College graduates who are exploring debt consolidation loans after they have exited college may be looking for ways to find more affordable payments on student loan debt and credit card debt which may have been acquired during the pursuit of their college education. Obviously, numerous men and women have been using student loans as a way to help them combat rising tuition prices, but there are also some students who may have used credit cards as a way to help them meet certain costs since despite the fact that the CARD Act prevents consumers under the age of 21 from easily accessing these cards, there have been student credit card opportunities in place since the passage of this legislation.
However, when it comes to using a debt consolidation loan after college, some students may find that there are a wide range of options that could be available can help them handle either credit card debt, student loan debt, or a combination of the two. What this means for students is that exploring these options can become more complicated and if enough research is not conducted on the part of these men and women, they could exit college and enter into a consolidation agreement that will put them in a poor financial position early in life.
Essentially, college graduates may benefit from consolidating student loans and credit card debt due to the fact that they can get a lower payments on these debts in most cases, but just because a student is able to more easily meet payments on a month-to-month basis does not mean that this will be helpful in the long run. It’s true that some students are able to get a debt consolidation loan on their college debts through their lender, as the federal student loan consolidation option that is widely used by many college students has been beneficial for some, students have to understand that consolidating could potentially take longer to repay and could increase the overall amount they are giving to these creditors.
For this reason, students have been urged to explore how they may be able to pay off these debt obligations separately, along with exploring consolidation options as well. Some students, like those who enter into a public service career, may be able to consolidate their loans and enter into a forgiveness option that would allow them to have their student loan debt erased after they have made payments for a set period of time. This could obviously lead to lower payments on a monthly basis but also may be advantageous for some students in terms of how much interest they will pay due to the fact that they could have such a percentage of their loan canceled after meeting these forgiveness requirements that any interest costs may not carry much weight in terms of the overall amount they have forgiven.
While this will not be the case for all students, and when credit card debt is factored into this equation, some students may have to look beyond federal consolidation options, as private loans or other debts cannot be consolidated under this particular option. Yet, students may be able to talk with financial officials to help them explore these opportunities available specifically for their situation, as each student’s debt repayment plan will require a personal decision on their part as to how they can combat these obligations. However, there are some cases where students may run the risk of missing payments or defaulting on certain debts, and if a student does their homework and concludes that debt consolidation will be right for their situation, this has also been one route students have taken to avoid financial problems in relation to missed payments, even though it may cost them more overall when interest is factored in.