Phoenix, AZ -- (SBWire) -- 01/22/2014 --After leaving college with a degree, it’s sometimes tough to find employment. This can make it hard to begin repaying one’s student loans. The first option to check out is student loan debt consolidation, but there are other choices to look into. Credit-yogi.com suggests some of these alternatives, including:

- Loan Deferment
- Avoiding Default
- Understanding What a Loan Servicer Does
- Going Over the Choices

http://www.forbes.com/2009/04/15/student-loans-moneybuilder-personal-finance-consolidate.htm

Defining College Loan Payment Deferment

Loan deferment is an alternative to a student debt consolidation loan that makes it possible to postpone or temporarily reduce the amount of one’s payment. During a period of deferment, the federal government may pay the interest on the loan. Loans with payments that can be deferred include the Federal Perkins, the Direct subsidized, and the subsidized Stafford. These loan payments can be deferred for up to 36 months if one cannot find employment or becomes unemployed and cannot afford his payment(s).

Do Not Default

Credit-yogi.com cannot stress this enough: DO NOT DEFAULT on college loan payments!! Defaulting is defined as not making payments on one’s loans, and it’s a very poor financial move. When a student takes out a loan, he signs a promissory note, which is his promise to make his payments on time and in full. Because there are ways to avoid defaulting, doing so will make it difficult to obtain a student loan debt consolidation later. Contact one’s loan servicer for to find out how to avoid defaulting.

Loans Servicers and What They Do

One’s loan servicer is the company that handles any issues pertaining to one’s federal loans. Loan servicers are appointed by the U.S. Department of Education once a loan is disbursed (paid out). The loan servicer works with a person to go over his options for repaying his debt. To find out which loan servicer one has, contact one’s former university’s Financial Aid office. Loan servicers can help with a student debt consolidation loan, as well as with working out a payment plan. Get in touch with the loan servicer at the first sign of trouble.

Understanding the Options

One must understand what a student loan debt consolidation is before he makes any decisions about how to best repay his higher education loans. When loans are consolidated, they are combined into a single loan with one payment each month. This saves an individual money by providing a lower interest rate and a reduced payment, which makes it easier to handle. If this does not appeal to someone, there are many payment plans he can access through his college’s Financial Aid office, as well as by going online to StudentLoans.gov.

About Credit-yogi.com:
Credit-yogi.com came into being eight years ago with one goal: To give consumers from all walks of life simple, straight answers to their fiscal questions. Thousands of people have accessed the site since its inception, and they are highly satisfied with its service. For a free initial consultation, dial 866-964-9644, any time.