COLLEGE LOAN CONSOLIDATION BRIGHTENS YOUR FUTURE

2007-03-08 10:33:40

( Financial )



The increase in the number of students burdened with multiple school loans prompted lenders to offer college loan consolidation. College graduates face problematic level of debts even before joining the professional labor force. Financial burdens right after college prevents most young professionals from fully enjoying their monthly income. A considerable amount of earnings is appropriated to credit payments. Most forgo plans of starting a family and prefers to pay debt first. House mortgage, children’s education and family health insurance are the costs foreseen in starting a family, which will result to more debts.

College loan consolidation eases financial burdens of young professionals with burdensome college loans. New loan is locked into a single fixed interest rate with the probability of extended repayment period. Fixed interest rate is favorable compared to variable rate particularly if you decided to consolidate when interest rates are still low. Student loan has low interest rates that vary across periods. Its variability is expected to go on an upward trend across the years. The amount of your repayment under a fixed interest rate is not at risk of increasing in the future. Stable amount of repayments allows you to plan for additional expenses without risking your future financial stability.

All your college loans are combined under college loan consolidation. The period of repayment is extended resulting to lower monthly repayments. Smaller monthly repayments allow you to increase appropriation of your earnings to other essential expenses. Also, it allows you to save more and eventually use it to fund after college settling expenses. Financial independence gives you focus on planning your career and forgo accepting jobs you don’t like. You do not have much career choice when you are not financially dependent. You are forced to get jobs you don’t like to earn money to pay your loan.

College loans are usually payable in 10 years but this period can be extended when you consolidate. You have the option, though, to stick to the 10-year repayment period if you want to repay your loan in shorter period. Shorter repayment period entails higher monthly repayments but still lower compared to other loans.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.