Student Loan Woes – Need Student Loan Consolidation

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Student Loan Woes – Need Student Loan Consolidation

Today’s students need to graduate with degrees in debt management. Consider these statistics from Consolidated Credit Counseling Services:
85% of undergraduate students have at least one credit card
41% of students carry credit card debt with an average balance of $3,071
39% of students now graduate with unmanageable student loan debt\1.3 of college seniors graduate with $20,000 or more in students loan debt
Just over half of students who used loans to pay for college say they feel burdened by their debt
73% of parents of graduating seniors said they expect their son or daughter to take a job at a salary that would require some sort of financial boost from them. Within that group, 38% said their child might have to move back home with them.
Only 44% of college students clearly understand the term budget

While credit card debt among students is a growing problem, it’s often tiny compared to the problem of student loan debt. Higher education costs are now so high that many students have no choice but to borrow. And they often borrow as much as they can, assuming that they’ll have no trouble paying the loan back when they start working and earning a salary.

Many students (and their parents) also assume a higher education will “pay off” with a higher salary or perks, regardless of the field they are entering. It’s not unusual for would-be schoolteachers or social workers, for example, to graduate with student loan debt of $30,000 or more.

Falling behind on a student loan can be expensive. The collection costs can be high, in addition to the interest you may already be paying. There is no statue of limitations for collecting most student loan debts. Unlike other debts where collectors have only a certain number of years to sue you, student loan debts can haunt you for years and years. Also, it is difficult to discharge most student loans in bankruptcy.

In additional, you will have trouble getting student loans in the future, your income tax refund may seized, you may be subject to wage garnishment without first being taken to court, and you will find it difficult to catch up as well as pay off that student loan debt in the future.

However, there is some good news. If you are in default and enter a loan rehabilitation program, then make 12 consecutive on time payments (note, you can’t be one day late on those payments!), you can bring your loan out of default. When you do, your previous late payments will be removed from your credit report. Another option for getting out of default is to find out whether it is possible to consolidate your student loan out of default.

Source: The ABC’s of getting out of debt - Sutton, Garrett

Student Loan Woes – Need Student Loan Consolidation

Avoid Bankruptcy and Free Your Debt . Get Refinance Loans , Secured Debt Consolidation or Debt Settlement Advices.