There is a lot of buzz in the media recently about consolidating student loans. For some consumers making payments is not an issue. The issue lies in knowing who to pay as the servicer on the loan changes and knowing when a loan comes out of deferment to start paying.
As always, we advocate paying your bills on time and in full. In doing so you are building a positive payment history and building your credit. At times this can be difficult due to finances and misinformation. One of the first things to remember is to always check your mail, do a change of address with USPS if you move, and of course pay on time. By taking all of those steps you should get all of the mail necessary to stay current on your student loans.
Let’s say for example you have done all of that and stayed current but no you are having a hard time repaying your loans. There are some consolidation options available through the US Department of Education. Depending on your income, profession, and other factors you may even qualify for an income based repayment plan with little or now payment. The loan may also be forgiven after 120 consecutive on time and in full payments. To determine what may be best for you visit the US Department of Education Student Aid website. This is unbiased information from the USDOE and not a company trying to sell you services. There are plenty of professionals that handle student loan consolidation through government programs for a fee of course. If you are unsure what to do, and confused a professionals advice could be helpful.