Tuesday, January 24, 2012

6 Ways to Pay Off Your Student Loans

If you just graduated from college, you might have gotten a lot of students loans to help you pay off your schooling. Once you graduate, you need to start paying your student loans. Depending on how much you owe in student loans, you need to start making a plan to pay off your loans. If you are not smart about your loans, you can owe a lot in interest rates. If you need help paying off your loans, here are some tips to help you pay off your student loans.

1. Standard plan. This requires you to make over 120 payments over 10 years. If you want to have a steady payment plan, this might be a good one for you. It might be harder when you first graduate and easier to pay when you are older.

2. Graduated plan. This plan is for those that plan to make more when they start to get older. This is a good plan for those that plan to get in more schooling. It will help for those that will make more  money as time progresses. You pay less interested at the beginning of the loan, but then as time progresses, you start to pay more interest as time goes on.

3. Extended payment. If you have less than $30,000 in loans, you can stretch your monthly payments up to 25 years. This is a good way to pay your loans off a little bit at a time.

4. Income based repayment. If you have a lot of debt compared to how much you make, you might qualify for reduced monthly payments. Once you hit 25 years, any debt that you still have is forgiven.

5. Income contingent repayment. This is very similar to income based repayment, but it is not as generous.

6. Consolidation. This is a way to combine all of your loans into one monthly payment. You have as long as 30 years to pay it off. It might cost you more to pay it off, but you don't have to worry about remembering to pay a loan.

Paying your student loans is something that you cannot forget to do. It important to pay them off as soon as you can. If you don't, you will be faced with very high interest rates, and you will have to pay much more than you anticipated. Take a look at these different ways to pay your student loans and decide which one is best for you.


About the Author
Tammi Jenkins is a writer for My Colleges and Careers  is a wonderful site that wants to help you succeed in your search for online colleges.

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