College Graduations Bring Decisions About Student Loans

[Jul 17, 2007.]

 

A number of college graduates are venturing into the job market this summer, hoping to earn enough money to start paying back their student loans.

Experts say the typical college graduate has a number of student loans to pay back, given the expenses of tuition, books, and housing. Of course, it can be daunting trying to pay on several loans at once. For instance, it means keeping track of a number of different loan payment amounts and several interest rates.

As a result, many college graduates this year may be considering student loan consolidation. With this technique, college alumni combine several loans into one. Financial experts say there are many advantages to such consolidation. For instance, it can make it easier for new graduates to balance their checkbooks, since they only have to make one monthly payment. Also, they can save money in the long run, since the consolidated loan may offer a lower interest rate.

In addition, students may find that the lender will be giving them more time to pay back their loans. As a result, they may feel less of a financial squeeze, particularly at a time when their earnings may not be all that high. Consolidating student loans may also help a student's credit rating. That's because, with only one student loan payment to keep track of, a student is less likely to pay late or miss a payment. Late or missing payments can wreak havoc with a student's credit score, so they should be avoided at all costs.

Experts say student loan consolidation is a relatively simple, straightforward process, so it's nothing to worry about. In fact, a lender can easily guide a student through the process via phone or online. Typically, the consolidation process today lasts 45 days or less. Therefore, time should be on a college graduate's side when it comes to consolidating student loans.

Julie Ann Amos
July 17th 2007

Recent Student Loan News

• State to Offer Students a Financial Incentive on Loans
  A number of government entities these days are trying their best to make school financing a bit easier for college students. [July 17th 2007]


• Congress Poised to Tackle Student Loans
  The $85 billion-dollar student loan industry is now under Congressional scrutiny. Education committees in the Senate and House have O.K.'d legislation designed to overhaul the country's student loan program. The overhaul is designed to help increase financial aid to students and make it easier for recent college graduates to repay their loans. [July 15th 2007]


• Student Loan Financial Group Announces Rate Increase
  Student Loan Financial Group says interest rates on variable-rate student loans will rise eight basis points to .08 percentage points on July 1 st. Therefore, student borrowers with older variable-rate loans are being encouraged to apply for loan consolidation by June 30 th to take advantage of the lower rate. [July 15th 2007]


• Experts Offer Financial Help to College Students
  Now that summer's here, high school students may have some extra time on their hands. And financial experts note that this may be the perfect time for students thinking about college to plan out their financial strategies. [July 13th 2007]


• Financially-Smart Strategies for Summer
  With the arrival of summer may come the temptation to go on a shopping spree—at your vacation destination, on the Internet, or at your local mall. However, financial experts recommend being financially smart this summer by following some tried-and-true credit management techniques. [July 11th 2007]


• University Settles Student Loan Case
  Columbia University has agreed to a settlement in connection with its role in a nationwide student loan scandal. [June 29th 2007]


• Student Loan Rates to Rise Only Slightly
  There's good news on the interest rate front for college students. The rates on the two major federal student loan programs will increase only slightly this year, making a college education a little more affordable. [June 16th 2007]


• Student Loans Well Worth the Cost
  At a time when you may be feeling as if you need to take out a loan in order to pay the costs of your daily commute, you may be wondering whether it's worth it to go to the trouble and expense of taking out student loans. [June 14th 2007]