pay off student loans by studentloans



 Tips on Paying Off Your
      Student Loans

     (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, 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,
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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