What is the best college loan consolidation advice? It’s pretty simple. Do it as soon as possible. Consolidate college loans as soon as you think you’re going to need extra time or more breathing room to pay off your student debt. Do not put this off.
Most student loan payments typically begin 6 months after you graduate from college. Here’s the thing– there’s no guarantee that you’ll even find the perfect job or any job for that matter, after only 6 months. There’s even the chance that the 6 months will fly by so quickly that you won’t even realize the time to pay back your student loans is here.
What inspired this post on consolidating student loans? I want to share a quick story with you guys.
A friend of mine recently reached the 6 month point from his college graduation. He was unable to ask for an extension on his student loan repayment or to consolidate his student debt. Before he knew it the 6 month mark came and left, and he found a nice surprise. Since a major student debt of his was a government loan, the government just took the money out of his account without informing him. Yes, that’s right. The government took the amount from his bank account without informing him. This could be really frustrating, especially if you’re already living on a tight budget.
If you’re still undecided as to what to do with your student loans, let’s take a quick look at the pros of consolidating your student debt:
1. More time to pay it your student loans.
You’ll have less pressure to find a the perfect job after college. There’s no guarantee that you can find a job that pays okay and offers decent growth potential. You also don’t want to force yourself to accept a job that just “pays the bills.” You’ll be miserable. You won’t be happy. Worst of all, you might start living paycheck to paycheck.
2. Simplify your finances.
You can hold all of your student debt in one place. Instead of having to keep track of different payments, you’ll only have to make one monthly payment. This will free up some time in your schedule and allow you to have a much simpler financial system.
3. A little financial breathing space.
Lower payments mixed in with more time to pay off your student loans, makes student debt consolidation an attractive option. Some college graduates will want to try starting their own business. Others may want to travel the world or word abroad. Either way, everyone deserves some space with their finances.
If you have recently graduated from college with student debt you’re going to have to make an important decision as to whether you should consolidate your student loans or not. In my opinion the best student loan consolidation advice is to get it done as soon as possible. If you are a recent college graduate with lingering student loans, then now is the time to figure out what you will do with your loans. Will you start paying them off separately or will you consolidate them?
Extra help on consolidating your student loans:
General advice on consolidating student loans.
Is student loan consolidation right for you?
What you need to know about student loans.
Paying off student debt early.
Student loan debt vs mortgage debt vs saving.
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{ 3 comments… read them below or add one }
Wow, reading that the government can take money out of your account is crazy. This post is great as a reality check for students.
Thankfully in the UK student loans are set at the rate of inflation (currently at 0% as the UK is slightly deflationary at the moment) and are linked to income so if you’re not earning over £15k you don’t have to pay a penny.
Keep up the great work though -for those students with non-UK loans this kind of post is exactly what’s needed.
Pretty scary, huh? I should mention that this story occurred in Ontario. So college graduates in the UK or other places around the word don’t have to worry about similar situations.
Is that true? The thing you mentioned about not paying a penny if you earn less than 15 grand is very interesting. How does the government deal with college graduates (with student loans) that remain unemployed for a lengthy period of time?
Pre 1998 loans are not paid back until you hit a certain threshold but once you do you have to keep paying them. In my comment above I was referring to the new system: anyone who graduated after 1998 doesn’t have to pay anything if theyare not earning an income.To answer your question, the government simply doesn’t get it’s money (well its the student loans company but that’s just a ‘front’ for the government.
I guess it’s a political move to encourage higher education so the government is willing to take the hit on those who ‘default’ on earning an income.