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College Loan Consolidation Can Be Beneficial to Post Graduates With High Debt Levels

College loan consolidation is an option for post graduates carrying high debt levels. By consolidating multiple loans graduates can reduce monthly payment amounts, obtain a lower rate of interest, and eliminate the stress of managing multiple payment dates.College loan consolidation is available for both private and federal student tuition. Private lending encompasses funds borrowed through family or friends, lending institutions, credit card companies, or SallieMae.Federal student tuition can include Stafford, Federal FFELP, Federal Direct, Perkins and Parents PLUS. Students with federal and private loans can consolidate into one account. Federal payments must be tracked and verified, so consolidation lenders require applicants to take out two separate loans. However, students will pay one monthly payment and the financial institution monitors and reports account activity to government lenders.Student loan consolidation can be exceptionally beneficial for graduates carrying excessive education debt such as medical, chiropractic and law school. Maintaining college lending financial obligations and payment schedules can be challenging. By consolidating multiple loans into one, students can improve their chances of adhering to repayment criteria and maintaining good credit scores.Students who obtained unsubsidized education loans must pay interest payments from the date of inception and until the debt is fully repaid. Unsubsidized student lending includes: Unsubsidized Stafford, Federal PLUS, Direct PLUS and Direct Unsubsidized.Students with subsidized college loans are exempt from paying interest while attending college and during deferment or grace periods. Subsidized tuition lending includes: Direct Subsidized, Federal Subsidized, and Stafford.Students with SallieMae loans are required to pay interest while enrolled in college. Upon graduation, students must abide by the terms of their selected payment plan. Graduates with Direct Loan payments must adhere to federal guidelines and designated grace periods.One trusted source for obtaining consolidation information and resources is http://LoanConsolidation.ed.gov. Operated by Federal Direct Consolidation Loans, this website provides student loan calculators to help students determine monthly payment amounts, along with lending application instructions, and a comprehensive list of frequently asked questions.It is important to realize that college loans cannot be discharged through personal bankruptcy. The only exception to this rule is if students can provide evidence to the judge that they are experiencing extreme financial hardship. In rare instances, bankruptcy judges will allow post graduates to restructure education debt through a Chapter 13 payment plan. Filing bankruptcy to restructure college education debt should only be used as a last resort.Defaulting on student education loans will adversely affect FICO scores and remain on credit reports for seven years or until the statute of limitation expires. Students must make every effort to make payments on time and in full until the debt is fully repaid.Multiple options exist for college loan consolidation. Post graduates should consult with a tax advisor or financial planner to determine if consolidating education debt is in their best interest.

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