Student Loan Consolidation – The way out of your student loan debt hell
Decades ago, college education was quite inexpensive and it was a certain ticket for the middle class. But today all of this has changed and has become so expensive that people are not being able to afford their higher education. Living in a state that dons a double digit unemployment rate, both the students and their parents are failing to make ends meet with the limited amount of cash that they have in their hands. Most students are running to the Federal educational loans that can help them get back on track with student loan consolidation services.
However taking out too many federal educational loans are pushing them towards the student loan debt hell. It is not that there are no debt help ways for the students live debt free, but you have to take the right financial steps.
Have a look at the ways you can pay off your debts through federal loan consolidation.
- Single lender and single monthly payment: You must be tired dealing with the multiple monthly payments that you had to make to the multiple organizations from which you had taken out the educational loans. After you consolidate all your loans, you will be liable to make a single monthly payment to the US Department of Education and this will be disbursed off to your creditors in due time.
- Wide array of repayment options: As you’re a student with a limited source of income, the federal government has arranged a wide variety of repayment options that they can resort to while repaying their loans. The most used repayment option is the Income Based Repayment Plan and the Income Contingent Repayment Plan. The students are even allowed to change from one repayment plan to other that can be tailored to meet your financial needs.
- No minimum loan amount for consolidation: Mostly you will see that the debt consolidation companies ask for a maximum or minimum loan amount for being able to qualify for the loan. But if you wish to take out a federal debt consolidation loan, it is most likely that you will not have to show any maximum or minimum amount for being able to qualify for the loan. With any amount of debt that you owe your lenders, you can get a federal student debt consolidation loan.
- Revised monthly payments: The monthly payments on your loan will also be reduced as the loan will carry lower interest rates than the combined interest rates on all your federal educational loans. You can repay the loan with easy and affordable monthly payments without causing much stress on your wallet.
Therefore, if you’re a student who has amassed a huge amount of student loan debt, you can seek debt help from a federal debt consolidation loan. Reap the above mentioned benefits and boost your credit score to remain creditworthy in future.