As a student approaches graduation they begin to search in earnest for the perfect job. This is also the time to find good student loan consolidation advice. Finding a quality job during this time of economic stress can be a real challenge. A college or university degree will help a great deal. However many recent graduates find that companies are looking at more than just a good education when comes to hiring.
In fact many new graduates are surprised to find that they must submit their credit history as part of the job application process. Many employers equate a poor credit history with a poor potential employee. In fact many recruiting services have found that people with good credit histories make better employees.
People who are able to manage their personal finances generally are able to manage their job better. Research has shown these individuals are more productive, miss less work and are much less likely to leave a company. Hiring a new employee is very expensive in terms of both time and money. Obviously a company is going to look for the best investment and many times it is the applicant with a good credit history.
If you are a typical student then you are carrying both consumer and student loan debt. Education is expensive and that is why few people are able to pay cash for their education. It is not uncommon for a recent graduate to acquire $30,000.00 in student loan debt by the time they receive their diploma. In addition many also have credit card debt exceeding $10,000.00. All of which impacts your credit score and history. Frequently the more loans you have outstanding the lower your credit score will be. Despite the heavy debt load you can do things that will improve your credit history. Probably the most important is to stop using credit cards and start using cash to make daily purchases. Yes this is going to be tough but if you are a good manager you can do it. Make sure you pay all your payments on time and always pay more than the minimum payment. Even paying a few dollars more each month will have an impact on your credit score and history.
Your student loan payments will in most cases be deferred until you graduate. However shortly after graduation you will be required to make a payment on each of these loans each and every month. This can mean that you may be making several payments each month. A smarter alternative is to seek good student loan consolidation advice. Consolidating all you loans into one convenient loan makes sense in terms of loan management and reduced cost.
Frequently a loan consolidation can save you several hundred dollars a month in payments at a time when your income is low. In some cases you can even combine all your consumer debt including credit card debt and student loans into one loan package. Consolidation will not only lower your payments but increase your credit score. Each student loan program is unique and so it is important to talk to your student loan lender well before graduation.
Again seek student loan consolidation advice from your college student financial services office and your student loan provider. Stop using credit cards and pay your month payments on time with more than the minimum payments and you will improve your credit score and history. Proper management of your credit history can yield benefits when it comes to finding the best job after graduation.
By: Jim Kesel
Posts Tagged ‘Recent Graduates’
Student Loan Consolidation Advice and Good Credit Score May Help You Find a Good Job
June 21st, 2010What Types of Student Loan Consolidation Programs Are Out There?
June 14th, 2010
Student loan consolidation refers to the process of taking the many accumulated student loans that you are paying on and refinancing them into one larger debt that encompasses all the loans that you have received over the course of your educational career. Many students choose student loan consolidation because they have become overburdened with a mound of student debt that threatens to ruin them financially. Fortunately, student consolidation is a way out of debt for many recent graduates and others who are paying on their long term loans.
One Loan, One Lender, One Payment
One of the most irritating things about them is that they are usually written over the course of four to eight years of education by a plethora of different lenders, lending institutions, and lenders. When a student enters the repayment period of their student loan package, which is usually anywhere from six to nine months following graduation, or within the same time period after leaving school or college or going below half time enrollment, they realize that they must send in a number of payments to a number of different places. This can be confusing and costly. With student loan consolidation, one payment is made to one servicer once each month.
Lower Your Interest Rate To Save Big
Students also realize over the course of time that they may have also agreed to a wide range of interest rates on their obligations. Some may be written by private lenders who charge much higher rates of interest than government loans. When consolidating, many students are surprised to learn that the interest rates are very competitive. This reduction in overall interest paid is one of the biggest reasons that smart borrowers choose consolidation in the first place.
Keep More Money In Your Pocket
Student loan consolidation can free up the income that the recent graduate or other previous student has at their disposal for purposes required by everyday living. Many folks are happy to find out that their loan consolidation payment is much, much less than the total of the combined payments that they were struggling to make with their original lender and loan companies. This leaves the borrower with more money from their paychecks to use for other purposes. The domino effect of loan consolidation may be that borrowers are not forced to rely on credit cards to pay their everyday expenses, leading to becoming even further burdened by debt into the future.
Avoid Default And Bad Credit Ratings
Last of all, student loan consolidation is a lifesaving process for those who are threatened with the prospect of defaulting on their student loan obligations. Defaulting on a student loan can have longer term repercussions on the credit file of the borrower, and can cause their overall credit rating to plummet, affecting their future ability to borrow needed money or to purchase a home. Additionally, defaulted student loans can cause the government to offset any refund monies that are due to the borrower from the U.S. Treasury when the borrower files their personal income taxes. Wage garnishment is another possibility for those who are in default. Student loan consolidation can put an end to these worries.
By: Mary Wise
Government Student Loan Consolidations Can Help With Your Debt
April 24th, 2010
Student loan consolidation can help recent graduates who are overwhelmed with student loan debt. If you have federal student loans you will want to look into the federal government’s student loan consolidation program. This program was put in place to help individuals to be able to consolidate multiple student loans into one. Over the years, this program has helped many college graduates save time and money. Let’s take a look at how the program works.
If you are looking to consolidate your federal student loans you will need to fill out an application on line, or send it in the mail to see if you qualify. To qualify you need to have a combined total debt of $20,000 or more on your federal loans and not be in default on any of them. You do not however need to be employed, have collateral or need a co-signer to get approved. For most graduates the process is simple and takes about 60-90 days.
Once you are approved you will enjoy many benefits. First you will have simplified finances. You will no longer have multiple student loans showing up in your mailbox every month. With your student loan consolidation you will also enjoy a reduced monthly payment sometimes as much as a 50% reduction. This is because you will be able to stretch your loan repayment out over a term of up to 30 years. This will allow you to have a budget friendly payment which can be very helpful for recent graduates. You can now use your monthly savings to pay for other living expenses. As an added bonus it will also improve your credit score.
There are some additional benefits that you will also like. There are no fees to set up your consolidation loan, and no fees to pay off your loan early. You can also, under certain circumstances, defer your loan for a term of 36 months. If you decide to return to school full time you can also be able to put your loan in deferment.
As you can see student loan consolidation is a great way to help you manage your debt. If you have recently graduated and are struggling to make all those monthly student loan payment, you will most definitely want to file an application today.
By: Becki Andrus