September 12, 2012
We often get questions about repayment of student loans and loan consolidation options. Here is a quote from the Student Loan Network website:
“Student loan repayment should be seriously considered prior to taking on debt. Typically, it will take students 10 to 20 years after graduation before they are able to repay their student loans in full.”
Review all of your loan documents to insure you know how much you owe. Talk with your lenders about repayment plans. Do a budget and figure out where you are spending your money and if there are ways you can save.
The general advice is to make sure you pay off your high interest debt first. Generally federal loans have more favorable repayment terms than private loans – so weigh your options carefully. Finally, consider consolidating your loans to reduce the number of payments you have to make. (note: you will want to keep your private and federal loans in separate consolidation. Consolidating private loans with federal loans may eliminate the benefits of the federal loan programs).
For more information, visit: http://www.consumerfinance.gov/students/repay/