Travis Hornsby, founder of Student Loan Planner, suggests creating a refinancing ladder to maximize your savings. “The way you do this is start with a payment you can afford pretty easily, say, a 10- or 15-year loan. Pay extra when you have extra, and you’ll cut down the amount that you owe rapidly,” Hornsby explained. “After a couple of years, you can refinance again to a seven-year loan, often with the same payment but with a lower interest rate. Finally, you could refinance one more time to a five-year loan before you finish paying off the entire amount.”

College/universities may charge a credit card processing fee (or convenience fee). This is in addition to the interest charges the credit card company imposes. Many lenders waive the origination fee. For certain borrowers, this may even make private student loans an attractive option over federal loan options (such as Parent PLUS and Grad PLUS programs).


“People are borrowing twice as much as they were a decade ago because grants and scholarships are not keeping up with the escalating costs of college,” says Mark Kantrowitz, the publisher of FinAid.org and FastWeb.com, free online financial-aid resources. To wit: Graduates of the class of 2011 have an average of $27,200 in debt, up from about $17,600 in 2001.

to have an outstanding balance on a Federal Student Loan received under the Direct Loan Program and not the ones under the  Family Education Loan (FFEL) Program, the Stafford Loan Program, the Perkins Loan Program, the Grad Plus Loans Program, or others Federal loan programs. If you have FFEL or Perkins Loan program, you can consolidate it. Learn more about a federal student loan consolidation.
Receiving federal student loans like the Direct Subsidized and Direct Unsubsidized Loans starts with completing the FAFSA, or Free Application for Federal Student Aid. You can perform the entire process online at the FAFSA website. Some loans are awarded based on your family’s financial need, so you’ll want to gather the following pieces of personal and financial information when applying:
After completing your FAFSA, you’ll receive a financial aid award letter from the colleges you listed on the form. The timing on these letters can vary from college to college. However, if you’ve already received admissions acceptance from a college but no financial aid award letter, you can call their financial aid office to inquire about the letter’s status.
If you’re thinking about signing up for an income-based repayment plan, this may not be the best choice if you want to pay off students loans fast. Income-based Repayment or Pay As You Earn plans may not cover all of the interest that’s accruing, which can lead to capitalized interest. In the short term, you may feel better covering your payments, but you may end up owing more in the long term.
I think everyone can agree that student loans are no fun to pay back, but ignoring them can have serious consequences (and it won’t make them go away.) If you’re worried about your student loans or don’t think you can afford your payments, contact us for help. No matter what your financial situation is, we can help you find an affordable repayment option. For many, that could mean payments as low as $0 per month.
Each federal student loan borrower is assigned to a loan servicer (some borrowers may have more than one servicer, depending on the types of loans you have). Your loan servicer is a company that collects your student loan payments and provides customer service on behalf of the U.S. Department of Education. This is a FREE service. There are many companies out there who offer to help you with your student loans for a fee. Do not trust these companies. Remember: You never have to pay for help with your student loans. If you need advice, assistance, or help applying for one of our repayment programs, contact your loan servicer. They can help you for free. Just remember to keep your contact information up to date so they can reach you when they need to.
If you decide to take out a loan, make sure you understand who is making the loan and the terms and conditions of the loan. Student loans can come from the federal government, from private sources such as a bank or financial institution, or from other organizations. Loans made by the federal government, called federal student loans, usually have more benefits than loans from banks or other private sources. Learn more about the differences between federal and private student loans. 
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