Stay on top of your education loans
Consolidate Defaulted Student Loans
The U.S. Department of Education  surveys undergraduate students and their families to determine how they pay for college. The results of these surveys on student loan debt provide the following statistics:
67% of students graduating from four-year colleges and universities had student loan debt. That represents 1.4 million students graduating with debt, up 27%:
62% • of graduates from public universities had student loans.
72% • of graduates from private nonprofit universities had student loans.
96% • of graduates from private for-profit universities had student loans (a major increase from 2004, when 85% of these graduates had student loans).
The last survey was completed in 2008, as these are done every four years and these results for average debt levels were found: Average debt levels for graduating seniors with student loans rose to $23,200 in 2008 - a 24% increase from $18,650 in 2004.
If these trends were to continue, that would mean that the average debt level for graduating seniors having this debt over their shoulders would be $28,768 in 2010 and will only continue to rise, if we used the 24% average increase. These debts rise even higher for private for-profit universities.
Further results show that for families that earn an average of $50,000 or less, pell grants are particularly popular and students of these grants typically borrow larger amounts of money and borrow more often.
It's no surprise that many graduating seniors that head out into the workforce find themselves having to start paying these student loans back, usually within 6-9 months of graduating and realize the difficulty in maintaining payments on these debts within a timely fashion. Many of these get deferred beginning repayment payments until 6-9 months after beginning the workforce in the graduating field of study.
Search online for a student loan consolidation calculator that assists you in determining your payment amount based on your interest rate and total loan amount.
If you need a great read about how to combat student debt, you'll get loads of tips for yourself and will probably want to share with your friends and family that are taking on big debt too.
Why Maintain Current Loan Payment Status?
The benefits to keeping loan payments current are:
Maintain the highest possible credit score and credit rating
Secure automobile loans
Secure further continued education
Why Consolidate Defaulted Student Loans?
Obtain a fixed lower interest rate
Obtain one lower payment instead of several payments
Maintain your credit rating without further detriment due to default
Avoid bankruptcy and associated credit problems that ensue
Repayment options are flexible
Free up your income to enable other purchases
Where to Consolidate?
The U.S. Department of Education offers a Federal Direct Consolidation Loan that enables students all the benefits described earlier. Contact them to find out if you could benefit from this loan.
Steps to Take?
Notify your lender immediately when you realize that you will be late on a payment. They may be able and willing to assist you in offering some suggestions.
Make at least 4-6 monthly payments on time so that you can receive help to consolidate it in the future.
Contact a local banker or credit union after you have attempted assistance from The U.S. Department of Education. These financial institutions that you have a relationship with or are local to your area are more willing to assist you in consolidating several payments into one to prevent further credit problems for you in the future.
Gather your paperwork including all loans, interest rates, current payment amounts due, current financial status, employment information and all income amounts as well as knowing your credit score and rating.
Be aware that your employer may be ordered by a court to garnish your wages and your income tax return can also be garnished if you are unable to create your own plan of repayment. They take it very seriously and so should you. Any one of us that has been a college student (well, most of us anyway) have been through the difficulty of accumulating large debt due to higher education so you're not alone. It doesn't have to cause you unwanted stress if you deal with it as soon as possible.
Read Debt Payment Tips: http://www.infobarrel.com/Debt_Payment_Tips
Is Bankruptcy an Option?
The requirements to file bankruptcy in order to eliminate paying back student loans are increasingly difficult. Most people will not qualify due to the strict requirements.
The best that most could hope for would be a partial discharge of the loan. You must repay everything you've borrowed even if you quit school or changed schools.
Do whatever you can to make arrangements soon to maintain your credit rating and keep your payments current.
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Manage your budget and pay back your school debts
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