Student Loan Debt Consolidation
People who graduate from college in 2008 had an average student loan debt of $23,200, according to a new report from the Project on Student Debt. In some cases, student loan debt consolidation could be helpful.
High Unemployment for College Graduates
With a high rate of unemployment, many graduates have faced a tough time finding jobs to begin paying back their student loans. The unemployment rate for college graduates was 10.6% in the third quarter of this year. Some graduates have questioned whether it was really worth it to go to college and end up deeply in debt.
Consolidate Loans for One Payment
If you are among those struggling to pay back students loans, here are some things to know about debt consolidation. Student loan debt consolidation allows you to combine several loans into one. A debt consolidation loan should give you a lower overall interest rate and more affordable monthly payments. Some consolidation loans actually extend the repayment period to give you lower monthly payments.
Federal vs. Private Student Loan Consolidation
Federal student loans must be consolidated separately from private student loans. There should be no advance fee required when you consolidate federal loans. Avoid any lender that asks for money upfront to consolidate loans.
Student loans taken out by students and parents can be consolidated, but not together. Married couples must take out individual consolidation loans instead of combining their debts.
Compare Debt Consolidation Loans
You can choose any lender to consolidate your loans. So shop around to find the best interest rate for debt consolidation. Some lenders have stopped making consolidation loans because of the tough economy but there is still help available.
Student loan debt usually won’t be discharged if you file for bankruptcy. So if you have a lot of debt it’s best to find a solution such as debt consolidation that allows you to pay the money back and avoid damaging your credit score.
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