Consolidate Student Debt

The choice to consolidate student debt is a wise one as most college graduates have substantial loans to pay off. The process of paying off loans can be simplified by combining multiple payments into a single payment which can be cheaper and more efficient. The less that is required to for a payment, the more can be kept and either spent, or put away in savings. Multiple bills can quickly become confusing and mistakes are more easily made, such as the correct funds to the appropriate collector. A much simpler method is to set aside enough funds to make a single payment to one lender, versus multiple funding to several. Consolidation can save a lot of time, money and stress which can prove to be invaluable for the future, "to the full assurance of hope unto the end" (Hebrews 8:11).

The decision to consolidate student debt is a wise one for many reasons. Those who do so can see anywhere from a ten to sixty percent reduction in the required payment which can save a lot of money in the long run. All the funds that are saved can go towards other bills such as additional outstanding credit card bills and the like. Consolidation is ideal for those who are looking to put a down payment on a house as credit scores are improved and a person can pay bills with confidence. The potential for saving money is just one of the many advantages that can be gained when a graduate chooses to consolidate loans.

There are many benefits to debt consolidation, however, there are a few minor drawbacks as well. For example, payments can be made smaller and more manageable, however, smaller amounts does mean an increase in the time required to pay off a debt. Decreases in monetary amounts cause an increase in the time required to pay off a loan. This means that a person simply must be sure to expect for a longer duration so that they can plan accordingly. If a person has adequate preparation and factors in smart monetary choices in the process of deciding to consolidate student debt, the duration of a loan seem like no work at all, freeing a person to focus what they decided to do for a living as opposed to what must have to do to make ends meet.

The main reason people seek to consolidate student debt is to be able to have a single payment versus several. Such a method can be very good for those having just graduated as a steady career might not be guaranteed or at the very least hard to come by. Recent graduates potential have a lot to deal with as the future is uncertain. Loans are a smart investment as the borrowed funds allow for the gaining of a higher education. However, borrowed funds have to be paid back at some point. Consolidation allows for a person to easily manage multiple debts by combining all into one, which allows for a simple payment that is much easier to keep track of than several. Added benefits include a lower interest rate and the ability to lock in a low rate of interest which will remain fixed throughout the duration of the loan.

A lot of people might find the choice to consolidate student debt a viable one, but perhaps have no idea where to begin or what steps are necessary to put such a plan into action. People in such a situation need not fear as there are experts whose job it is to assist with such situations. Financial accounts and advisors can be found who will take the time to answer customer's questions and lead them to the best plan that fits with whatever the situation might entail as result of the decision to consolidate student debt. A lot of information can also be found on the Internet. Many banks, financial institutions, and lending agencies have web sites which are full of helpful information, tips and suggestions which can assist in pointing a person in the right direction.

Recent college graduates can have a lot to deal with and should not have to also be concerned with multiple bills hanging over their heads. The options to consolidate student debt are plenteous, and allow for a bit of stress relief which can be just what is needed by way of extra cash, which can go a long way towards larger more substantial savings which can make all the difference in situations that might arise in the future. Those who decide to plan ahead are more adequately prepared to deal with unexpected financial situations which can help to prevent more debts in the process. There are several sites on the Internet that offer programs to help recent graduates not only eliminate debt quickly and the steps to take in order to prevent from falling into the situation again.

Upon graduation, the average graduate has to deal with many loans, on top of the search for a job and the other demands that come with setting up a solid foundation for the future. Graduates should keep in mind that life can be made a little easier by way of the choice to consolidate student debt. Multiple bill payments can easily be consolidated, however, those who desire to do so should look into the options available as not student loans are able to be streamlined into a single payment. Most loans are able to be converted which goes a long way towards making the task of paying bills a little easier.

