One minute you are an eager, hopeful freshman experiencing a whole new world and the next minute, you are a college graduate looking for a job. Oh, and swimming in student loan debt. And, don’t forget working two jobs just to make ends meet.
Can we just rewind to the eager, hopeful freshman and start over?
Along with that framed college degree often comes a lifetime of financial stress. Instead of losing sleep and swallowing antacids, there are options to help young people get out of student loan purgatory.
Student loan consolidation provides a chance to lower monthly payments and ensure that they are made in a timely manner. Not only does this free people up to actually answer their phones and go to the mailbox without fear, student loan consolidation helps to improve a person’s credit.
Poor credit when you’re young can leave a permanent scar on your financial future. Here is a look at some of the steps to take if you are struggling with student loans and want to free up creditors to pursue someone else:
Talk to your creditors
If student loan payments are becoming a monthly challenge, try talking to your creditors about the situation. People in debt often make the mistake of not answering the phone or ignoring letters from creditors regarding their loans.
Instead of sticking your head in the financial sand, try calling your creditors and explaining your student loan payment challenges. Calling creditors may not solve your problem, but it might. You never know until you make the call.
Creditors will sometimes move payment dates or try to find other payment relief measures to help borrowers. After all, a lending institution would rather have some form of payment than to have to write off a loan because of default.
Consider student loan consolidation
When your monthly payments are becoming such a burden that you are having difficulty making them, student loan consolidation is a viable option.
Student loan consolidation can eliminate multiple payments and can result in one monthly payment that is more manageable. If you have Federal student loans, contact www.studentloans.gov to find out about your student loan consolidation options.
For private loans, student loan consolidation should start with a search of lending institutions that offer this service. Not all banks offer student loan consolidation, so find institutions that do and contact them to shop for the best deal.
Every bank handles student loan consolidation differently. Be sure to ask questions like these before pursuing student loan consolidation from a private bank:
- What kind of interest rates do you offer for student loan consolidation?
- Are there any fees associated with student loan consolidation?
- Are there minimum credit score requirements for student loan consolidation?
- Is my college eligible for consolidation with your bank?
- What types of repayment terms do you offer for consolidation?
To learn more about your options, explore student loan consolidation with CommonBond.
