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It goes without saying that graduation is a feather in a student’s cap. It opens up greater avenues and improves and increases their potential to get access to better jobs. However, while the benefits of being a graduate are immense, you must also realize that it comes along with a very heavy price tag. College education is not easy as the financial aspect can weigh you down and you may have to pay through your nose. Most of the times, students are unable to single-handedly pay the tuition fees at one go. They often rely on financial institutions like banks to help them meet their dreams. These financial institutions have impressive schemes for students to help them reach their goal of having graduate careers. However, one of the trickiest things about these loans is the simple fact that you need to repay them with an added interest. Most of the students may ignore this and put their loan repayment on the backburner, eventually costing them a lot more than they might have expected. Given below are some important tips that will help you pay off the student loans without any glitches. 1. Understand the loans before you jump the gun: Usually, funding for college education may require you to take multiple loans and therefore, understanding the type of loan that you take is extremely crucial. Generally, you will have to choose between a public loan and private loan. If you have earned the much coveted scholarship, depending on the terms of this scholarship, you may have to pay very less or nothing at all. In such a situation, opting for one loan will be more than enough. However, in the absence of a scholarship or other kinds of monetary benefits, you may have to rely on both the types of loans. When you do so, you must be well aware of the terms that guide each type of loan. Usually, the public loans have a decent rate of interest while private loans have a steeper one. Besides, the duration of repayment may also vary widely. As a rule of thumb, you must first pay off the loans that call for high interest rates as this will help ease some pressure. 2. Your student loan can be forgiven: The public service loan forgiveness program can benefit you immensely if you wish to choose a profession that calls for you to work in the field of public service. Therefore, if you aim to be a teacher or work in the law department or as a medical practitioner for public service or if you wish to join the armed forces, this loan can be forgiven. It is, thus, important that you understand this aspect of your student loan to ease of the building pressure of repaying the loans. 3. Consolidation can be an option: If you happen to fall under the category of students who may have taken up multiple loans for college to have successful graduate careers, consolidation of your loan can be considered as an excellent option as you get to combine all your existing loans, including government and private loans. This ensures that you pay just one loan that will be directed to both, the government as well as the private lender. The biggest advantage in doing this is the reduced paperwork and hassles to keep track of the loans that need to be repaid. However, this does not give you the liberty to pay off the debt as per your will. You need to realize that the combination of these loans will essentially increase the timeline of your debt repayment and therefore, increase the overall interest rates. Author’s bio: Marilyn Turner is a freelance writer and blogger of http://graddiary.com/. She has a professional background in finances and therefore, prefers writing on financial topics including those that may be concerned with graduate careers. She has recently released her very first E-Book, which is based largely on student finances.
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