Under such economic climate and even before, there is rarely a college student who can make it to graduation day without having to take out a student loan. Of course, in college, there are many things to buy and pay for so those who have very little money would need the extra financial support that a loan can provide them with. It may seem easy whilst you’re still in school but many students realize the real burden of these loans after graduation when the pay back begins.
Think about it, you’re fresh out of school and most likely you’re still looking for a job. The pressure of having to keep up with the monthly payments that you are obliged to pay would weigh heavily on your mind and needless to say, you will spend a good amount of your income trying to pay off these debts. Luckily, there are certain things that you can do to help ease thus burden. For example, you can choose to do a federal student loan consolidation which would significantly turn things around for you.
If you’re considering giving it a try, there are two options that you can look into. The first of which would be the federal family education loan program and the second one would be the federal direct student loan program. Both programs were created to assist you if you owe federal loans that were given the US Department of Education guarantee. This would include the Perkins loan, Stafford loan and Parent PLUS loan. Both the above mentioned consolidation programs are offered at a fixed rate which basically means that you rate would neither increase or decrease for the entire life of your consolidation loan.
Another great thing about choosing to do a federal student loan consolidation is the fact that under its programs, the terms for repayment are a lot flexible and longer than most other types of consolidation loans. In fact, repayment periods under this program can be as short as ten years or can go as long as thirty years. Of course, choosing the longer life span would make your monthly payments lower and thus it is easier to come up with the payment for it.
Of course, there are certain negatives to this kind of consolidation as well. A lower monthly payment does sound good but if it stretches for too long your loan can actually start to increase and cost more because of the interest you’re charged with. Another disadvantage would be the fact that the government facilitated federal student loan consolidation programs can only include student loans and nothing more. Thus, the students who have existing loans with various private lenders would not be allowed to include those to their consolidation loan.
So, should you give it a try? Depending on your preferences, your situation and the kind of student loans you have then you could consider it. Better yet, talk to an expert who would be able to advise you about the best options available to you. After all, who better to give you the information you need other than these people.
Speak Your Mind