests. All offer slightly differing terms, and all have caps on the amount of total debt you can consolidate.Important questions to ask a consolidator are whether it charges origination fees, if there are prepayment penalties, what the maximum interest rate is and what the life of the loan will be. Read the terms carefully, and if possible, have a friend or relative do the same. If you don't understand something, ask the lender until you get a straight answer. After all, you're entering into a contract that can last as long as 30 years.Steer clear of any lender that charges a prepayment fee. You'll want the option to pay off the loan early without being penalized for it.
Applying for a Marriage License in California
California has a few unique marriage laws and regulations that require you to make a few decisions prior to getting your license. One decision is whether or not to apply for a confidential marriage license. Another is if you want a friend or relative to participate in the Deputy for a Day program.
Related Articles: Marriage License Laws | Benefits of Being Married | Secret Marriages | Getting Married 101 | Your Name Change Options
Call for Appointment:
It is recommended that you call the California County or City Clerk's office to see if they suggest setting an appointment. You could find yourselves in a long line with as much as a 2 hour wait without an appointment in some California locales.
ID and California Residency Requirements:
California requires a picture id such as Drivers License or other valid identification. Some counties recommend bringing certified copies of your birth certificates.
You do not have to be a resident of California to apply for a marriage license there.
Information you need to know before you start filling out the marriage license application:
Where each of your parents were born (city and state)
The names of your parents including your mother’s maiden name
Confidential License in California:
If you have lived together as a married couple, you can apply for a confidential license. This means there is no public record of your marriage.
Previous Marriages:
You must show proof of divorce, death or annulment. You need to bring a copy of your final divorce decree if you have divorced within the 90 days through past year (varies by county).
California Waiting Period:
There is no waiting period in California.
Fees:
It will cost you $45.00+ to get married in California. Some California counties charge $84+. The cost of receiving a marriage license varies from county to county and some California counties will only accept cash ... so call to verify what the county charges for a marriage license and don't leave home without cash to pay for the license!
Other Tests:
California doesn't require blood tests.
Under 18:
If either the bride or groom is under 18, at least one of the minor’s parents, or legal guardian, must appear with the couple. Certified copies of birth certificates are required. The couple must also schedule an appointment with a counselor and then appear before a California superior court judge.
Proxy Marriages:
Yes, proxy marriages are allowed in California but on a very limited basis. Only members of the armed forces who are stationed far away in wars or conflicts can apply for a proxy marriage. The California proxy marriage law allows military personnel to give their power of attorney for someone to stand in for them during their wedding ceremony.
More information on California proxy marriages
Cousin Marriages:
Yes.
Common Law Marriages:
No.
Same Sex Marriages:
No. Was Yes.
On 8/04/10 U.S. District Court Judge Vaughn Walker overturned California's Proposition 8. An appeal to the 9th U.S. Circuit Court of Appeals was filed by supporters of the gay marriage ban. That trial will begin on December 6, 2010. Gay weddings are still not allowed in California.
As of 6/16/08, due to the May 2008 ruling of the California Supreme Court, same-sex marriage was legal in California. That was changed with the passage of Proposition 8 in November 2008.
Gay couples can still apply for a Domestic Partnership Certificate. More info
California will now "provide the same legal protections that would otherwise be available to couples that enter into civil unions or domestic partnerships out-of-state. In short, this measure honors the will of the People in enacting Proposition 8 while providing important protections to those unions legally entered into in other states."
Source: Dan Smith. "Schwarzenegger signs gay rights bills." Sacbee.com. 10/12/2009.
Officiants in California:
Clergy, Justices, Judges, Magistrates, Marriage Commissioners (current or retired).
Frequently Asked Questions by Marriage Officiants
A few California counties allow a member of your family or a friend to officiate at your civil marriage ceremony.
Deputy for a Day Program
Miscellaneous:
A California marriage license is valid for ninety (90) days. What this means is you two have 90 days to get married and have your marriage license officially recorded. If you wait past that time frame, you can't get married without applying for and paying for another marriage license.
Copy of Certificate of Marriage:
You have to contact the County Recorder's Office in the county in which the marriage occurred to get a certified copy of a marriage license.
Still Confused About Getting Married in California?
If you are still confused about the different terms used in the marriage license application process, check out these articles:
Marriage License 101 -- The Basics
Marriage Applications
Marriage Licenses
Marriage Certificates
PLEASE NOTE:
State and county marriage license requirements often change. The above information is for guidance only and should not be regarded as legal advice.
It is important that you verify all information with your local marriage license office or county clerk before making any wedding or travel plans.
Please notify us of any oversights or errors.
