How to Save Money on a Student Loan Repayment
There are a few ways of saving money on student loan repayments. It's no secret that many college graduates face mounting student debt when they leave the university. There are student debt forgiveness programs available, and some students may choose these alternate routes of saving money on student loan repayments.
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How to Save Money on a Student Loan Repayment
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Consolidate your loans. Consolidation for student loans is available for government loans, as well as private loans. Students who choose student debt consolidation may be eligible for reduced interest rates. The government site at LoanConsolidation.ed.gov notes that people who have variable rates on their loans may benefit from the fixed rate that comes with a consolidation package.
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Sign up for recurring electronic debit payments for your direct loans. The official site at DL.ed.gov has information on how much money you can save by enrolling in the automatic debit plan. This may change without notice.
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Sell your federal loans to a private bank. If your interest rates are above 7 percent, you may be able to sell that debt to a private bank and lower your rate to 4 or 5 percent. Contact your bank to see what plans are available.
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Find a student loan forgiveness program. The government site at Ed.gov has information on various job opportunities for graduates that include money to pay off student debt. Teachers who work in low-income areas, public service employees and people in health care fields may qualify for these debt forgiveness programs. The Peace Corps and AmeriCorps also have stipends at the end of service that is intended for student loan repayment.
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