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Debt consolidation may provide relief as some find it difficult to pay down student loans
By Angela Hawke on Feb 28th, 2010
A recent report from the Wall Street Journal notes that some people may be having difficulty when it comes to paying down their student loans.
According to the newspaper, of the $730 billion in student debt that is out there, 40 percent of it is actively being repaid. The remainder is accounted for by students who are still in school or those who are just not able to pay off the debt, electing to try and defer it. Or worse, they end up defaulting on their loans.
The Journal noted that student loans are more difficult to get out of than things like mortgages or credit card debt. In the case of a mortgage, a bank can always repossess the property, while credit cards can be erased through bankruptcy.
"But ditching a student loan is virtually impossible, especially once a collection agency gets involved," the Journal said.
There may be options for people who are saddled with student debt. Debt consolidation may make them easier to pay by collecting them into one bill. However, people should keep in mind that federally and privately originated student loans have to be consolidated separately.
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