Student Loan Consolidation
School loan consolidation solutions
As every student well knows, college is very expensive these days. Not many students are able to make it through a four-year degree without accumulating some debt, and many students finance their entire educations through student loans. A lot of young people coming out of school aren't able to land well-paying jobs right away, and some can't find gainful employment at all. So what are you to do when the lenders come calling for student loan repayment?
If you're lucky enough to have a full-time job, the good news is that you may qualify for student loan consolidation. This can be a viable option if you owe money to various creditors, such as the federal government, your school or private lenders who helped you pay your tuition.
How Student Loan Debt Consolidation Works
School loan consolidation works much the same way consumer debt consolidation loans do. The consolidation loan covers all current outstanding student debt, and you become responsible for repaying the financial institution that extended the consolidation loan rather than your individual creditors.
The key advantage of using student loan refinancing strategies to consolidate education-related debt is that you simplify your repayment schedule. Rather than having to manage multiple payments to creditors, each of whom has different interest rates and amortization periods, you only need to worry about one loan.
Who Qualifies for Student Debt Consolidation?
Though exact eligibility requirements vary from lender to lender, student loan debt consolidation is generally only available once you're no longer enrolled in school. Some lenders define enrollment as 50 percent or more of a full course load, while others won't let you consolidate even if you're only signed up for one class.
Also, you must either be actively repaying your loans or be in the so-called "grace period" that's normally extended to students. The grace period usually covers a six-month stretch of time after graduation. You also need to meet the lending institution's minimum debt requirements; usually, you'll only qualify if you have $10,000 or more in outstanding student loans.
Entering the workforce is stressful enough without worrying about managing a confusing slew of student loan payments. School loan consolidation offers a viable alternative that can save you money in the long run.