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Tuesday, March 23, 2010

The Easiest Way to Reduce the Burden of Student Loan Debt

Graduating from college opens a whole new world of possibilities. After the years of sheer hard work, sacrifices, with a good dose of pain, laughter and tears, graduation becomes a moment of celebration and joy. Indeed it concludes the end of a long season that marks the beginning of an exiting new journey in a person's life.

After the initial euphoria has dissipated, the hard, cold reality finally sets in. This isn't a time for you to spend restless days under a shady tree chatting on your favorite topic and sharing a few giggles with your good friends. You are all on your own now, at last. You are free to do whatever you want and more importantly, you are now financially responsible for everything that goes on in your life and that includes paying your student loan.

"Ah! Darn those loans!" But like it or not, those monthly payments have to be made if you do not want creditors to come haunting you every step of the way or knocking at your doorstep at times when you least want them to.

To make matters worse, those loans come at different interest rates and you may be getting a little overwhelmed trying to maintain everything in perspective, not to mention the confusion of getting into a new phase of life that will certainly bring its own confusion and some initial disorientation.

Is there a way to reduce the burden of student loan debt?

Student Loan Consolidation

Sadly, there isn't a magic wand that you can wave and make all those debt disappear into thin air but there is a systematic and intelligent way to manage your multiple loans with varying rates. You can achieve this by consolidation them into one single loan. If you are wondering how this will help you on the long run, here are just some of the benefits of student loan consolidation.

Lower Monthly Payments

Student Loan Consolidation allows you to extend the term of the payment beyond the normal ten year period. Depending on the loan amount, you can choose to extend it for up to twenty years, making the monthly installments very affordable especially when you are just starting out on the workforce.

Ease of Payment

It is a lot easier to pay just one creditor instead of paying multiple lenders at one time. No longer do you have to make separate payments in different values at the end of the month.

Easy Management

By consolidating all your smaller loans into one bigger loan, you can benefit from one interest rate instead of having to juggle with different rates from different lenders. This will make it easier for you to find the best rate that can suit your purpose.

Starting your new life after graduation doesn't mean you should burden yourself with the task of paying the dreaded student loans while sacrificing the wonderful period of life steeping into the workforce and earning your own income. With proper management and the right knowledge, you can make the right steps to manage your resources better without sacrificing the quality of life you deserve.

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