Q:

What are some methods for paying back student loans?

A:

Quick Answer

Methods for paying back student loans include making a payment plan, making payments before graduating, loan consolidation and enrolling in auto-debit. There are also established programs that can help a student pay back debt and employers who include student loan repayment as part of a benefits package.

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Full Answer

A student can use repayment calculators to figure out how much of the student loan needs to be paid every month in order to pay the loan off within a specific amount of time. The information learned during exit counseling can be used to help pay back the loan if it was a federal student loan. A borrower should also thoroughly read over loan paperwork and see if he or she qualifies for income-based repayment.

A student is accruing interest on a loan while still in school, which is why it is recommended that loans be paid off while students are earning their education. Those who have several smaller debts can consider consolidating them with student loan debt in order to make repayment more convenient. While debt consolidation can extend a student's payback period, it can also increase the amount of interest that has to be paid. An individual should also use caution when it comes to combining private loans and federal loans since some of the benefits that come with federal loans can be lost when they are consolidated.

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