Graduate students are suffering from similar financial problems as many undergraduates especially when it comes to student loan debt as the costs of college are not only increasing for many undergraduates but for those who may be pursuing higher degrees as well. Since student loans have been necessary and, when it comes to graduate financial aid cutbacks that may be seen in the future, could potentially lead to higher graduate school debt costs, there are certain students who are either nearing graduation or still in their graduate degree program who may be looking to consolidate their debts as a way to find affordability on their monthly repayments.
Obviously, students who have federal loans are in a position where they may be able to take advantage of debt consolidation options but when graduate students have a mixture of both federal and private loans it will be the case that private loans cannot be grouped into a federal consolidation plan. However, there are also private loans that are being marketed to students in the hopes that some private banks will be in a position to play a larger role in student lending, and because of certain aspects that come with federal loans, there are private lenders who are attempting to compete with certain perks that come from federal borrowing.
Yet, students who have graduate student loan debt are obviously going to be in a position where careful consideration will have to be made on what route they choose since it will be a personal decision on the part of any graduate student as to how they begin to combat their debts after graduation. Some students may have a better opportunity for student loan forgiveness if they stick with federal loans, consolidate their loans after graduation, and enter into a repayment plan that will allow for such opportunities as public service student loan debt forgiveness, but in cases where this is not available for graduate students, repayment plans need to be both affordable and offer students the option to get out of debt as quickly as possible.
There are some who have consolidated their debts after graduation and simply paid more than the minimum monthly requirement on their student loans, which can be helpful when it comes to getting out of debt quickly and lowering the overall interest rate costs that a student will meet, but it also needs to be remembered that this is not an option for everyone and that students should be aware of the minimum payments and potential assistance options available for those facing financial hardships.
Federal loans have often been the source of aid when it comes to not only borrowing student loans but finding affordable repayment plans since such options as forbearance or even income-based repayment programs can be helpful for students who have graduated and may not be in a position to meet the entirety of their debt repayment costs. However, there may be some lenders who can offer an affordable consolidation option as well, and in some cases at a fixed rate, but when it comes to assistance that is offered for those graduates facing financial hardship, this may be a little more difficult to come by from a private lender.
Essentially, students have been urged to explore debt repayment opportunities when their loans are kept separate and when a consolidation loan is used, as students may be able to more affordably combat smaller principal amounts on separate loans than one large consolidation principal. Yet, advisers also point out that since we are facing difficult financial times and a troubling job market, students will need to explore any help that may be available through consolidation plans if more affordable monthly payments are needed for a set time for graduate students.