Monday 26 March 2012

Student loan repayment before you graduate

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Class of 2016 Christopher Newport University   update
Does student loan repayment really matter when you're still in school?

Yes! Yes. Seriously, yes. And there's at least one tangible reason why: the earlier you prepare to pay off your debt, the easier paying off that debt will be. But what does "preparing" really mean? Simple:

Understanding the power of interest

The cost of your debt isn't static. The longer it takes to pay it off, the more it'll cost. Every $1 you contribute now (you can make payments on your student loans even before you graduate!) could save you up to $2-3 over the life of a typical loan.

Remembering to take advantage of your deferment period—when it arrives

It's a good time to start saving your money so you can stay ahead of your impending payments.

Avoiding new debt

Especially from high-interest credit cards. Your student loan debt will be a big enough burden on its own.

Learning your repayment options ahead of time

PayBackSmarter can teach you how to pay your loans back faster, which makes them cheaper. Plus it's online. It's fast. It's easy. And the best part? It's free.

Tip of the week
The average college graduate has over $25,000 in debt upon graduation.

But what does that really mean? A little math for you: if you have a 6.8% interest rate and a 15-year repayment period, that debt could end up costing you almost $40,000.

From the blog
The graduate's guide to repayment

Since you can't avoid paying the money back forever...

Toolbox
PayBackSmarter helps you pay back more effectively

Gauge how long it'll take you to get out of debt, how much it'll cost you, and how to do it faster.


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