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Is it allowed, and is there a benefit to using new studet loans to pay off the oldest ones?

I am in graduate school, and the student loans are piling on. I notices some of the older, unsubsidized loans are starting to accumulate interest. I wonder if it would be wise to use my refunds to pay off these older student loans? #graduate-school #doctorate-degree #student-counseling #student-affairs

Thank you comment icon Ginna, It can be daunting but student loans are something that you have to look at with an objective lens. You want to lay out the parameters of your loans -- look at the principal, interest rates, subsidized/unsubsidized, etc. And then start attacking the unsubsidized highest interest rate ones first. And while the rates are relatively low, I'd look to consolidate as much as you can under a low fixed rate so that you can predict how much cash you'd have to generate each month to address it. Also, I'd keep an eye on any government or employer programs that either pay off all or portion of your debt with certain years of service. I know many folks who do Teach for America or go through employer led programs to get significant portions of their student loans forgiven. I hope that helps and good luck! David Huh

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Tamara’s Answer

Hello Ginna,

In addition to what was shared below, you could consider investing the refunds to possibly earn a higher interest rate than the interest rate on the loans with the idea of using the invested monies to help pay off the loans at a later date. You possibly could take advantage of student loan forgiveness plans if you are eligible for them. Think about calculating how much you'll end up paying in interest during the years of payment counted toward forgiveness as well as consider the tax advantages or disadvantages that might be associated with any particular loan repayment plan. You could engage in a search for graduate school financial aid other than loans to avoid further building loan debt. You could seek additional financial aid other than loans from your school if you haven’t done so already. Also, you could consult a financial expert for ideas on managing and growing your money.
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suraj’s Answer

One thing we can all agree on: paying off student loan debt isn’t fun.


One of the worst feelings is tearing open your paycheck or seeing your direct deposit hit your bank account and getting excited, only to remember that you need to use a huge chunk of that money to pay your student loan debt.


With student loan debt, it might seem like this feeling could last forever. But it doesn’t have to. But if you want them to go away faster, you’re going to have to upgrade your student loan repayment strategy.


Here’s our guide to paying off student loans faster with strategies that will work for just about anyone.

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