What to do with all that student loan debt?
Financial problems begin early in the life of a young adult especially one that has graduated from college. Entering the work force with a pile of loans on their back is a heavy burden which will impact major decisions in a young adult’s life. Whether the loans are federal or private, money will be due in approximately six months from graduation date. For those who don’t graduate, the last date of in-school status will begin the count down.
What problems are young adults facing?
Where to live? Many graduates are heading back to their parent’s homes while they work to get on their feet.
What job to take? Not everybody will have a high paying job waiting for them upon graduation. If the new job has potential but the start-up salary is lower than expected, how does one cover the cost of moving plus regular living costs? It would be great to think that all companies would want you bad enough to cover moving costs, but not all do.
How to handle student loan payments? When you were attending school, did you take note as to how much you borrowed throughout each year? Did you use every federal loan possible before you went to a private lender? Loans from the Department of Education offer more student loan relief options than banks or private lenders. It’s important to know what is offered for each type of loan you have before you make any decision.
There are many reports about student loan relief programs offering help in order to take advantage of young graduates deep in debt. In theory, this service is a paid for service similar to tax preparers. Not everyone has the time or mindset to work through all that is involved in processing their taxes efficiently. Taxpayers pay a service or a Certified Public Accountant to process their tax returns for payment. Student loan debt is another problem in which people are eager to pay a service to handle the paperwork and complexities of deciphering through each type of loan. Federal and private student loans are processed separately. Because federal programs will offer more help, it is not in a person’s best interest to pool all the money together into one private consolidation loan. Shop around for a low cost service with experience (just like you would with your tax returns) and ask all the free questions you can. Any good service will offer a free consultation for you to better understand what type of student loan savings you are looking at.
Before you decide to handle things on your own, consider all options available to you and decide accordingly. Your student loan debt will hover over your budget for many years to come, so make informative decisions based on the types of student loans in your portfolio.