Student Loan Debt
Student Loan Debt
Statistics gathered by the Federal Government show that nearly two-thirds of the Class of 2006 are starting out their professional careers encumbered by student loan debt. In fact, student loan debt continues to rise each and every year. College costs have risen faster than inflation and recently, the National Center for Education Statistics conducted a study that showed that approximately 50% of recent college graduates have student loan debt in excess of $10,000.
Once a student graduates and has to start paying back their student loan debts, they begin to see that their first job out of college might not pay quite as well as they'd been led to believe. It is at this point that the student loan debtor begins to look for ways to reduce to their debt load, the most common among them being consolidation refinancing.
One benefit to consolidating your student loan is the reduction of interest rates, and thereby monthly payments and overall debt. Chances are good that you will get a better rate now than when you first got your loan.
The second advantage to consolidating your student loan is the reduction in your number of creditors.
A student loan, like any other debt, may influence your credit after graduation. If your student loan debt is greater than 8% of your income then the student loan debt may be viewed negatively by a creditor when considering you for a loan.
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