Lower Your Student Loan Payments

If you have multiple federal student loans with varying interest rates repayment terms and payment due dates a direct consolidation loan is a convenient way to roll all those loans into one.

Lower your student loan payments. If you took out your student loans before july 1 2014 your payment would be as low as 77 per month. There are no prepayment penalties on federal and private student loans so borrowers can make extra payments on the principal balance of the loan. But your total payment would balloon from 39 960 to 51 600. Plus borrowers with loan balances exceeding 60 000 can extend their loan term up to 30 years according to minsky.

These are almost always a better deal than private consolidation. A loan with same amount and interest rate repaid over 20 years would reduce your monthly payment to 215. If your loans are federal stick with a federal consolidation loan which you can apply for through the department of education. These loans take all of your existing student loans and merge them into a single loan.

Depending on how much you borrowed to pay for college that number could be in the thousands for the 2 5 million borrowers with a six figure debt. Remember you need to re certify your income every year and your payment could change as your income changes over time. You can often negotiate a lower monthly payment on this new loan. Apply for an income driven repayment plan 2.

Whether you are struggling to make payments or simply want to free up money for other financial goals these are ways you can lower your monthly student loan payment. 1 reduce your interest rate through refinancing 2 extend your payment term or 3 take advantage of an income driven repayment plan. If you have 50 000 in student loans and your agi is 50 000 per year you could qualify for pay as you earn paye with a monthly student loan payment of 265 per month. The lower loan balance means more of each payment is applied to principal and less to interest.

Sign up for a graduated repayment plan 3. Here s how to lower student loan payments. You don t have to be stuck with sky high payments if you try these 10 strategies to lower your student loan payments or repay your loans early. If you took out your student loans after july 1 2014 you could lower your student loan payment to as low as 52 per month.

Refinancing your student loans can help you lower your monthly payments. Consider an extended repayment plan 4. This essentially replaces your existing loans with a new one ideally one with a lower interest rate. Normally this yields a lower loan balance without changing the monthly loan payment.