Undoubtedly, student loans have helped many Americans through college. This loan made it possible for some who may not otherwise afford college education get a degree. But in 2017, there are still 44 million Americans buried under student debts. Among them, 11.2 percent are delinquent of their loan.
To give you a picture of how huge the total student debt is in the US, it is safe to say that there is more student debt than the combined total of all credit card debts in the country. The total student debt is now $1.4 trillion.
Combining Fed-Student Loans Into a Single Loan
For borrowers who took multiple federal student loans, one way to address student debts is to combine them. Instead of making multiple payments on different loans with varying interests, there can be one single monthly payment.
The Direct Consolidation Loan enables borrowers to consolidate these loans into one loan, making it easier to make monthly payments. This also allows them to access other repayment plans and forgiveness programs.
What are the Benefits:
It comes with no application fee. There is no need for you to seek help from a private company for assistance and pay a fee.the Direct Consolidation Loan application comes free of charge and is easy.
The ease of paying just one loan will help you a lot. Instead of worrying about missing one payment or figuring out which one to pay off first, consolidating your loans allows you to focus on just one loan. One single loan equals one monthly bill to take care off.
This can lower your monthly payments. How? By having a longer term on this loan, the balance and interest can be spaced out which brings the monthly payable down. Also, you can change any adjustable-rate loans into one fixed-rate loan. This way you know that you will be expecting the same monthly bill each month.
Debts consolidation can assist you in managing your debts, student debts or otherwise. However, debts consolidation is not the sole answer to this problem. In the end, it is your conviction to pay off your debts and your consistency in making payments that will help you get rid of student debts.