2 answers

What is the best way to pay college debt?

Asked Paulding, Ohio

I plan on attending a private university for four years and then plan to move onto graduate school. After that many years of schooling I will most likely have a sizable amount of debt. #money #debt #collegedebt

2 answers

Simona’s Answer

Updated Washington, Washington
Hi Kaylee, I agree with Yvonne Ruffner. If you start to pay on the loans while in school, and before they are officially due, you are paying on the principal (which is the actual loan balance). Once you graduate, the loans become active and due, so whatever you pay may primarily go to interest until you make a good dent in them. If you can swing paying on them while in school, I recommend it. Since the school is private, they may have some financial aid options available for you. Visit the financial aid office right away and look into them. Some options will include: partial scholarships, financial aid (pell grants), work study programs, etc. If you can do these then this will cover some of the debts and you can take out less in school loans. Also look into private scholarships to reduce your loan burden from websites such as www.fastweb.com and www.scholarships.com. If you are able to work part-time while in school then this can be an additional option to paying for school and keeping your loans down too.

Yvonne’s Answer

Updated
Hi Kaylee, In my experience, the best thing you can do is make a plan! Depending on the types of loans you have, it will differ what your payments look like. For example, if you have government undergraduate loans, some types allow for deferred payments and interest while you're in school. So, if your loans are set up that way you wouldn't have payments during grad school. That doesn't mean you should avoid paying them during that time period, but it would help your overall total to not have interest running up while you're in grad school. Something that you may find really helpful is to set up a budget so you understand your financial commitment and can ensure you are setting aside the money required to pay your monthly statement. Any money that you can pay extra toward your loans will save you money in the long run because you will pay less in interest. Any loans you an start paying off while you're still in school will lessen your loan burden an decrease your monthly payments when the payments come due!