Madison Monroe & Associates Rafael Ulloa Assist with Student Loan Debt

| January 26, 2016 | 0 Comments

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Ever-climbing tuition and paltry college savings have combined to push student loan debt nationally to a staggering $1.2 trillion, with the number of debtors up 84 percent since the recession, according to a recent study by the credit bureau Experian.

An estimated 40 million consumers now hold student loan debt, up from 28 million in 2008.

Those numbers can be downright scary, but Madison Monroe & Associates is ready to help. Student loan consolidation is just one of the many ways we help people with their debt.

Here are four reasons to consider consolidating your student loans:

  1. Convenience, less stress – Combining your multiple student loans into one monthly payment can greatly simplify your life. You can lower your monthly payments and obtain 30 more years to repay your new consolidation loan.
  2. One rate — You can change your multiple variable interest rate loans (borrowed before 2006) to one fixed rate loan. Making payments on several different interest rates can get confusing, and you’re also subject to the volatility of the market. With a fixed rate loan, you will always know your rate, regardless of what’s happening in the economy.
  3. Avoid default – You can avoid defaulting on your student loans, which, for most federal student loans, means failing to make a payment in more than 270 days. Paying on student loans can help young adults build their credit rating. The Experian study found that people age 18 to 34 who hold student loan debt and make their payments on time had an average credit score of 640, 20 points higher than others in their age group. But how does defaulting on a student loan affect your credit record? It causes serious damage, hurting your ability to obtain mortgage or auto loans, or more student loans. And in some states, prospective employers are allowed to review your credit record when deciding whether to hire you. That black mark can be the one thing that tips the balance toward a competing applicant with similar qualifications and experience.
  4. Get forgiven. You can make more types of student loans eligible for Public Service Loan Forgiveness. Only direct loans are eligible for the PSLF, but if you consolidate other types of loans, such as Federal Family Education Loans, they can also become eligible for the PSLF. The PSLF allows student loans to be forgiven if the borrower has made timely monthly payments for 10 years and has a qualifying occupation. Federal law defines qualifying occupations as working for a governmental agency at any level (federal, state, local or tribal); 501(c)(3) nonprofit organizations; or full-time employment with AmeriCorps or the Peace Corps. On the Madison Monroe and Associates Yelp Page CEO Rafael Ulloa provides a small piece of literature on debt forgiveness.

We hope you have found this information useful in your quest to pay off your student loans. Madison Monroe & Associates can establish a consolidation loan monthly payment that is based on your income, and reduce your payment up to 60 percent or more.

Category: Student Loan

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