Is College Debt Consolidation for Me?

Many people find themselves swamped with college debt after graduation.  Imagine this, you spend years in school at the University of Massachusetts at Boston, learning your chosen profession and then when you get out and there are no jobs in your field.  You go to work flipping burgers and drowning in debt.  Well, maybe it's not that bad.  Job fields do fill up quickly, especially in areas that already have many practitioners.  Make sure you're choosing a job field that you want to work in, not being drawn in by promises of money; those don't usually pan out.  Another thing to keep you from drowning under that mound of debt is to consider college debt consolidation.

Don't run away, now.  Unlike other consolidation practices, college debt consolidation is a fairly straightforward business.  Also unlike other consolidation practices, companies offering college debt consolidation are forbidden from charging any fees on federal student loan consolidation.  Note that word 'federal'?  That's right, if you owe loans to private companies, you're out of luck on that score.  You can still consolidate your college debt, there's just no law keeping companies from charging you to do it.

If you have federal college loans that need to be consolidated, there are a couple of requirements you must meet to be eligible for the program.  First, you have to have over $10,000 worth of college debt to consolidate; that's probably not a problem.  Secondly, you cannot be in default.  If you've already defaulted on your loans, you're not eligible for this program and you'll have to use conventional consolidation methods.  Third, you have to be either out of school or going less than half time.  Lastly, your loans cannot have already been consolidated; that's right, it only works once.

If you have college debt to be consolidated, you'll need to apply for a Federal Consolidation Loan.  Many companies can do this for you, and they'll all do it for free, or at least they're supposed to.  There are fraudulent companies everywhere, eager to take advantage of unknowing young people frightened by their debt. Once you've applied for a Federal Consolidation Loan, you'll have to wait for your application to be accepted; once it is, you'll be sent all the pertinent information like the payment amounts and payment plan.

Dylan Johnson, from Boston, Massachusetts, found himself in just such a predicament.  He was able to apply for a Federal Consolidation Loan through a local lender and found himself very happy.  The service was better than he would have received from a large national lender and no one tried to take advantage of his inexperience.

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