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Friday, October 7, 2011

Smart Ways To Pay Off Student Loans


If you are presently a college student or were one in the past, there is a good chance you are carrying some student loan debt. Student loans are essential for many students, but the burden of repaying them can last long after you have graduated. Fortunately there are some strategies that can help make student loan repayment one less stress. You should definitely take minute to check them out if you are looking for smart ways to pay off your student loans.

Consolidation
Do you have multiple student loan payments due each month? If so, you know it is easy to get confused and forget a payment here and there. Loan consolidation can help by combining all or most of your loans so you will only be responsible for one monthly payment. Although consolidating loans may not lower the interest rate you are paying, it will be much easier to remember to pay one payment every month instead of multiple. Sometimes with loan consolidation, you can extend the life of your loan as well, which can result in a lower payment amount. This of course will not get your loan paid off quicker, but it can help if you are having financial issues at the time. It is also good to remember that federal and private student loans have to be kept separate. If you have a combination of federal and private loans, you can always consolidate them separately and have two payments, one for federal and one for private.
Graduated Repayment
There is also the option of graduated repayment when it comes to student loans. This can be helpful because it allows you to lower your monthly loan payments for a period of time (usually up to four years), without extending the life of your loan. The way most graduated repayment programs work is by charging you only interest during the timeframe in which your payments are lower. Once the time is up, your payments increase gradually so that the loan still gets paid off in time. Depending on the amount of student loan debt you have, graduated repayment programs can stretch your payments out for up to 30 years. This option can be of great help to those who need it.
Have Someone Else Pay
There are certain instances in which you can actually have someone else pay off or forgive your student loans. Joining service organizations such as AmeriCorps can earn you grants that help pay off your student loan debt. Also, some employers use loan forgiveness as a way to recruit potential employees. If you get a job with these employers and work for a certain amount of time, they will in turn pay off your student loan debt.
Public service loan forgiveness also exists. In some places, if you hold a public service job for at least 10 years, any student loan debt that remains will be written off and forgiven. Occupational fields such as nursing, law enforcement, and education are all examples of public service. If you are thinking of entering a public service field, make sure to look into the student loan forgiveness programs that may exist. The programs may vary in terms and conditions depending on the position, but they are an excellent way to get your loans paid off.
These are some smart ways to pay off your student loans. Remember, the absolute smartest thing to do is pay as much as you can on your loans, that way they will get paid off as fast as possible. Since that is not always feasible, one of these options may be able to help you.
Guest post from Quinn Green. Quinn writes about accredited online degrees for OnlineDegree.net.

1 comment:

  1. Wow I didn't knew about public service loan forgiveness. Learned something new! Although that can't be the only solution though, if student loan calculators were used more often they can be able to fix their financial affairs then.

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