There's no question that college is expensive! Millions of students fall into debt every year, some of which have a plan to pay off the expenses over time, while others get stuck in a spiral of increasing debt, having no idea where to turn. Right about now you might be looking for answers to student loan payments, perhaps even Stafford loan consolidation. Before considering what debt consolidation is and is not, first understand the obligation of a Stafford loan repayment.

When you sign a master promissory note you are agreeing to pay back the federal government's money, which was given on the agreement that the funds be used to profitably further your education. The loan amount is deferred with Stafford loans. That means that you don't have to start making payments until graduation. Unsubsidized loans accrue interest from the time of disbursement, while subsidized loans suspend the interest until graduation. What happens if you don't graduate, whether because of withdrawing from college or falling short of meeting half-time hours? That loan is still owed back to the government, with all interest.

Debt forgiveness requires that the debtor student perform volunteer work in exchange for stipends and college loan repayment. This is not the same thing as Stafford loan consolidation. Stafford loan consolidation helps students who are struggling financially to ease their repayment by stretching the term over time. For example, Stafford loan consolidation can stretch the repayment term from 10 years to 30 years. This not only frees the student from pressure, it also reduces the monthly payment, improving the student's cash flow.

Stafford loan consolidation is essentially a fixed-rate refinancing program that can combine all of your existing student loan debt into one convenient payment. Typical results show that as much as 53% of previous student debt can be reduced. This protects you against inflation costs and higher interest rates, while freeing up more cash. This is also the best way to go about fixing your credit rating. When you apply for a Stafford loan consolidation, credit is not the major issue so you will not be denied based on credit.

Stafford loan consolidation is an alternative to federal student loan forgiveness, which is not applicable to everyone's circumstances. Furthermore, not everyone can even qualify for volunteer work in special organizations like the Peace Corps or the U.S. Army. Stafford loan consolidation is not only the smart thing to do-it is the only ethical option.