Eliminating Student Loan Debt

Ideas for Getting Rid of Debt from Your Student Loan

College is very costly. After you graduate, the pressure to pay back your

student loan can be a tremendous burden. If you are living hand-to-mouth and

tired of it, here is some friendly advise that may help eliminate student

loan debt completely.

Get a Student Loan Consolidation.

Many lenders are happy to loan the money you must have to pay for your

college expenses. However, these loans may have a high interest rate, perhaps

because of no credit history or imperfect credit when you assumed your loan.

And with more than one loan, that can be a burdensome problem. Consolidating

your student loans can lower your interest rate and your monthly payments. It

also allows one payment instead of several.

You Can Refinance Your Loan

Consolidating can save money through lower interest charges and less per

month payments, but that may not be enough to really help you out. You can

consider refinancing your student loan to stretch out the length of the loan.

This will spread the debt over a longer period of time and thereby lower your

monthly payments by as much as half. You should be very careful about this

option. You could be spending a lot more over the term of your loan.

Don’t Miss Making Your Payments

You want to pay down your debt for good and the most important step you can

make is to pay on time every month. If you miss payments or are late, you

will increase the loan debt and end up paying more in the long run. Be

faithful in making payments and your debt will go away.

Consolidate All Your Student Loans Into One

Pay Less per Month by Consolidating Your Student Loans

A student loan can be a wonderful way to fund your college education and for

some folks the only way, however, these loans must be paid back. When you are

finished with school you may find repaying your loan is too much of a burden.

If this is true for you, consider consolidating all your loans into one, or

perhaps you would just like to save some of your hard earned cash.

What’s the Advantage of Loan Consolidation

Consolidating may bundle all your loans into a single package. You then have

to deal with only one lender and one payment each month instead of one for

each loan. Consolidation also allows you to get a lower interest rate and

thereby save you a lot of money over the life of the loan.

What are the Costs of Consolidating Your Student Loans

Good news since you may lower your monthly payments significantly perhaps by

as much as 60%. Regrettably, however, you could increase the amount of money

you pay over time for the loan. Therefore before you decide to consolidate

you should be very careful to look at the numbers (interest rate and loan

terms). Take the time to learn about and compare the lenders you are

considering.

These Federal Loans are Eligible for Loan Consolidation

Many federal loans have a low interest rates already. Even so, you may be

able to get a lower payment by consolidating these loans. Federal loans that

are typically eligible for consolidation follows:

• Stafford Loans

• Direct Loans

• Perkins Loans

• PLUS Loans

• Supplemental Loans for Students

• Federally Insured Student Loans

• National Direct Student Loans

• Loans for Disadvantaged Students

• Auxiliary Loan to Assist Students

• Health Education Assistance Loan