FINANCE Tips on Paying Off Your Student Loans NewsUSA (NU) - As a college graduate, it easier to keep track of your pay- you likely are focused on landing ments. your first job, finding a nice place • If possible, make payments to live and settling into the “real during your six-month grace pe- world.” riod. This is a great way to save If you graduated with a sub- money on your subsidized loans stantial amount of debt, however, because any payments you make you would be wise to spend some will be applied directly to the prin- time mapping out a strategy for cipal balance. This lowers the paying it back as quickly as pos- amount of interest you will owe sible. after the grace period expires. According to a recent study by Plus, you’ll be able to pay off your the U.S. Department of Education, loan months earlier than you ex- 26 percent of college graduates pected. borrow at least $25,000 to pay for • Use direct debit to help you their college educations. pay your loans on time every “Today, many students are month. Direct debit is a free, au- graduating from college with a tomatic payment service for bor- significant amount of debt, but are rowers who prefer to make their unprepared for how to deal with loan payments electronically. If it,” said Dick Willey, president and you use this service, you also may chief executive officer of Ameri- qualify for an interest rate reduc- can Education Services, a nation- tion after a specified number of al financial aid services organiza- on-time payments. tion. • Make everyday expenses AES hosts www.youcandeal count toward repayment of your withit.com, designed to help col- loans. When you join Upromise, lege students and graduates be- participating merchants will con- come financially responsible. tribute a portion of what you spend Here are some tips from AES. with them to your Upromise ac- • Consolidate. Consolidating count, which you can use to help your loans can reduce your pay off your AES-serviced loans. monthly payments and potential- For more tips, log on to ly lower your interest rate. AES www.youcandealwithit.com, recommends that you look into where you will find information this option as soon as possible to and practical advice on money lock in a low interest rate. When management, getting out of debt you consolidate, you’ll get just and the potential pitfalls of using one bill per month, which makes credit cards.
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