| The fun and games are at an end and now the | | | | private sources that are usually more expensive than |
| seriousness of your student loan debt has hit you like a | | | | government loans. |
| ton of bricks. Most students exit college nowadays | | | | If You Are Strapped Financially, Consider Forbearance |
| with a massive pile of student debt waiting for them | | | | While it is not a good idea to let your student loans go |
| on the other side, which is when the money that they | | | | into forbearance unless you absolutely have to, |
| have borrowed looks more real to them and they | | | | sometimes forbearance is the only option that |
| begin to become anxious about how they will ever | | | | students have if they are unable to get a job. |
| repay it. Many students end up with enough debt that | | | | Remember, however that forbearance (which allows |
| they could easily pay a mortgage off sooner than the | | | | you to forgo making payments on your loans for |
| debts that they have racked up during four, six, eight | | | | particular amount of time) does not last forever, and |
| or even more years of education. There are simple | | | | eventually you will need a good plan to get your debt |
| solutions, however, to putting your debt on the right | | | | paid off. |
| track. | | | | Student Loans Will Not Go Away |
| Consolidation | | | | Unlike many types of debt that can be gotten rid of |
| One of the most important things that any student | | | | simply by filing for bankruptcy protection, your student |
| who is ready to go into repayment can do is to | | | | loans will follow you around for the rest of your life. |
| consolidate their many, many student loans into one | | | | You cannot file bankruptcy on your debt, and student |
| loan and then repay one lender. Not only does this help | | | | loan debt that goes unpaid can cause you serious |
| you avoid the confusion of paying off four, five, or | | | | financial problems, such as garnishment of your wages |
| even more servicers, it also helps you to typically | | | | when you get a job, liens against any property that |
| finance your entire debt under one (hopefully lower) | | | | you own being filed, and your credit score plummeting |
| rate of interest. Many students end up with more than | | | | to the point that you cannot even get a credit card. In |
| one lender by graduation, and some have nearly a | | | | some instances, if you become legally disabled, you |
| dozen. This can lead to confusion, a lot of paperwork | | | | can have your student loans forgiven. Otherwise, you |
| to do when paying bills off each month, and varying | | | | are going to have to pay the debt you have incurred |
| rates of interest. By consolidating, you pay one rate of | | | | back. |
| interest on everything that you owe for your education, | | | | As you can see, not paying your debt is not an option. |
| which streamlines the payment process and will likely | | | | For these reasons, you must craft a repayment plan |
| save you a heap of cash. This is especially true of | | | | that involves getting rid of your debt through |
| consolidating student loans that are obtained from | | | | repayment or student loan consolidation. |