Americans are more burdened by student loan debt than ever. The fact remains that the nation’s student debt at a record high of $1.3 trillion, spread out among about 44 million borrowers. In fact, the average Class of 2016 graduate has $37,172 in student loan debt, up 6% from last year.
It also still holds true that a college degree the best path to a job and decent pay. Young adults with a college degree are much more likely to be employed than those without one. However, today’s young adults are not as financially stable as their parents were, and they are more likely to be underemployed.
Easing the Burden of Student Loan Debt
Many college grads don’t make enough money to pay off their loans within a few years of graduation. So, they are stuck paying them off for longer periods of time than previous generations. Thus, they have turned to refinancing or the consolidation of their student loan debt. Consolidating or refinancing makes sense since reduces interest rates, eases their monthly financial burden, and leave graduates with some cash flow at the end of the month.
There are over 70 repayment options for student loans, but they’re complicated for borrowers to figure out. Andrew Josuweit, the founder of Student Loan Hero, told BlackEnterprise.com that when it comes to private loans, borrowers should explore refinancing and make sure that they are getting the lowest possible rate.
“Lending institutions will also allow students to defer payments, if they are in trouble. Federal loans can get deferred for three years, and private loans can generally get deferred for six to 12 months. You have to sit down and figure out your options. There is no reason for the high level of default on student loan debt,” he explains.
Finding the Right Debt Consolidation Company
A number of students aren’t fond of working with a big bank or have reported trouble with finding the right student loan companies. To that end, Allstate Debt Consolidation has created a new guide to student loan consolidation, which helps graduates learn how to refinance student loans and explains how consolidation works. The top three firms listed in the guide are LendKey, CommonBond, and College Ave. Each one has their own pros and cons, which are explained on the site.
“Instead of getting a loan from a big bank, graduates can apply for student loan consolidation with these companies,” notes Allstate Debt Consolidation (ADC). They can also opt to apply with institutions, like local community banks and credit unions.
ADC’s handy guide tells graduates exactly where to go for refinancing this type of loan. The site also offers resources to help individuals with personal debt.
Photo by Photography Jones