How to Pay Student Loans Online

Now that your degree has led you to a job that allows you to afford expensive computer equipment, it's time to pay your student-loan bills online.

Difficulty: Moderate

Instructions

Things You'll Need:

• Internet Access
• Bank Account
• Computers

1. Find out whether the bank that holds your loan has an online banking and checking program. Check the bank's Web site or call for information. Government lending agencies don't make this service available.

2. Sign up by mail for the bank's checking account.

3. Get a password, which will enable you to access your checking account online.

4. Transfer funds online from the checking account to the student-loan account.

5. Check your monthly statements to ensure that your accounts were debited and credited correctly.

Tips & Warnings

• Although this information may be a little late for you, it's good advice to pass on: Banks offer a variety of student loans. Focus on the interest rate and repayment terms, looking for the lowest rates and the most convenient terms.
• Avoid giving out your checking-account number online, except in transactions conducted at your bank's Web site.
• Keep your checking-account balance above the minimum balance. Some banks charge a monthly fee if your balance drops below $1,500.

on 11/22/2005 You may be able to get a lower interest rate by having your loan paid monthly by automatic withdrawal from your account. Ask!