7 things you do not know to pay off student loans

Sixty percent into the real world and the student loan debt of graduates from the class of 2011-12 – to borrow $ 26,500, an average of

This is no small change, especially when you taking into account the interest charges will add thousands to repay the debt in the life of the loan. It pays – literally – Understand your payment options

Repayment, you can climb mountains with proper guidance. Here are seven things that can help (or hinder) your debt:

1) You can reduce the 0.25 percentage point, in your federal student loan interest rates immediately with a simple step. Registration through the automatic debit your monthly loan payments, as well as your interest rates. It’s that simple.

2) You can extend the repayment period of your federal loans. Who borrowers in federal loan of $ 30,000 or more may choose to extend the repayment plan, the plan by extending the repayment period is 25 years lower your monthly bill.

3) You can make smaller federal student loan payments – even some of your debt forgiven – if you do not make any money. Income-based repayment plan, such as wages, you make available to borrowers who have a lot of debt relative to income is. The program allows you to 10% of “discretionary” income over 20 years of lending to you (the amount of 150 percent of the poverty line by more than your income), the amount remaining after being forgiven.

4) Delete your repayment plan may cost you. For example, consid uh federal funding teach, providing up to $ 4,000 for those students who committed to teaching in the field of high demand for low-income families at least four years. If you do not complete your service, authorize the conversion of federal direct loan subsidies, or Stafford. This means that the winners of the day you will pay interest received from every penny of subsidy. If you refuse subsidized Stafford loans – by 4.66% of the current rate – to accept the show, Professor, you lose twice, because the batch is converted to higher rates

5) Can provide a lot of small towns. Debt relief. For example, in order to obtain a high return for moving one of 77 rural counties in Kansas, college graduates in recent yearsUp to $ 3,000 per year (up to five years) to help pay back the loan. Other areas struggling ARË follow.

6) You’ll pay for those loans Kansas counties relief organizations such as the Peace Corps or reward and the United States Peace Corps taxes. For example, at a rate of 15% in young adults who forgive loans to apply $ 5,645 reward will trigger $ 847, taxes due next spring.

7) Some of your subsidized Staffords rate hike may play sooner than you think. Until the recent interest in the face of new graduates six-month grace period, they must start repaying student loans deferred. However, issuance between July 1, 2012 and July 1, 2014 loan, interest starts accruing the moment graduates hit the real world. This year’s crop of graduates will be possible during the grace period of the loan portfolio interest income and those without.

To learn more, please see our special report on student loans.