Consolidating Student Loans After College; Reducing Debt

Student loans follow that majority of college students when graduation rolls around and the average amount of debt for an undergraduate college student is over $20,000. Most college students take out various student loans over their academic career and not all of those student loans are the same. There are student loans and parental loans, subsidized and unsubsidized, among others and when all these payments come in at once, the interest rates can be brutal, bringing the total you repay in the end to double what you borrowed. The subsidized student loans are a good bet for anyone looking to borrow because the government pays the interest but when repayment time comes, again, that mountain of interest is what causes trouble and the best option is student loan consolidation.

Some student loan lenders offer forgiveness programs that will adjust payments based on your income, but a lot of those require you to make a minimum of ten years worth of payments and will ultimately forgive the remainder of the loan after 25 years. However, the world of student loans is complicated and even if your students loans comes from the same lender throughout your collage career there is still confusion and multiple payments to go around. If, though, you have multiple payments at very low interest then obviously you need to research before you consolidate. If a financial institution offers a lower interest rate on a student loan consolidation then by all means jump in because the interest rate fluctuates so often you may be stuck with an outrageous payment.

A student loan repayment is as sure as sunrise but there is hope. Jobs are beyond difficult to find for most graduates these days but some will actually pay off student loans for you. Government jobs, the military, volunteering, teaching, or working in low-income areas offer deals on paying back those pesky student loans. Some programs pay back thousands or even tens-of-thousands of dollars per each year of employment.

In the end, look at how things are personally. If you are walking into a good job then you may be able to pay your loans off without a second thought, but if you are struggling in the economy at the present then compiling those student loans into one student loan consolidation can be of great benefit. Also, if times are really tough, most companies you consolidate through will allow you forbearance for loans and will put off payments for one to two years, but a consolidation before forbearance is a good idea here because the interest still complies.

Again, this all depends on your personal situation. There are loan consolidations counselors who are willing to give you assistance but it’s all a matter of finding the financial institution, consolidation plan, and payment plan that is right for you.

Many students just out of college are struggling when it comes to money so it will come as no surprise that they look for cheap transportation.  Some will start their search for Craigslist Miami Cars before the summer but it is important for all young adults to remember that due diligence is very important when it comes to make any major financial decisions.