What is the best way to pay of $37,000 in student loans?

Question

Just finished graduate school and am facing the challenge of finding a job and paying off $37,000 in student loans (hopefully within 5-10 years.) Any advice? Thanks!!

Answer 1

depending on the amount of your monthly payments, you might want to consider consolidating your loans so that you only have one monthly payment. the only problem with that is that you're locked into the interest rate offered at the time of consolidation. if you have stafford loans and the interest rate goes down (by the grace of the democrats in office), you'll be S.O.L.

definitely look into the different types of payment plan options you have. the poster that said just make at least your minimum payments until you can send extra was dead-on. be careful and really think before you choose a graduated plan (monthly payment amounts get bigger the longer you start to repay).

if you are still in your grace period, start making payments and request that the amount be applied to your principal first. you'll want to reduce the principal every chance you get.

it may seem overwhelming, and i'm sure it is since you just graduated, but breathe deep. you'll see the end of your student loans soon enough. honestly!

Answer 2

you're able to consolidate the two loans. yet for now, i might pay down some on pupil mortgage, yet save some in an emergency fund. additionally, in case you pay slightly greater suitable on the pupil mortgage each month, you pays it down plenty swifter and save plenty on interest expenditures over the years. See in case you're able to do this. Why did you want a sparkling automobile? 60 months is an prolonged time. i might've use approximately $3000 to purchase a used Toyota. Oh properly. little ones think of they want a sparkling automobile. silly use of money, IMHO. constantly purchase used, run it over 200,000 miles, save all those years of automobile-funds and interest expenditures in an investment fund, retire a millionaire! Calculate how plenty you've got in 5 years (or so) by utilising putting your automobile fee in a fund or investment that paid you an annualized 7 % over 60 months. (you should use calculators got here upon on yahoo finance or use a economic calculator).

Answer 3

I'd probably stick with the standard payment plan, and make larger payments whenever you are able to so you can get the loan paid off quickly.

Answer 4

The sooner you get it payed for, the sooner you can go on with your life. Make lots of money on what you learned.