1. The costs linked to college education are so
high these days that graduates now look
forward to beginning their working life on the
back foot. This is not a dramatic
overstatement, with statistics showing that
most 25 year olds emerge from college with
consumer debts of $30,000 and educational
debts of double that. The answer? In most
cases, consolidating student loans is the best
method of debt management.
westernsky

2. The reality is that, with debts of almost $100,000 hanging over them,
most graduates need to set about organizing their finances straight away
Re-negotiating repayment schedules is one way to do this, but in seeking
consolidation financing to clear debts, they get a fresh start Understand
that this does not mean that student loans, and the obligation to repay
them, evaporates away The debt cannot simply be gotten rid of Instead,
the loan is effectively re-issued but with better terms

3. What is Consolidation? To explain, consolidation means taking control of
existing debt by buying them out with a loan that boasts better terms
WIth regards consolidating student loans, this entails buying out the loans
taken out over 4 or 5 years of college living, centralizing them into one
loan debt and repaying that debt under one interest rate The
mathematics behind this exercise make it possible for a particular
graduate to save money, lowering the monthly repayment sum and, in
that way, lift some of the pressure off their shoulders What is perhaps
most important is that turning to this kind of financing to clear debts has
more advantages than simply making life easier There is also the chance
to increase credit scores, improve the credit status of the graduate over
time, and allow them to concentrate more on building their careers and
earning power by clearing their student loans

4. Advantages of Consolidation Loans As mentioned, the mathematics of
these kinds of loans make it possible to lessen the pressure on a
graduate while also offering a brighter financial future Basically,
consolidating student loans means pulling all of the individual loans taken
out while in college into one sum, then buying them out using another
loan Because the new loan has one interest rate, the repayments are
inevitably lower For example, one loan of $100,000 will have one interest
rate, with a repayment sum of perhaps $1,000 per month over 10 years
But previous to this, the situation was bleaker

5. Perhaps 4 individual loans of $30,000, $40,000, $10,000 and $20,000,
each charged at different interest rates, could mean total monthly
repayments of $1,300 Clearly, getting financing to clear debts is the right
step to take in such cases, but there are factors that need to be
considered before anyone signs up to such a deal After all, the move
needs to be beneficial before the student loans can be bought out
Factors to Consider Do your homework properly There is no point in
consolidating student loans if the repayments are higher

6. The process can be complicated, but try to keep the perspective simple,
that way the best decision is sure to be made Look at the balance due,
the term of each individual loan, and the interest rate charged Before
seeking financing to clear debts, it is essential to know exactly where one
stands but know what the effect a longer term would have also For
example, a 10-year repayment schedule may mean more in interest is
paid, westernsky but should lower monthly repayments, making it more
practical to clear the student loans

7. westernsky