If you have student loans from college, then you already know how much of an effect they can have on your life. In the most extreme cases, these loans can make it impossible to save enough money to get started in a career, buy a house, or start a family.
The problem with student loan debt is two-fold. The interest rates charged by private student loan lenders and even some federal loans is 8% or higher. That’s several points higher than what most people pay for a mortgage or car loan. The other problem is the high amount of debt that some students have. Today, it’s not uncommon for a former student to have over $25,000 in student loans.
A high interest rate combined with a high amount of debt is a recipe for disaster for any person who isn’t established in a well-paying career. The high monthly payments can make it impossible to save any money, and in many cases it’s impossible to even make the monthly payments.
Fortunately, there is a way to make your student loans affordable. Lowering the interest rate is
possible with a debt consolidation loan. These loans pay off all of your existing debt, and replace your old loans with a single student loan. This loan can have an interest rate that is less than half of what you’re currently paying.
When you pay less on interest, your monthly payment will go down. That frees up enough cash to get your loans paid off earlier, build up savings, or just get to the point where you can afford your bills every month without taking out additional loans or putting things on credit.
For many people, lowering the interest rate on their student loan debt gives them the ability to actually start living their life. Halving your interest rate through a debt consolidation loan can allow you to cut hundreds of dollars from your monthly payment. If you want, you can even talk to your debt counselor about extending your payment term so that your payments go down even more.
<p data-sp-element=”content”>Paying less on your student loans by lowering your interest rate is a good way to finally get in control of your finances.