Friday, August 7, 2015

The Skinny on Student Loan Debt

Unless you have rich parents, get lucky with scholarships, or work your butt off all the way through college, it’s pretty difficult to graduate without student loan debt.  


If you have loan debt, you’re not alone...even though paying it off can make you feel like you are. The good news is that, if you choose the right payment plan and make some other smart choices, you can have your loans paid off before you know it.

The Ten Year Mark

Most people pay off their federal student loans via a 10 year repayment plan. However, if you’re able, it’s always smart to pay more than you’re required. If you do that consistently enough, you could end up shaving several years off your repayment period.

If the ten year mark is giving you trouble, then you may want to consider consolidating your federal loans into a single direct consolidation loan, which, depending on amount and other factors, could give you as much as 30 years to pay off your loan.

However, if possible, that basic 10 year plan really is your best bet. You’ll pay more each month, but you’ll also face lowered interest and be able to pay off your loan with as little money required of you, in the long run, as possible.

Alternatives

If the standard options don’t work for you, don’t fret just yet. You may be able to opt into a graduated or income-based plan that will take into account your current financial state.


You’ll need to talk to your lender to see what your options are, but don’t worry. There are all kinds of income-related plans available to assist you. As long as you take advantage of the best possible option available to you, you can pay off your loans with minimal stress, and, in many cases, in minimal time.

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