college loans?

Question

i am putting myself through college I have already taken our about 26,000 dollars in college loans and i am coming up on my 3rd year i have averaged out that my total debt out of college will be around 70,00 dollars.... is this way to much... how can i consolidate when im out... does this sound normal or had any one else been put in this position... what will be my monthly payments?

Answer 1

The bad news: That level of debt is a little high for an undergraduate program. The average undergraduate student graduates with just over $19,000 in debt (that's for all four years). (These average numbers are going to be higher for students who attend private colleges.)

The good news: There's no question that college is expensive and debt is on the rise -- but you're certainly not alone (I've seen much worse) and there are ways to ensure that your monthly payments will be manageable. As you mention, consolidation is an excellent option for students in your position. It allows you to (a) fix your loans' interest rate and (b) extend your repayment term beyond the usual 10-year plan. If you repay your $70,000 over 10 years, your monthly payments will be about $805 (at the current 6.8% rate). But if you pay that same $70,000 over 30 years, your monthly payments will be reduced to $456. You can use the loan calculators on finaid.org to calculate these payments (http://www.finaid.org/calculators/loanpayments.phtml).

You should be applauded for taking charge of both your education and your finances. It's not easy and your situation might not be "normal," but it's manageable. If you find yourself in a pinch when you graduate, make sure that you call your lender to let them know. Most lenders will work with you during those months when you can't quite make your payments; they can put you in a an "economic hardship deferment" or a "forbearance," as long as you request it before it's too late.

One last thing: before you consolidate, make sure to look into the various types of Loan Forgiveness available to students entering certain career fields. If you plan on pursuing teaching, law enforcement, some health professions, or entering the military, you might qualify for loan forgiveness (particularly on your Perkins Loans). If you do, you can only obtain the forgiveness benefit on the portion of your loans that you have NOT consolidated.

Good luck!

Answer 2

Good advice from the above answer. You may also want to consider taking steps while you're still in school to help manage your debt, such as making interest payments on your student loans if you can, and keeping your other spending under control. Here's some additional information on being smart about your debt: http://www.salliemae.com/before_college/planning-wisely/debtsmart/in_school/in_school.htm

And here's some info on student loan consolidation, including an FAQ and a calculator to show you what your payments will be, depending on what repayment plan you choose. http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/student_loan_consolidation.htm