Recent college graduates biggest hardship is likely to be the weight of student loan debt hanging over their heads. In 1993, less than fifty percent the college graduates had any student loan debt. For those who did, the average student loan debt was $9,250. This year two thirds of college students graduated with student loan debt and the average debt that we, Student Financial Advisors, is $40,000.

When students enrolled in college four years ago, most of them easily justified borrowing nearly $40,000 to pay for tuition and other school expenses. After all, student loans are the price most students pay for a college degree that opens the door to better paying jobs and career opportunities.

Now almost six months after graduation and their grace period almost up, students are finding themselves in a much different situation. With both federal student loans and private student loans having variable interest rates, many students are beginning to realize that they better do something quick. That something is to consolidate both their federal student loans and their private student loans.but not together. NEVER CONSOLIDATE FEDERAL STUDENT LOANS AND PRIVATE STUDENT LOANS TOGETHER!!

The current interest rate for Stafford student loans in repayment is 7.14 percent, PLUS loans are 7.94 percent, and private loans are usually worse. If you take the average student loan debt that Student Financial Advisors consolidates, which is $40,000 and figure out the monthly payments they come out to $467.32 a month. Now you add in rent, car payments, insurance, and other monthly bills and suddenly college graduates can't make ends meet.

Student loan interest rates have increased dramatically over the past four years, with congress imposing an arbitrary new rate of 7.14% which was imposed on July 1st, 2006. Usually, the federal student loan rate is set off of the ten year Treasury note.

The good news is that there is help; we here at Student Financial Advisors suggest that students consolidate student loan debt in order to get them out of financial peril. Student can use Student Financial Advisors' student loan consolidation services to significantly lower their monthly payments. Consider the above payment of $467.32 for a $40,000 federal student loan. If you consolidate federal student loans through Student Financial Advisors you can cut that payment to as low as $238.00 monthly. We can also knock down the effective interest rate to 5.89% and knock it down to 5.29% if you are still in your grace period. This will provide the necessary student loan debt relief that students currently need. Furthermore, if the student starts to earn more income there is no pre-payment penalty whatsoever. The student is free to payoff the whole loan or simply sends extra money each month to pay down the principle. This is especially useful for careers that take some years to earn a six figure income, one example is our special chiropractic student loan debt consolidation.

If your student loan payment become to overwhelming the worst thing you can do is ignore them. Even though the loans are backed by the federal government, lenders are obligated to try and collect the debt. This means collection agencies, added interest, default, and credit problems.