Recently a friend graduated from law school after 4 years of hard work. It did not take him long to find employment with the local States Attorneys Office. It is a good entry level job and he was thrilled to get it. After about 3 weeks on the job he started getting letters from the various banks that were holding his student loans informing him it was time to start making payments.
The four loan packages he had used to get his law doctorate amounted to a little more than $130,000.00. Each loan package had a different payment date and each had a different interest rate. Two were 15 year loans and two were 10 years. It was not long before the enormity of his student loan debt hit home. He was worried that he might miss a payment and truly wished the payment date was the same for each loan.
When he went to the local car dealership to purchase a good used car he was surprised to find that his credit score was too low to normal interest car loan. The four student loans combined to lower his credit score to 610. He would only qualify for the high interest High risk loan. He also had no choice but to pass on his vehicle purchase. He like many college students do not realize the impact of several loans and a limited employment record could have on a credit score.
When payday came he also found that the monthly loan payments equaled approximately one half of his monthly income. He immediately began searching for the best student loan consolidation advice available. There are many student loan packages that will allow graduate, medical and law students that would allow him to combine his loans Many financil insttitutions have government stundent loans consolidation packages avaiable. He quickly found that by doing a student loan consolidation he could reduce his total monthly payments by 1/3 and was even able to lower his interest rate. He used a Great lakes student loan package to completed his loan consolidation. The application process was relatively trouble free and it was approved in less than a week.
In consolidating his student loans his credit score slowly started to rise and after one year he was able to qualify for most consumer loans. He also was able to apply for and receive an automobile loan at a competitive rate.
Every student should give priority to consolidating their student loans. It is the best way to save a significant amount of money. It is also one of the best ways to improve your credit score.