Once you have a steady job, a salary and a credit history, call a few lenders or talk to a financial advisor about your options. If you have several different loans, you might consider consolidating them. Or you may be able to refinance at a lower interest rate. You could also choose to extend the terms beyond the standard 10 years to lower your monthly payments, Josuweit said.
But weigh the options first, he cautioned. Consolidating or refinancing to a private loan will forgo the safety nets that come with a federal loan, including income-based repayment programs and loan forgiveness, for those who would qualify.
Additionally, extending the term of the loan means you ultimately will pay more interest on the balance.
Finally, revisit your loan every six months to a year, Josuweit advised. “Changes to your lifestyle will change your income and expenses and that could impact your repayment plan,” he said.
And don’t get discouraged by slow progress, he added.
“Your best income generating years are still to come, so there is hope — it just takes time and patience,” he said.
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