Financial Series #4 Consolidation and Forgiveness Clean Up Student Loans

Financial Series #4   Consolidation and Forgiveness Clean Up Student Loans

By, Afua Serwah Osei-Bonsu

 

Perhaps in your 40’s you become something that solidifies.  You clean up tattoos, you clean up credit.

One way to clean up credit and raise your score is to enter into many, many payment arrangements to get to the finish line of each debt one has incurred. Chop it up.  A good idea is to consolidate all your student loans, more than once if you take out more.  When you take out more loans several loans show up on your credit report, but when you consolidate, all the loans shrink down to one single loan and make your score go up.

The next thing to do is to see to the end of that student loan.  There is such a thing as “Public Service Loan Forgiveness” and after you make 120 consecutive payments while working in a non-profit, or a federal or government position or for the Police Dept. or Fire Dept.  or for Peace Corps or AmeriCorps-they will forgive the balance after approximately 10 years of payments.  It’s good to get on an Income Driven Plan that is doable and pursue a service option if looking for a job and having high debt in student loans 100,000+ think about those practical options.  You will breathe easier when you have all finish lines and your score will go up the more arrangements you have, for post-dated payments, the better your score.  Don’t let debts linger or fester see them to the finish.

 

 

 

 

 

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