Monday, September 21, 2009

Consolidation of Student Loans

By: Pauline Davies

Description : There are several methods for students to find relief from debt - for instance by the consolidation of student loans. If you are sinking in student loans, you must be advised that there are a few options for the consolidation of student loans.

However, to get started, you must determine the size of your loan and the types of loans you owe. Next, you should get in touch with the lenders or college financial agents and request a loan drop. If you are in debt over your head, then this is a better solution to your problems than the consolidation of your student loans.

But, if that doesn't work and you fail to seek the consolidation of your student loans, then you are at risk of lawsuits, the loss of tax refunds or credits and the possibly of wage garnishes. Again, whether or not you can ask for a cancellation of the student loans will be depend on the type of student loans you took out, when and for how much they were issued.

While it is not likely, some schools have issued student loans fraudulently. If this is true in your case, then you may request a cancellation of the loan. Furthermore, if you have suffered from an accident or became ill and the injuries or sickness have disabled you for life, then you can also ask for a cancellation on the loan.

Military personnel and members of some particular organizations qualify for a cancellation of student loans too. If you are able to get the loan dropped, imagine the money you will have to repair your credit and cancel some of your other debts too.

Finally, if you have paid your monthly installments with good faith until times got hard, you may qualify for a postponement of payments. This is called a deferment request.

The student loan lenders may present you with the "forbearance" option if you request a deferment. The "forbearance" means that the lenders will reduce your student loan repayments temporarily until you are back on top of your debt problem.

As a student, you have numerous ways to manage your debts if you are currently in over your head. Do not assume that there is no solution; instead, spend your time researching the consolidation of student loans options instead of worrying.

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