The average American student has tens of thousands of dollars in debt before they even graduate. Once they hit the job market, they find an economy that does not have high-paying jobs ready and waiting like they were told when they started school. But without an education, they would be making even less so it is either work at a fast food restaurant your entire life or go into debt for a slightly higher paying job. On a national level, student loan debt out numbers credit card debt by literally billions of dollars. How is it that doing the right thing, doing what you have always been told will get you ahead in life, going to college, costs more than the kind of thing that is so looked down upon? That is why the United States government has come up with a plan to consolidate student loans, decrease monthly payments, and make federal student loan interest rates lower for everyone.
Interest Rate Decreases
The average student loan interest rates are closer to 10 percent than five percent. This is especially hard on students who have more unsubsidized than subsidized loans. An unsubsidized loan means that though you do not have to pay back the loan while you are in school, the amount you must pay back continues to collect interest. The great thing about consolidating your loans through the government is your federal student loan interest rates can drop as low as one percent. The average is somewhere between one percent and six percent, still much lower than most current loans.
Payment Amount Decreases
When you consolidate your loans through the federal student loan consolidation program, not only do your student loan interest rates decrease, your monthly payments will decrease too. In fact, under the federal student loan consolidation program, there is no such thing as minimum or maximum payments.
Only One Lender
When the federal student loan application process provides a student with their loan options, you have many choices from different banks. When you consolidate your loans, you are no longer going to receive multiple bills from multiple lenders. You will only have one lender, one bill, and one place to call when you need to handle your loan information and nothing more.
Flexible Payment Options
When you consolidate, you choose your payment options at the same time. You will be getting exactly what you want, exactly how you want it.
