Consolidatingprivatestudent loans org

Comments may be held for moderation and will be published according to our comment policy.Comments are the opinions of their authors; they do not represent the views or opinions of Money Under 30.When you receive an unsubsidized Stafford loan, the interest clock starts ticking immediately upon disbursement (the date the loan funds were released to pay your academic institution).

In general, you want to do the following BEFORE accelerating your student loan repayment: Money Under 30 has everything you need to know about money, written by real people who've been there.

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Your reduced payment under IBR may not cover the interest on your loans. After three years and for other loan types, the interest will be added to the total amount you owe.

While your debt may grow if your payments are low enough, anything you still owe after 25 years of qualifying payments will be forgiven.

As your income increases, however, you may find yourself with money left over in your budget and wondering if you should start to repay your student loans at a faster clip.

Often times, you may be deciding whether to pay down student loans, save for a home, start investing or attempt some combination of all three.

GRADUATED REPAYMENT PLANThe graduated repayment plan allows you to make lower payments at the beginning of repayment and every two years, your payments will increase.

(Think of it as the professional raise plan; as you move up the career ladder over time, your loan payments also will increase.) Each payment must at least equal the interest accrued on the loan between scheduled payments and can be no less than 50 percent and no more than 150 percent of the monthly payment under the standard repayment plan.

Remember, Stafford loan repayment begins just six months after you toss your cap and tassel into the air.

If you have more than one Stafford loan, you might consider loan federal consolidation, which averages your interest rates and combines all of your previously borrowed federal loans into one monthly payment.

Keep in mind that stretching out your payments over a longer term will reduce the size of individual payments but ultimately increases the total amount repaid over the lifetime of your loan.

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