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What To Do With Student Loans After Graduation

Mar 31, 2013

Everyone knows that the cost of a college education is increasing dramatically every year. Depending on the type of education you receive the cost could be well into the six figures. This will always make a student worry about what to do post college and what kind of decisions they should be making regarding their student loans and how to repay them.

Student Loan Consolidation


If you currently have more than one student loan you are paying on you might want to check into the option of a student loan consolidation. This is where you take all of the current loans you have and put them into one loan with one payment and interest rate. This can help you to not only pay off your loans quicker but save money throughout the life of the loan. It will also help you when creating a budget for your monthly expenses.

Refinancing the Student Loans


Refinancing your student loans is another option that is available for recent college graduates that are trying to pay down their loans. This is the perfect option if you are having trouble meeting your financial obligations every month and cannot afford the monthly payment you currently have. Many times the way this is accomplished is by working with the lender directly to see what the options are. The most popular of the options is to extend the length of your loan. This will drop your payments every month but you will be paying for a longer period of time. This will end up costing you more money in the long run but sometimes it is worth it to have the option of a less expensive monthly payment.

Borrowing From Family or Friends


Another option for a recent college graduate making their post college decisions are to borrow money from a family member or a close friend to help pay off their student loans. This is a much less expensive way to pay off the loans without paying a large amount of interest. Most family or friends will charge you a small amount of interest if any at all to borrow money from them.

Of course the downside here is that if for some reason you default on the loan and no longer could pay them back if cause a large, uncomfortable gap in the relationship. This is a decision that should be thought about long and hard before making.

Grace Period


A recent college student should also find out if there is a grace period before starting to make their monthly payments on their student loans. Often times the loan companies will offer a grace period of six months or so for the student to find a job in the field of which they graduated. This will help the student by being able to save a little bit of money while looking for a job in their career field.

When making post college financial decisions it is important to be sure that you look at every aspect of your student loans as well as the opportunities that are available to you when it comes to paying them back.




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