Consolidate School Loan

Looking to consolidate school loan expenses, countless former students have looked for various sources and means to cut down both on the number of loans being paid each month and to perhaps cut the amount paid on all of the loans to a lower single payment. In many students' cases, loan amounts today for student educational expenses can easily be beyond fifty thousand dollars. In some cases the sum may be double that amount. The students of the 21st century are looking at very high debt amounts for their training and bankruptcy laws have gotten much tougher, not allowing students to so easily disengage from fiduciary responsibilities. There are really two types of student loans, federal and private. Each one has peculiarities and requirements that must be met in order for them to be able to have any chance to consolidate school loan expenses.

The first are the federal student loans that are eligible for consolidation. If a student has federal Stafford loans, PLUS loans, Perkins loans, HEAL loans, Federal FFELP and Direct loans, he has lending agreements that are eligible under Department of Education guidelines to consolidate school loan expenses into one payment. When a college student first leaves school, federal student loans are due in ten years. Monthly payments are figured on a ten year pay back schedule. With often very high balances, a payment on a single loan can be high but three or four separate accounts due each month can be breathtaking for a young person. Consolidation of all the accounts allows the student to stretch loan liability out to as far as thirty years, often cutting in half the monthly ten year obligations. But it does mean that by doing the federal loan consolidation over the thirty year time span, a lot more interest will be paid.

There are some guidelines and requirements to consolidate school loan expenses from the federal government and the first is that, consolidation will only occur with federal loans amounting to more than twenty thousand dollars. Additionally, a student must not be in default on any of the loans and must be less than a half time student. But then it gets really good for some students. How does not having to be employed grab you or not needing a cosigner or not having to have any collateral for approval? What about having a stinky credit score and it not mattering? Almost sounds like the requirements for being on a chain gang! God is also ready to ready to forgive each of us of our many sins as the Bible reminds us, "If we confess our sins, He is faithful and just to forgive us our sins and cleanse us from all unrighteousness." (I John 1:9)

There are plenty of online sites to help a student consolidate school loan expenses. Educational loan interest rates run from about four percent for HEAL loans to over eight percent for PLUS loans. Application for consolidation of government loans is easy and fast but remember one thing. A person may have lousy credit and no cosigner and no job but bankruptcy is out of the question as far as the government is concerned. Filing chapter seven where a person can walk away from all debts does not include any money owed to Uncle Sam including student loans and taxes owed. Tax refunds will be garnished as well as other actions taken if a student defaults on educational loans from Lady Liberty. But if the consolidation loan is paid on time each month, a student can quickly build a very fine credit score which will be of great value all of the student's life.

To consolidate school loan expenses from a private source such as a bank, other requirements come into play. Mr. Banker is not nearly as accommodating as Uncle Sam and will require that the recent undergraduate degree holder have a co-signer for approval along with at least two references. Additionally and here is the big one, an applicant must provide monthly income and expense figures. For a recent graduate, that one could really hurt, especially if the job is entry-level and a new car to celebrate graduation was recently purchased. In that case, the co-signer better be related to King Midas. The effort to consolidate school loan expenses will be rewarded by the student being able to push undergraduate loans all the way out to twenty five years if desired. Graduate students can go to thirty years.

It may be difficult for a young graduate to fathom the length of time it will take for paying off educational loans, especially if the loan amount is akin to the size of a mortgage payment. The move to consolidate school loan expenses for most students is a must in order to survive the month to month grind of paying bills. But there needs to be a strong warning given to all students who desire school but must borrow large sums of money to attend. While faithful paying of bills every month of every year is commendable, just a couple of thirty days late payments can wreak havoc on one's credit history. Additionally, the recent graduate needs to understand how credit scores (FICO) are assembled and one of the most important factors is the debt to income ratio. If the percentage of a person's monthly income is more than forty percent loaded with credit payments, including school loans, even if the bills are paid every month on time, the credit score will be affected. Wisdom would dictate that trying to have all the things that one's parents have accumulated over decades with credit is the beginning of a lifetime of financial pain.





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