Consolidating Student Loan Debt: A Constructive Solution to Debt Problems

For millions of students, graduation marks the moment when college debts must begin to be repaid, not just the end of their college careers. Unfortunately, it is a time when the majority of students know they face real financial pressure, with the average student leaving college with debts of at least $30,000. But there are solutions, and the best is consolidating student loan debt to make the debt more manageable.The task of taking on this sizable debt independently can cause real financial difficulties, with many graduates eventually declaring bankruptcy. Managing college debt through a consolidation program, the difficulty is eased and the debt is more effectively repaid.Still, there are both advantages and disadvantages to opting for consolidation in order to clear  student loans, and these should be carefully considered before any decision on a program is taken.The Mechanics of ConsolidationConsolidation is based on taking all of the existing debt as one debt, clearing it and then repaying the loan used to do so over a longer term.  Consolidating student loan debt means the debt is cleared in the most uncomplicated manner, with a single loan that is easily affordable.The benefits are pretty clear. The most obvious being that repayment is greatly simplified, so that managing college debt is more easily done. The complication with having three or more loans is that there are several repayment dates, different interest rates and varying loan balances to worry about. But the consolidation loan is a single, less costly debt.What is more, each individual student loan is cleared, which means that the credit score of the borrower is improved too. This makes for better deals in the future loans, especially if the consolidation loan repayments are made without a hitch.Program Options To ConsiderBetween college fees and living expenses, the costs of attending college can quickly and dramatically grow. It is common for a typical student to seek several loans each year simply to get through the college year. This is why consolidating student loan debt is a necessary debt solution.However, the consolidation program chosen depends on the type of loans the student took out. There are private and federal loans available, and each have their own programs structured to benefit them. Managing college debt effectively means identifying which loans the student has and which consolidation program brings the most benefit.These programs differ in a number of ways. Federal programs are provided at low fixed-rate interest rates and extended repayment breaks. But private programs, which are available from private lenders, tend to be more expensive. However, in both cases, the student loans are cleared more affordably.Factors to Look Out ForDespite the clear advantages, there are some negative aspects to consolidating student loan debt that should be taken into account. For example, the time period required to clear the loan can be very long, perhaps as long as 25 years. The amount of debt involved dictates this matter, with affordability achieved by increasing the number of monthly repayment sums.Of course, this also means that a large amount of interest is paid over the term of the consolidation loan. So, while the loan is made more affordable, managing college debt in this way is actually more costly.However, there is no denying the advantages of clearing student loans through consolidation, a method that eases financial pressure and makes repayments more affordable. And in the end, the debt is removed.