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 ‘Student Loan Consolidation’
Student Loan Consolidation Advice and Good Credit Score May Help You Find a Good Job
June 21st, 2010Is Student Loan Consolidation Good?
June 20th, 2010
Consolidating your student loan(s) is one of the smartest things that you can do. You should consider a student consolidation loan if you have several federal student loans or even just one large one.
Student consolidation loans will have fixed interest rates which are similar to those of the loans that are being consolidated. The amount that you can save through consolidation can be up to 58%.
Federal Stafford loans, Federal Direct Loans, Federal Perkins Loans as well as many others can be consolidated. Most of the time, they already have low rates.
Advantages
- You will have a single loan payment which is often lower than what you currently pay.
- It is easy to set up.
- It will help lower your debt burden.
- You can secure the lowest interest rate at the time.
- It can help you qualify for new or renewed deferments.
What To Consider
When you consolidate, make sure that the interest rate that you are offered is lower than your current rate. You want to pay off your student debt easier and maybe quicker too.
While consolidation can simplify the loan repayment process and lower your monthly payment, in the long run it usually increases the total amount that you will have to pay.
Student loan consolidation provides lower monthly payments by allowing you to spread the loan over 30 years in some cases. You are paying more payments, so be sure to compare the total cost of repaying your unconsolidated loans with the cost of repaying them through the consolidation loan.
The process of consolidating is very flexible. Consolidation is available from before you graduate down through years of repayment.
First, you need to gather information about your current loan. You need to know the balances and the interest rates, the names and addresses of companies and the names and addresses of personal references. The National Student Loan Data System can help provide you with the information that you need since it holds the most complete and accurate information for federal loans.
Paying Them Back
You will have 2 options to pay these loans back.
1. Pay a standard amount each month. This will include principle and interest. This is the lowest cost of interest paid way to go.
2. Or a graduated repayment. Here you start with lower payments that are only interest, but then they will keep increasing.
Usually repayment of your consolidation loans will begin in 60 days and will take from 10 to 30 years to fully pay back.
There are some questions that you should ask the lender before going forward.
- is there a rate reduction, for example for making your payments online or on time?
- does the loan meet your specific needs?
- is that the best interest rate available?
To get a student loan consolidation, you can still be enrolled in school or graduated. Either way, you’ll find many lending options that will fit your needs.
By: Ron King
What 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