How long will it take you to pay off student loans in full? This is a question asked often. If you are like most of the people who have taken out one or more college loans over the years, you probably have an idea of how long it can take you. Now, the truth is that different types of student loans have different repayment terms. Each type of loan is a little bit different.
It would be a good idea for you to sit down with your loan servicer and have them tell you exactly how much it will take you to pay off your student loan. This will help you to decide whether or not it is truly financially feasible for you to do so. You will also have an idea of the interest rate you are likely to be charged once repayment has begun. You will want to know this before you make a decision on which college loan to defer. It might not be the best loan for you to defer.
Of course, you also need to consider the grace period you are likely to get at the end of each year. Many student loans offer six month grace periods. The longer you have paid on your loan, the longer you will have to pay it off. Generally, the longer you have deferred the loan, the less you will have to pay each month.
Once you begin making payments on your loan, you will be able to see the grace period extend its life. Generally, it will not extend past the time you graduate from school. If you plan to go into business for yourself, you might be able to take some loans out after you graduate. If you are in a situation where you are looking for a higher paying job, you may find that having a couple of student loans waiting for you after graduation will be very helpful in finding the job of your dreams. The sooner you start paying off your student loans, the sooner you will have the finances you need to get started.
What if you lose your job? Most students have some kind of unemployment benefits. If this is the case for you, talk with your loan servicer about enrolling in one of the federal programs that offer subsidized and unsubsidized loans. This will help you to lessen the amount of money you are paying, so you can afford to make payments.
Is there anything else you can do? You can go online to look for loan consolidation companies. These companies will work with you to consolidate all of your debts into one loan. They will take a look at the interest rate you have to pay, the total amount of your debt, and your remaining time to complete your education. With this new loan, you will only have to make one payment instead of several.
Can you pay off your student loans in full by just paying the interest on a monthly basis? The answer is probably yes. If you can work to reduce your monthly payment and concentrate on paying off the principal of the loan over a longer period of time, then you can certainly make it happen. Talk to your loan servicer to see what kind of assistance you may qualify for.
If you feel like you cannot handle a large lump sum payment, consider consolidating your student loan debts into one. This way you have only one loan with one payment. When you consolidate, your interest rates will decrease, and you will save money in overall cost. It may not be feasible to pay off your student loans in full right away, but stick with it! You will eventually be able to successfully complete your education and get your degree. You deserve it!