Debt Consolidation Solution
A Debt Consolidation Solution for Student Loans
In the U.S., student loan debt is staggering. According to the U.S. Federal Reserve Bank, there are over $914 billion in outstanding student loans. Over the past four years, student loan debt has soared, increasing by 50 percent. The future may look grim for those whose student loans are in default; not only are debt collectors nipping at your heels, but student loans can't be discharged in bankruptcy. Indeed, you can face garnishment of your wages and your tax refunds if you fall too far behind in your federal student loans.
However, there is a debt consolidation solution for those who have federal student loans. In fact, the Higher Education Opportunity Act provided for a debt consolidation solution for federal education loans taken out in [statetitle] or any other state. Essentially, a student loan debt consolidation solution makes sense for people who aren't able to make monthly payments and want to avoid a default situation, or who are already in default. It may also be a good move if you have loans with a variable interest rate and want to consolidate into a single, fixed interest rate loan. On the other hand, if you're almost finished paying off your loans, it probably doesn't make sense to look for a debt consolidation solution.
Whether you live in Springerton IL or anywhere else in the country, a student loan debt consolidation solution can mean that you need to make only a single monthly payment, and may mean that you can enter into a repayment plan that aligns more closely with your current financial situation. With consolidation, you may even have another shot at deferment.
Typically, people who have Federal Family Education Loans or Direct Loans are eligible for a debt consolidation solution. Sometimes, those who have both federal and private loans can still consolidate under the federal consolidation program.
If you live in Springerton IL and are considering a debt consolidation solution for student loans, it's best to start by reviewing the information on the U.S. Department of Education website. It will tell you the documents you need to have, allow you to apply for consolidation online, and check the status of your application.
Debt consolidation makes sense for many federal student loan recipients. Being proactive about consolidation can help you avoid the fees and penalties associated with going into default, while allowing you to make affordable monthly payments.