If you are going to graduate from college soon or have recently graduated, chances are high that you have a ton of student loans that will need to be paid back. It's pretty nice when you are still in school, since most of those programs don't require that you start making payments on the loan until after you graduate. But after you graduate, it may come as a very rude awakening that you now need to start making payments on that huge figure, which could be as much as $40,000 or even more.
Hopefully while you were in college, you also had a credit card in your name and made regular payments so at least you've got a good start on having a decent credit score. This is important because as you start to enter the very competitive job market, more and more employers are starting to look at a job candidate's credit score as one of the factors to determine if the job should be offered, and if so, at what salary.
But a huge downside here is that can you maintain your good credit score now that you are taking on payments on that huge college loan bill? If it starts to tarnish your credit score, even at the low interest rates that many student loans carry, chances are good that your future job promotion opportunities will be diminished as your credit score starts a downward spiral.
There are many ways to approach this situation, but one of the easiest and often overlooked options is a college loan consolidation program. This is significantly different from a personal loan, because with a personal loan, you are given the money and expected to put it all on your student loan bill. The temptation to skim some money off the top of that loan and put "most" of it instead of ALL of it on your student loan is frequently too difficult to resist. Besides that, getting a personal loan for that huge amount of money is going to be almost impossible, especially at the extremely high interest rates you would get, which would almost certainly be much higher than the interest rate on your existing student loan.
A college loan consolidation program can help. You are not given the money up front, so the temptation to spend it elsewhere is not an option for you. As long as you are making regular and timely payments to the debt consolidation loan company, your student loan obligations are being met, and your credit score and credit report do not suffer.
So why get into a situation where it appears that you are borrowing from Peter to pay Paul? The biggest advantage with a student loan consolidation or college bill consolidation program is that typically your monthly payment amount is less, sometimes significantly less than if you did not enroll in the program. Remember, part of the whole equation here is to lessen the amount of money going out of your pockets every month, and a college loan consolidation can do that for you.
Don't allow yourself to be at a disadvantage in today's job market by having this huge debt hanging over your head. Look into a college loan consolidation program to give yourself the financial breathing room you need as you venture into the real world.
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Frequently Asked Questions
If I go into foreclosure on my property will this ...
By: Just Need to know | 13-05-2008
If I go into foreclosure on my property will this affect credit card rates on my existing cards. Can they raise my interest rates because of foreclosure?
I am on H4. Pursuing MBA and have 4courses to go ...
By: Pradeep2008 | 09-05-2008
I am on H4. Pursuing MBA and have 4courses to go (12credits). I am planning to apply for F1 this month. adviser suggested to take a break in summer and if i get F1 can do 3courses in Fall and one course in Spring. That way i will miss the H1 application deadline for 2009 as spring ends on April 27. Can i take just 1course in summer now and 3 in fall and then if i get F1 can i just take one additional course in Spring to fulfill requirement?
I have 2 charge offs by gmac for repo of 2 cars ...
By: whoknew | 27-04-2008
I have 2 charge offs by gmac for repo of 2 cars, This occurred back in 1997-1998. They did not charge off until 2003 so the 7 1/2 years start from charge off. Can they legally wait 5 years to charge off. This is the only items on my cr and i would like to get them off. The start date of reporting is 10/1998
How do i maximize from a debt consolidation loan
By: matteoandian | 20-04-2008
how do i maximize from a debt consolidation loan
Grants
By: mek72 | 19-04-2008
yes i would like more info on how i can get grants for myself. i do see that you guys have alot of options for grants,but when im trying to get more info you have to submit a credit card to get more info. Do you have a 1-800 number so i can talk to a live person there are alot of scams going on an i dont want to take part in any im already in debt dont need any more. so i need some info on how i can qualify for grants please i have tried alot of companys but i have not been able to get much help please help me.
Running Another Person's Credit Report
By: Oshi | 15-04-2008
Can you run another person's credit report? Do they need my permission to do this? How can I stop someone from running my credit report?
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