It is most definitely not a great time to be graduating from college with the unemployment rate high, the low starting salary, and student loans averaging around $22,000. How are all of these unemployed, underpaid, college graduates supposed to be able to afford the college loans they are stuck with after graduation.

 

Many college graduates are now wondering about consolidation.  Paying several different companies at different times throughout the month can make consolidation an appealing option. However, we do suggest you look into consolidation and understand the current options before you jump head first into consolidation.  Sometimes, consolidation isn’t the best option, even though it may be the easiest.  

 

Here is a bit about what is currently happening in the world of consolidation:

• Starting July 1, 2009 graduates that have federal college loans can possibly qualify for a new government program which can reduce monthly payments by basing it on income
• If you have a variable-rate stafford or Plus loan, don’t consolidate until after July 1 when the T-bill investment rate is finalized
• Don’t consolidate fixed-rate loans for a variable rate loan
• If you are struggling to make payments, look into Graduated Repayment and Income-Sensitive Repayment plans which begin low and grow as your career grows

 

So if your question is should you or should you not consolidate, it is not a simple yes or no answer.  Analyze your loans, sit them out in front of you, and calculate your rates compared to a consolidated loan rate. If this sound too complicated for you, contact Creative Financial Group.  We can help you find the best possible option for you.