Money

Student Loan Consolidation – Paying Off College or University Debt

In recent years, the debate about whether attending college pays of in the end has been heated and heavy. There are many statistics that show so many college grads never end up earning enough money to repay their student loans for their fancy degrees, and have such difficulty finding a job after college that they may have been better off taking a tech school or trade school route.

Today’s college graduates are often drowning in academic debt in the six-figure range. On average, every graduating college senior walks away from their education with at least $25,000 in debt – which can and does greatly affect their success in the world post graduation. Of course, this means that many people are looking for options to get out of the student debt, to pay it down more quickly and for student loan consolidations that will enable them to literally live after graduation. Student loan consolidations can be a tricky subject, and it is vital that before you explore any options or sign on any of the dotted lines you make sure that you are dealing with a reputable organization. Many students, due to their naivety get caught up in student consolidation loans that literally haunt them for decades because of poor decisions made during a time of stress and need.

The following are some of the most common reasons to look into student consolidation loans.

One of the first, is that many students have loans from many different lenders that they acquired in order to finance their education. This means that post graduation, they are making multiple payments to multiple financial institutions. Obviously, a student consolidation loan will minimize the payments to one lender, and often – the payments can be lower. However, if you were able to afford the cost of the payments before – you shouldn’t lower your payment because that can exponentially increase the duration of time you will be paying off your student loans. Simplifying by finding a consolidation loan to take the place of 5, 6, or even 7 different payments is definitely a reason to investigate student consolidation loans. And, if your particular life situation requires a lower monthly payment in order for you to keep housing and put food on your table, lowering your payment amount can be a huge relief.

Just like any sort of refinancing, a consolidation loan may come at a lower interest rate. Some lenders give discounts to students who are newly employed, or who meet certain income requirements. These discounts over the years can add up to thousands of dollars being saved by the student. You might want to check with your private bank first, because often there are discounts available for customers with consolidation loans.

In some forms of student consolidation loans, there are loan forgiveness programs in which the lender will help to get some of the debt you owe reduced or forgiven. These programs are hard to come by, and you can find out more about them right here.

Additionally, depending upon which field of study you graduated in, and whom your employer is – you may be able to find some beneficial options based on those qualifications. Some employers after recruiting actually help to defer or pay back student loans, and consider this repayment a taxable income after hiring. Additionally, there are many professional agencies in such dire need of trained and educated professionals, that loan forgiveness or consolidation loan options exist through certain professional agencies. If you join a professional, accredited agency after graduation and meet requirement you may find that there are some amicable options within those organizations to help you out financially.

According to Forbes magazine, students looking to get the best service from a consolidation loan should look into the following agencies for loan consolidations. Chase, NextStudent, Student Loan Network, or Wells Fargo. In a 2012 report, these agencies were best able to help students with loan repayment.

Additionally, Forbes Magazine recommends that students stay away from any agency that charges a prepayment fee should you want to pay off the loan early. They also recommend consolidating any and all loans that you may have with a variable interest rate, to one that will stay consistent. Many students find that a years worth of work history earning a salary, and good payment history can secure students the best loan consolidation to meet their needs.

Additionally, before accepting a student loan consolidation, make sure you ask about the life of the loan, the terms, whether they charge origination charges and other questions about things (normally found in the fine print) that you do not understand.

In this day and age, depending upon what your goals after high school are – it is important to weigh and consider the options available for you. Many people find that pursuing trade schools, attending school locally, loving off campus – and utilizing financial assistance programs (many vary state to state) can help them to avoid hefty loans post graduation. College is an expensive investment in your life, but not one that you should spend the rest of your life paying for.

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