How do you know if federal student loan consolidation is going to be the best way to handle your college debt? Before you can plan to consolidate, it is important to establish the details of all your college loans. Begin by taking inventory of what your owe. Know who you owe Categorize your debt into who the lenders are. There are many graduates who have used multiple cash sources and it is imperative that they understand who they owe money to so no party will get neglected. There are federal student loans, state and private lenders, family debt and credit card debt accumulated over the college years. Calculate the total debt Figure out how much you owe. When you have a clear picture of the totals, you will have a better understanding of what needs to happen to your debt. Debt with a grace period will provide six months of relief, but if they are unsubsidized, you will have interest accumulating during the grace period. Calculate this interest into what you owe as it will only be added to your primary balance if you don't make payments. Once you know who you owe and now how much, it is important to look at the interest rate. The ones with the higher interest should have priority over the rest. If you owe money to family, be clear about your payment intentions. Understand loan terms There are different terms and repayment options for federal and private loans. It is important that you keep the loans separate. Federal loans will have their own student loan consolidation plans so don't mix the two into one. Private loans are not part of federal programs, but a private lender will consolidate federal loans. Keep the categories separate in order to find the most student debt relief. You can look at your credit report to find out the loan terms of private loans. You can work through the Department of Education to understand federal loans. Get in contact with a federal student loan relief service to not only find out what the terms are, but also set a plan to get relief. Most of these companies will have a free consultation to help you understand your federal loans better. Apply for relief Don't lose yourself in a pile of debt. Once you have clear knowledge of what you owe, who you owe it to, and what is expected of you then it is time to plan an attack of making these payments affordable. If you avoid dealing with it you are taking a big risk. If you need more time than the grace period to figure it out, apply for deferment or forbearance so your credit is not subjected to negative reports. You may be new to the personal financial world, but it is very important that you handle finances effectively. Your college degree was earned to boost your future, it would be sad to see your credit fail right out of the gate just because you did not apply for the necessary relief. Take a good look at each of your loans. Once you understand the debt in front of you, you will have clearer picture as to how to handle your student loan deb. Apply for other relief programs before you consolidate your student loans. National Student Loan Relief helps individuals gain financial relief from their Federal Student Loans. Student loan debt consolidation can lower your payment and get reduced interest rates.
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