STUDENT LOAN CONSOLIDATION

Over 65% of  college seniors graduate with some debt. On average that debt is close to $20,000.

There are several ways to deal with this debt:

• Build a solid budget of expenses and see how much you can allot to the repayment of your student loan; make sure to do it regularly!
• Pay more than the minimum amount due on your student loan debt
• As you progress in your career and earn more money, tweak your budget to focus even more cash towards your student loan
• If you get any bonuses at work, use part for pleasure and part to make extra loan payments
• Utilize automatic bill-pay in order to insure that your student loan debt repayment is a top priority and that your payments are always made on time
• If you end up with multiple student loan debt, consolidate your loans and refinance at a lower interest rate as it will be easier to manage one payment with one deadline
• Do not add any additional debt; try to reduce credit card usage and pay the balance off in full when you can

Debt often takes a period of time to accrue and even longer to eliminate. But if you neglect it, it will stay with you for ages; don’t let it happen!

Bankruptcy filings are reportedly nearing the record two million that was reached in 2005; however, unlike during that time, many believe that majority of the filings of 2010 are not fraudulent. The bankruptcy filing increase follows a trend of defaults that are also increasing.

According to stats from the S&P/Experian Consumer Credit Default Indices, student loan defaults, home foreclosures and bank card loan defaults all increased in the month of April.

“Student loan consolidation” refers to the decision by someone with multiple student loans from multiple sources to combine them into one, single loan. It’s a decision that makes a lot of sense to a lot of people.

Most students who need help paying for college and university end up getting the financial aid they need in the form of loans, which will often come from multiple sources. If you’re a student who needs help, it’s entirely possible that you’ll get help from both public and private sources. The first place you’ll want to go is the government and the Department of Education. They review your financial situation and come up with a figure they think you deserve. After that, you’ll need to cover the rest of your tuition, and that’s where private sources come in to play.

Borrowing money is a very tricky business and it is what keeps the American economy flowing. If you have an outstanding student loan, then you are part of the flow. Say you have multiple student loans from undergrad and graduate studies, you can certainly consolidate all your student loans into a more manageable payment amount.

But what happens after you consolidate your student loans? What if the rates drop or you want to pick up another degree and manage those associated costs? How many times can you consolidate your student loans?

Paying for a college education is a costly process. But for aspiring professionals and inquisitive minds, there is no better debt to aspire to have. Statistically those who complete college earn significantly more than their less educated counterparts, over 1.8 average annual salary of a person who only has a high school degree. With a college education more of a necessity for success, a Federal Consolidation Loan can come in handy down the road.

There are many programs (PLUS Loans, Stafford Loans) to help students and parents finance the overall costs of paying for a college degree. But over time the multiple loans with their plethora of payment due dates may become overwhelming and consolidating to one lump payment may help one straighten out their financial house (please note that only a single borrower can consolidate their loans, a guardian and child’s debt cannot be merged to take advantage of a Federal Consolidation Loan).


As well as the Federal Government, many lenders offer consolidation loans. A Federal Consolidation Loan is part of the FFEL program, which manages all education loans such as the PLUS and Stafford programs. Like all loans, the borrower must contact the lender and properly apply for a Federal Consolidation Loan. After the application has been received, the review process begins and more information from the borrower’s other lenders or from its own system is gathered. The goal to calculate the actual the amount owed on the loans.  The applicant will then be notified about the consolidation loan, normal consumer disclosures, the amount owed, and where to make payments.