The Cost of Graduation

submitted: Aug 10th 2008 | by: DavidThomas | Total views: 1 | Word Count: 374 | PDF View | Print Article

The magic day has come. After a lot of hard work and, honestly, a very good time, you have met all the requirements and are ready to graduate from college. It is a glorious time. Well, at least until that first monthly bill for your student loans shows up.

It is the rare college student that has much money on hand at any one time. This does not really change when you graduate, so an invoice for $30,000 or more in student loans can really be a stark reminder of the real world. Ah, but you have options.

You graduated a month ago and get that first bill. You owe $$350 on your loans. Each month. For the next 10 years. Welcome to the real world! So, what do you do? One option is to defer payments until you can get on your feet. Ask your lender.

While finding a new job is a great step towards a new career, it also means that you have no excuse not to start paying off those loans. Whether you change your name, move, or stop picking up your mail those bill collectors will find you. Instead of cowering inside of a closet, consider lowering those payments.

Make no mistake. The loan consolidation is a faustian proposition. You get relief in the form of lower monthly payments, but you will pay much more over the length of the loan. Why? The repayment term is extended to 30 years or more.

Financially, the consolidation loan is a nightmare if you pay it off as scheduled. You will pay tens of thousands of dollars in additional interest. The answer is to make one extra payment a year. This full payment will cut the term of the loan down dramatically.

Going to colleged used to require a reasonable financial price. Now, it is very expensive. This means practically everyone is going to have to pay the piper with student loans. The key is to understand what you are getting into in relation to repayment.

The first thing to understand about repaying student loans is you will eventually pay them off if you stick with it. Pay anything extra you can afford whenever you can do so. Even fifty dollars a month can make a world of difference.

About the Author

David Thomas is with USStudentLoanCompanies.com where you can read free articles such as what are non-teri private student loans?


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