Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I too am buried in Studen Loans, I am paying $450/month to try and get myself out from under this rock. However, I am paying $450/month to bring it down, I actually do not have to pay anything a month. Here is what I have found to be the best way to pay back your loans without getting consumed with the interest payments.

The first thing you need to do is combine all of your students into one, the following link will help your cause(http://www.eduservices.com/). Once that is complete you will need to find out how much of your student loans are subsidized and unsubsidized. Here is the difference, interest of subsidized loans when in deferment, will get paid by the government. Unsubsidized will not get paid when in deferment, yes the interest will be added to your principal.

Assuming you have a job, fine out if your company helps with tuition reimbursement, then you want to look for schools around you that offer something to help your career. While you are in school you can defer all of your loans, if they are subsidized the government will pay your interest down, and if you are working, you should continue to make payments to bring down the principal. If you have unsubsidized loans, contact the loan company and tell them that you would like for all of your payments while in deferment, to be applied to the unsubsidized portion of your loan.

Not only are you paying down the princpal of your loans , you are having the government pay your interest on these loans (if subsidized), and you are bettering yourself and your career at your companies expense (if they offer tuition reimbursement). This is a win win situation, and beats working for peanuts in a overpopulated inner city school for 3-4 years.
Print the post  

Announcements

Paying For School Guide
Trying to Tackle Tuition? The Motley Fool's Guide to Paying for School will help you fight those rising education costs.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.