Student loan debt has become a more common presence in the lives of graduates as there are students who continually need funding to meet college tuition costs and, as a result, have turned to student loans as a way to either supplement costs which are not met through scholarships and loans, or simply to meet their college expenses. Obviously, students who are exiting college with student loan debt may have multiple student loan debt obligations and, as a way to lower monthly payment obligations, many have turned to student loan consolidation plans as a result.
Student debt consolidation loans are seen to be beneficial by many graduates who have multiple debts as it can be easier to make one monthly payment rather than many and, for those who are combating multiple interest rates, a consolidation loan only requires that a graduate overcome costs related to one interest rate on their consolidation loan. While practicality and affordability are some of the main factors behind student loan consolidations, there are those who feel that not all students may benefit from a student loan consolidation plan.
Obviously, there are some who are unable to meet multiple student loan debt repayment obligations on various loans due to economic and employment difficulties which have been present for many graduates, so consolidation is the only way that they can affordably combat their debt at the present time. There have also been some students who have consolidated debt and simply began paying more than their minimum monthly requirement in the hopes of erasing their debt in a timely manner, but again this is not always an affordable options for graduates.
However, financial aid counselors and advisers have suggested that graduates take stock of their student loan debt situation and make sure that there is no alternatives to student loan debt consolidation before proceeding. Some students may be able to erase debts separately in a faster amount of time and at lower overall costs since a consolidation loan typically requires that a student make more payments over a lengthier period of time and, during this timeframe, interest will build on a higher principle and end up increasing costs.
Advisers also suggests that students seek out as much funding from scholarships and grants as possible so that student loan debt may be avoided altogether, but when a graduate exits school with debt, repayment options beyond student loan consolidations need to be considered as opportunities from federal lenders like income-based repayment programs or forbearance are also available, but again, it will depend on a student’s particular situation as to which of these options are available and affordable.