Monday, August 15, 2011

Consolidate Student Loan Debts

Student loan debt in the past have averaged $23,100 for students living on campus, $23,800 for students living off campus and not with families, and $18,000 for those students who lived off campus with their families. A lot of this student loan debt came from several agencies that specialize in providing loans for education. If someone is unable to find work right after graduation, it's next to impossible to meet the agreed-upon payments to clear his or her student loan debt. Some are obliged to take jobs that pay far less than they anticipated for a while, and that will prevent them from paying off their loans in a timely manner as well. The Department of Education and loan agencies are permitted by law to take up to 10% of student's wages if they are in default.

There are companies who will help get financing consolidated where there is more than one loan at a rate of 3%, with a 2.25% reduction after 24 payments if the total adds up to more than $20,000.00. These companies can help in other ways as well. Sometimes they negotiate a lower payment schedule, thus aiding the student in keeping the payments current. They will also work toward the reduction of collection fees if the student loan debt has been turned over to a collection agency. Another way they can help in some instances is to negotiate a suspension of payments for a period of time until the student is in better financial condition to take care of their student loan debts. In rare cases, they can arrange for a forgiveness of the debts, thus freeing the student of the obligation permanently. When looking at the total cost of schooling it is important to acknowledge the duration granted to pay this debt off and certainly remember 2 Timothy 1:7 "For God hath not given us the spirit of fear; but of power, and of love, and of a sound mind."

Late payments are reported to the credit bureaus. The online companies that assist in the ways mentioned above often help with the rehabilitation of a student's credit after the new arrangements have been made concerning student loan debts, thus helping the borrower to remain financially solvent. Some students work between semesters and have part-time jobs during the school year to gather funds for repayment. If their health or some other obstacle has prevented them from earning the necessary money to pay back their student loan debts, they will most certainly need the services of some advocate to get them through the process without severely impoverishing themselves.


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