Executive Summary By Ernesto Maitim and W. Darren
School Loans Consolidation - Pays Off Your Previous Loans
If you obtain student loans that you used to pay for your education, certainly you need to repay them at a designated time. Not only are you worried about how you will pay your student loans, but likewise other debts and financial responsibilities such as rent, car loans, and family or household needs and essentials. Luckily, there is a way by which one can provide solution to such loans, and this is via school loans consolidation. With such financial loan repayment program, you are able to make payments every month to a single lending company.
Now you are more in control of your school financial responsibilities because you not only have a new single loan. Likewise, the rate of interest of the school loans consolidation is more or less the average of the previous school loans, which basically makes the rate low overall.
Taming Debts With School Loan Consolidation
Before inflation wreaked havoc in national economies, going to school was the hard part. Now graduating had become the easy part, while paying off the loans have become the most difficult part of life. School loan consolidation and "OPM" options (other people's money) have become popular means to pay off debt.
Take the case of Virgil Hilliard, a graduate of University of Southern California. Medical school was no walk in the park- and the loans he owed were no laughing matter either. Hilliard shares:
Diplomas and Debts
According to the Education Resources Institute (Boston) and the Institute for Higher Education (Washington):
"Undergraduates today leave campus with an average $7,594 debt from public four-year campuses, $10,000 if they opt for private schools. That figure is increasing rapidly since tuition rises on average about 7% annually. Graduate students have it worse, particularly those who enrolled in professional programs."
"On average, law students graduate owing over $40,000--a monthly bill close to $500, assuming a 10-year payback period and an 8% interest rate. Doctors and dentists, meanwhile, finish school owing an average $64,100 and $67,800, respectively, in debt.
Solution: School Loan Consolidation
The struggle can be tiresome, but repaying all those debts is never impossible.
Computing for Comfortable Repayment
Take what the USA Group, a loan consolidating company from Indianapolis, has to say about school loan consolidation and repayment:
"Most people can foot 8% of their annual salary in student loan payments comfortably. Translated into raw numbers, if you make $24,000 a year, $1,920 annually or $160 a month should be affordable with a minimum of financial pain."
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