Twenty five percent of all college graduates are looking for solutions to their large student loan debts. If students have trouble taking care of their student loan repayment, there are options to help them out.
First year college graduates usually find that it takes longer to find a job within the filed they had chosen to study. Most college students also find that a starting position is often unavailable and that the pay for most starting positions is much less than they had anticipated. Each student has a six month grace period from the time of graduation until repayment begins. Often, it takes most students six months or more to get a job.
New college graduates must employ several strategies when dealing with their student loan repayment. A first year grad might have to take on part‐time jobs or work for contract agreements on the side.
College graduates also need to keep their living expenses in check until they have located a suitable position. Graduates can live with a roommate, or consider a more modest apartment. New graduates should not move until they have located a new job. This makes it easier to move to the location that is closer to the new job.
Loan forbearance may be a short term solution for students in financial difficulty that harbors them from making loan payments. A forbearance is a temporary period of time when payment are suspended on a student loan after repayment has begun. The student must bit be able to qualify for deferment to be approved for a forbearance.
Another student loan repayment solution is student loan consolidation. All loans taken during school, even with the same lender, are considered as separate accounts and are billed in that fashion. When paid separately loans can cost a student upwards of $1000 per month.
Consolidation combines all of the students loans into one loan with one lender. Borrowers usually drastically reduce their monthly payments through consolidating. Most of the time consolidation can reduce monthly payments to around $100 per month.
Finally, it is important to remember that student loans are on a graduated repayment plan that starts the monthly payments at a lower level and increases the payments over time until the loan is paid. This usually helps graduates to deal with cash flow issues when they first graduate. Regardless of financial conditions, the student must always be aware that their student loans have to be repaid in full.