When should you consolidate Federal Student Loans? The time was Yesterday.
You’re fresh out of college ready to enter the work environment, but some time after you begin working, you get a bill and you realize the time of deferment is over. You are now held responsible to make sure that your student loans are paid, and more importantly, making sure they are paid on time.
If you’re like many Americans, who are hand to mouth, and struggle to get by, making these payments can be extremely stressful. Rent keeps on increasing, bills pile up, mail goes unanswered, and you seem to get nowhere. You’re probably multiple student loans and you have to remember to make payments to multiple places with different due dates. It’s extremely hard to get organized, and had you have known it was going to be this stressful, you probably wouldn’t of gone to school in the first place.
Similar to consolidation of credit card debt, Federal Student Loan consolidation takes existing loans and sort of puts them all into one, instead of paying multiple loans which can be a stressful event. For most Americans, student loan debt is a huge burden which never goes away. Federal loans do not have statute of limitations, and the government can go after your tax refunds and even garnish your wages.
Student loan consolidation extends the repayment period of the loans, and you might even pay less monthly than you were doing before.
Depending on your credit score, you might even qualify for a lower interest rate.
You might have already consolidated, and you have a consolidated federal student loan in default, if this sounds like you do not be alarmed, there is still programs to assist you to get out of default and eliminate the mark on your credit score.
The truth is, there is always time to consolidate your loans, and you shouldn’t be overwhelmed with the process. There are companies who help you in the preparation of federal student loan consolidation.
If you’re having trouble making ends meet, due to wage garnishments or tax offsets, then consider consolidate Federal Student Loans.