Wednesday, July 30, 2008

Student Loans

I don't know about you but I still have a couple of outstanding student loans that I am still paying on every month. I graduated in 1992, and in the beginning had a lot of trouble making ends meet so I would take advantage of deferments. I now wish that I wouldn't have done that because now I am still paying on these loans and I have paid thousands of dollars of unnecessary interest.

If you have any loans, you might want to consider student loan consolidation. If you have more than one, you should try consolidating them into one loan. It can make your monthly payments easier and it can actually reduce the payment amount. If you chose to make the payments automatically from your savings account, you can get a 0.25 percent reduction in the interest rate and this can add up to hundreds of dollars in savings at the end of the loan. If you decide to consolidate your loans in the 6-month grace period from the time you graduate, you will benefit from a 0.6 percent interest rate reduction.

The student loan center can help you with Financial Aid Basics as well as consolidations and student loan refinancing. Be sure to check out the Frequently Asked Question section of the website, as there is a lot of useful information there.

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1 comment:

rockcreekcreations said...

I'm with you on the student loans. I also graduated from college in 1992 and JUST finished paying of my final student loan. And I only went to college for 5 years. I'm not too sure about the strength of my ROI on that investment! :-)