In the last year I have begun working with recent college grads who are struggling under the burden of their monthly federal student loans. Consolidating the loans in many instances can lower monthly payments by 2/3 in my experience. There a few things to consider when consolidating.
1. You can only consolidate federal student loans.
2. There are 7 different repayment options and you may not be eligible for all of them, but you should be eligible for 3-4.
3. With consolidation your interest rates on existing loans will be averaged, so some of your interest rates will be reduced, while others will increase.
4. While your monthly payments will be reduced with consolidation, you may owe more overall.
5. You can only consolidate federal student loans once.
6. You can pay off you federal consolidated loan early without penalty, which woul reduce the overall loan debt.
Choose your consolidation option wisely for the greatest benefit. If you need student loan debt counseling, contact me at firstname.lastname@example.org.
The Huffington Post reported today on the wealth gap created by student loan debt. There are some frightening insights based on the Pew Research Center report titled “Young Adults, Student Debt and Economic Well-Being”. A record 37% of households head by an adult under 40 has student loan debt.
Another piece of staggering data is that college graduates without college debt in the same age group have a typical net worth 7 times higher than those with student loans to pay back.
I can attest to the increase burden student loans are having on young adults. In the last year, I have counseled more young adults weighed down by student loan payments. As a result of this debt my young adults clients are choosing to live at home with parents or find multiple roommates to make ends meet, delay purchasing a home, buying used cars or relying on public transportation.
Read the full article here:
Looking for additional funds for college, but have reached your student loan limit or want to minimize your loan debt? Consider applying for private scholarships. Here are some tips:
1. Check with your school’s Alumni Office to see what scholarships are available.
2. Be aware that private scholarships and grants are not just for freshman. In fact most are offered to any full time college student, including graduate students.
3. Make a list of the hobbies, talents, jobs, clubs & organizations you participated in and use these are search topics.
4. Search for scholarships based on your ethnicity, religion, and physical /personal characteristic you have (Tall, left-handed,adopted, etc).
Senator Elizabeth Warren has co-sponsored a bill which would allow borrowers to refinance their federal student loans and take advantage of the lower interest rates that are currently available. She discussed the bill in a CBS News interview yesterday. Watch the interview here.
Head For College is the website for McLaughlin Education Consulting, a college planning service, offering college admissions, financial aid/scholarship and student loan/consolidation counseling for those interested in an undergraduate or graduate degree.
Here is an overview of counseling services offered:
McLaughlin Education Consulting
* College Selection
* Application & Essay Review/Editing
* Interest Inventory & Career Exploration
* Interview Coaching
Financial Aid & Scholarship Services:
* FAFSA & CSS a Profile advising
* Estimate eligibility for financial aid
* Scholarship Search for Undergraduate Students
* Review/evaluate Financial Aid Offers
* Assist with Appeals & Negotiations for additional financial aid
Graduate Student Services:
* Program selection
* Application & Essay Review/Editing
* Scholarship & Fellowship Search
Student Loan Debt Management Counseling:
* Review current loan debt and advise on Consolidation options
* Loan Repayment/Forgiveness Searches