How to Lower the Monthly Payments on a Student Loan

For recent college graduates, student loan payments begin very soon after graduation. Some may or may not have a job right away. Most students choose to consolidate their loans to reduce monthly payments. Here are some good steps to beginning the process.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• repayment plan information
• repayment schedule for each loan
• loan documentation

1. Calculate your total amount of student loans. Gather all paperwork for your new lender.
2. Contact lenders online or at your local bank or credit union. Learn about their rates and terms for consolidation loans. Research various federal consolidation loan programs.
3. Review the rates and terms, and then apply for a consolidation loan with the lender of your choice.
4. Know the time frame in which you plan to repay your loans. This will help to determine your monthly payment and make the consolidation easier.
5. Keep your monthly payments low by extending the repayment period.

Tips & Warnings

• Calculation of total student loans includes private, state, federal and previously consolidated loans, combined and separate. Most programs require that your federal loans equal more than $7,500 before consolidation is considered.
• There is no penalty for early repayment of your loans. If at all possible this is recommended to keep your monthly payments low as well.
• Do not consolidate federal loans with private loans. The federal loans have much better terms than private loans.

Who Can Help:

• Earn an Associate's, Bachelor's or Master's Degree from the University of Phoenix
• Flexible Scheduling, Online Programs, Get Info Now