Paying Back Your Student Loans May Be Overwhelming: There Are Some Options

Obviously, there are some who are unable to meet multiple student loan debt repayment obligations on various loans due to economic and employment difficulties which have been present for many graduates, so consolidation is the only way that they can affordably combat their debt at the present time. There have also been some students who have consolidated debt and simply began paying more than their minimum monthly requirement in the hopes of erasing their debt in a timely manner, but again this is not always an affordable options for graduates.

Student Loan Consolidation

Student loan consolidation is a way for borrowers to manage multiple loans with varying interest rates by combining them all into one lump sum with one rate. Borrowers usually decide to consolidate when doing so will result in paying a lower interest rate. However, consolidation does not equal a lower rate; it's possible to consolidate multiple loans into one but end up with a higher rate of interest on the new principal amount.

Loans Will Be Paid Back

Whether it's an 85% recovery rate or north of 100%, the fundamental issues are basically the same. Student lending has developed into a system where no one other than the borrower really loses when people are saddled with excessive debt. Colleges don't care because easily available borrowing smashes the natural ceiling on college affordability — and allows colleges to continue raising prices at breakneck speed.