Consolidating student loans after college and beginning the process of erasing college loan debt through various programs tailored to help individuals pay off what they owe can benefit graduates in various ways and, potentially, could help them become debt free much sooner. However, factors like the types of loans a student has, their income after college, and their financial discipline are all factors that will either help a student get out of debt in a much timelier manner or delay their repayment timeframe and potentially cause the overall costs they must meet to rise.
In the debate over student loans debt, there are some advisers who feel that borrowing for college is a big mistake and should be avoided at all costs, and some have even gone so far as day that students who cannot afford college should enter the workforce out of high school in order to save money or wait until they qualify for enough student financial assistance through scholarships and loans so that the debt can be avoided. However, there are also some proponents of student loans when it comes to helping meet college costs, but those who feel student loans are okay do caution students to make sure they exhaust funds from free sources of financial assistance and borrow the absolute minimum they need to meet tuition costs. Some even go so far as to suggest the students enter into a financing option with their university and meet their tuition payments throughout the semester so as to avoid student loan debt.
However, FoxBusiness.com recently reported on issues that graduates face and, concerning student loans, stated that, “While college is a great, meaningful experience, it doesn’t come cheap. If one of your graduation presents includes a student loan bill, set up a repayment plan.” This sentiment related to college costs not being cheap is becoming truer every year as college tuition costs are on the rise at numerous universities across the nation and, even for those who are receiving financial assistance, this could cause problems down the road for individuals when graduation occurs and their student loan debts must be repaid.
However, consolidating student loans is one of the more popular ways that individuals with multiple debts begin the process of erasing what they owe, and in certain cases, this may help students get out of debt in a timely manner, but this all depends on the repayment strategy that an individual implements. Proper repayment habits and going above and beyond what is required can help a graduate erase their student loans fast if a consolidation loan is used, but there are also some advisers that point out those who may only have a few student loan debts can implement similar practices and keep their loans separate so that they can pay off their debts at lower overall costs and in a timelier manner as well.
Essentially, a consolidation loan can be helpful for a student who cannot meet the total sum of student loan repayment costs on each individual loan they may have, but when students are offered a more affordable monthly payment, making a payment that is higher than the minimum payment will, obviously, lead to student loan debt relief much sooner and potentially lower costs as a result. However, before students rush into a consolidation option in the hopes of using this particular method or simply getting more affordable monthly payments, advisers also suggest running the numbers so that a graduate can see if they can pay off their debts separately in a much more efficient way. Some have been able to focus as much money as they can on one particular student loan, while meeting minimum monthly payments on others, and have been able to erase these lower principal amounts associated with separate loans much faster than a consolidated principle, even when they are paying a payment that is higher than their minimum monthly requirement on a consolidation loan.
While student loan consolidation has been popular for some, it is not always the best route for every student and, despite some being able to use this opportunity to get out of debt faster, it can be more costly for others and, in these cases, students may benefit more if they keep their debts separate and implement payment practices that will allow them to combat these debts in a more aggressive manner so that, in either case, they may find student loan debt relief much sooner.