| A sad fact with university life is that you are bound to | | | | exactly what you're dealing with. |
| spend large amounts of money just to scrape by. | | | | If you've been given the loans by a bank or private |
| Often, the money required to finish a degree is money | | | | lender, make sure that all the documents regarding the |
| students simply don't have. Even if students work two | | | | loans are intact. All receipts and communications should |
| or three jobs, scrubbing greasy pans every night, the | | | | be kept in individual files for easier reference. You |
| money would be too difficult to accumulate on time. | | | | would need all these also if you plan to approach a |
| This is why student loans exist. Student loans allow | | | | financial advisor for help. |
| students to spend the money that is not technically | | | | For federal loans, it would also be helpful if you read |
| theirs; they're given the money with the confidence | | | | the published guidelines and checklists for the |
| that after college, they would be able to repay the | | | | repayment and consolidation of debts. These |
| money. The problem is that the repayment rate is far | | | | documents can easily be found in national websites. |
| too large for fresh graduates. | | | | Consolidation |
| Know Your Debts | | | | Consolidation is by no means a simple matter, but it |
| The first step to reducing any form of debt is to be as | | | | can certainly help those students that have no means |
| familiar with the debt itself, as much as possible. A bad | | | | to repay a large amount at the end of the month. |
| habit with college students is that they don't think of | | | | Again, the crux of being consolidated is you don't have |
| organizing all the important documents that pertain to | | | | to deal with rapid changes of interest rates. You're |
| their loans immediately. Some don't even bother to | | | | bound to just one low rate. |
| read the documents thoroughly; all they know is that | | | | Federal loans are by law fixed at a certain percentage |
| they owe someone some cash. | | | | (often, fixed at 8%). If being consolidated means |
| This is not wise borrowing. A wise borrower is aware | | | | getting only 7%, you might want to reconsider. |
| of his credit history, the interest rates involved and the | | | | Remember, federal loans are consolidated by the |
| potentially large amount of money that would be due | | | | government. Private loans are consolidated by private |
| at the end of the grace period. Some university | | | | institutions. |
| graduates open their documents after the end of a | | | | Private consolidation is slightly different from federal |
| long haul and discover they owe $70,000. That's a | | | | consolidation. For one, the consolidating institutions |
| pretty nasty shock. | | | | would be basing the computation of the interest rate |
| Specific Resources | | | | on your current living conditions. |
| You may pay the student loan website of the United | | | | In addition, market conditions would have an effect on |
| States government to find out just how much you | | | | the computation. It might be a good idea to use reliable |
| owe, and the nature of your individual loans. Being | | | | online loan calculators to find out just how much you |
| consolidated would be much easier if you knew | | | | would be possibly paying after being consolidated. |