How to pay back student-loan debt — here are all your options - Business Insider

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How to pay back your student-loan debt, no matter where you start or what type of loans you have MasterYourMoney

will require you to begin making fixed monthly payments right after your loan is disbursed. You'll save on interest this way, but it's not always the most realistic option for cash-strapped students.can keep your balance from growing too quickly beyond what you initially borrowed. You'll pay enough to cover the interest that's accruing — or a portion of it — while in school, leaving your principal balance alone until after you've graduated.

Consolidation is a good strategy for streamlining payments and even lowering the monthly amount due. You can then choose a new repayment plan for the consolidated loan. Unfortunately, you lose some benefits when you consolidate federal loans. If you've already made payments toward public service forgiveness, for example, your count will restart when you consolidate. Also, the outstanding interest on each of your loans will be rolled into your principal balance, meaning your total repayment amount over time will increase.is a form of consolidation that can help streamline student-loan payments and, ideally, save you money.

The primary benefit of refinancing is locking in a lower interest rate or shortening your repayment period, but some borrowers alsoof their debt obligation. It's possible to refinance federal and private loans together, if you have both, but you'll lose federal benefits like income-driven repayment, deferment, and forbearance.

You can apply for a refinancing loan at no charge through a private lender, but keep in mind that your options will vary based on your

 

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