Often Loans Are Sold To Other Companies

Category: Finance, Credit.

A recent poll of more than 1, 500 college graduates give some insight to the challenges faced by college grads as they struggle to pay back their loans.

It s important to take an inventory of all of your loans to know when you must begin repayment. Because of the burden, 44 percent said they delayed buying a house, 28 percent postponed having children, 27 percent skipped medical or dental procedures and 32 percent said their loans forced them to move back into their parents home. Usually a student ends up with five to seven loans at graduation. You will also need to keep or get current contact information with the lenders. Each loan can be for a different amount and carry a different interest rate. Often loans are sold to other companies. Next you should contact a consolidation company.

You will need the amount of each loan, the address for the payment, when it should begin, the interest rate and if it is a Federal or private loan. They can help you go from having many payments to a single payment. Next is to set up a repayment plan for your student loans on a schedule that you can manage. Also, you replace your variable rate loans with one single loan with a fixed interest rate. Since you will be living with these payments for ten years or more, you need to make sure you can afford to make them on- time. Choosing your consolidation company will be important also for they offer different benefits. Since loan consolidation is allowed only once, you have to consider your options carefully.

Some will offer to reduce your interest rate, others will offer cash rebates and still others will offer additional benefits. There are still other loan payback strategies such as Uncle Sam. Those students with federally subsidized Perkins loans should think hard before consolidating their loan due to the terrific benefits provided to them such as loan- forgiveness or partial forgiveness for entering into teaching, or the military, law enforcement. You can always count on the military to provide some of the best educational benefits around. If you join the U. Peace Corps and have a Perkins loan you receive a 15 percent cancellation off your loan per year of service. Now more than ever, teachers are in high demand.

After two years of service 30 percent off your loan and so on. To help fill the need many states are offering incentives for teachers that include loan payback or cancellation. Some companies and state government have payback programs of their own. Government programs have great ways of paying off your loan debt. Check with your school s career and recruiting office.