Important Tips on How to Consolidate College Loan Debts

0
142

If you have taken student loans to help you through college, you are normally given a grace period of up to 6 months. What if that grace period is almost over and you haven’t found a job yet? Or a decent paying one at that?There is the risk of your loans going into default. If this happens, your remaining balance will be rendered payable immediately, so this will get you into deeper trouble. What are your choices?You can apply for deferment or loan forbearance if you have federal loans. Private lenders should allow for negotiation as well. What if you have multiple loans amounting to over $10,000?You best option is to consolidate college loan debts. This way you get another lender to pay off your current loans and you will only be answerable to this lender. If you can consolidate your debts within the grace period, then you have a good chance of locking in a fixed low interest rate.If your debt consolidation is completed, you will usually be asked to start the repayment process to the consolidator in 60 days. Even if you are starting on a low paying job, the lower interest rate and monthly payment should still be affordable for you. So how do you consolidate college loan debts?1. Do comparison shopping of different lending companies to find the best one for you.
2. Gather up all information about your current lenders, the amounts you owe, payment dates and amounts, remaining balance, etc.
3. Choose your repayment plan.
4. Choose a repayment plan. There are various types of repayment plans you can choose from: Standard, Extended, Graduated, Income Contingent or Income Sensitive.Remember, before you consolidate college loan debts, you have to weigh all available options first and learn about the pros and cons of debt consolidating.