Cut Down your Student Loan Payments

Cut Down your Student Loan Payments

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by Samantha A. Bow

Do you have student loans? Have you graduated from college and are now overwhelmed by your student loan payments that have grown more than you realized? You are not alone. Most college students graduate with at least some student loans.

College is expensive and it takes a lot of money to pay for it, a lot of money that most people don’t have. This leads to a lot of money taken out on loan. Once you graduate college you are required to pay these loans off, and it can cost you a lot of money every month.

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A lot of recent college graduates have trouble finding jobs. Whether you have the job you’ve been searching for or not, you still have to pay back the money for your student loans. Even if you do get a job right when you graduate, you’re not going to be making what you really want to be earning.

With a low income, you might have to choose between paying off student loans and moving out of your parents’ house. If you have no choice but to live on your own, heavy student loans can be more than a burden. If you can’t pay them, you are damaging your credit and possibly losing your chance at buying a home.

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Consolidation is one way to lower your monthly student loan payments. If you have several loans from the government and other private loans, you probably have to pay different amounts at different rates. You could be paying 6% on one loan and 15% on another. With different rates and different loans it is disorganized, but also it could be costing you a lot more money.

With loan consolidation, you are gathering all the loans together into one loan. If you have several loans, you can make the minimum payments and focus more on the high interest loans, but if you can only afford the minimum payments, there is no way to more quickly get rid of the higher rate loan payments.

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With consolidation, you can gather all your loans under one rate. Even if it’s not as low as the lowest rate, as long as it is lower than the average rate you were paying on all your debt before, you will be saving money.

After graduating college, paying off your student loans should be top priority. You must get out of debt in order to maintain good credit and build your financial wealth. Do it hte best way you can and save.

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