When it comes to getting a better education, it’s not just about getting accepted anymore. The cost of getting a degree gets higher and higher every year. And, thanks to the current economic crisis, there are fewer and fewer families that can afford to send their children to college without some form of financial aid. For those who are lucky enough to have scored a few scholarships or qualified for grant programs, the cost of education is somewhat offset. However, for many, student loans are the only way to pay the cost of higher education.
Federal studies have revealed that the current economic conditions have not slowed the number of students entering college seeking a degree. However, fewer and fewer of these students have the financial backing they used to, launching the total student loan debt to over $986 billion during the first quarter 2013. And of this $986 billion, over $110 billion of that is past due at least 90 days. What does this mean to the general public? It means that those who choose to go to college to earn a degree simply aren’t making the paychecks they need to in order to pay back their student loans.
For some, the answer is student loan debt consolidation. This means that you take advantage of consolidation options that allow you to roll all of your student loan debt into one large loan. This loan, if it is a federal student loan consolidation, will take the weighted average of your existing interest rates to assign an interest rate to the new loan. You can extend repayment out up to 30 years, making your monthly payment small and your debt to income ratio much more manageable. Of course, you may wind up paying more over the life of the loan, but at least your loan repayment schedule is much more manageable.
Direct Consolidation Loans, which are only for consolidating federal student loans, do not have application fees, loan origination fees, prepayment penalties or other charges and do not require you to qualify for the loan like a private consolidation loan does. However, you lose many of the benefits that your existing student loans have to offer such as deferment and forbearance, forgiveness and cancellation options and so much more.
What if student loan consolidation really does make sense for you? Are there other options that can help you reach your goals?
Believe it or not, several private organizations have been formed to help students deal with their student loan debt loads. These student loan assistance programs gives them access to funds they can use to repay their student loans without going into additional debt. These programs allow those who have student loan debt the opportunity to apply for these funds, much like a scholarship or grant program. The main drawback here is that only two applicants are chosen per year, making it highly unlikely that you will be able to take advantage of this option. For more information, Please visit https://studentaid.ed.gov/sa/
Before you make another student loan payment, visit Consolidatestudent.loan. Consolidatestudent.loan is the leading online resource for student loan consolidation. They can help you combine your loans fast.