Sallie Mae Offers Advice on Managing Student Loan Debt After College
April 13 2006 - 6:15AM
PR Newswire (US)
RESTON, Va., April 13 /PRNewswire/ -- Students who are about to
graduate from college may be excited to begin the next chapter in
their lives, but they also should remember what helped get them
there: student loans. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a ) "When
students graduate from college, the first rule of thumb is to
create a budget and stick to it. Be sure to make your student loan
payments on time, every time," says Martha Holler, a spokesperson
from Sallie Mae, the nation's leading provider of education
funding. Once a student graduates from college, leaves school or
drops below half- time enrollment, there is a six-month window of
time known as the "grace period" before they need to begin repaying
their student loans. For many students, an education loan is their
first borrowing experience. The more proactive they manage that
education debt, the better. Not only will borrowers save money, but
they also will get their credit history off to a good start, making
applying for the next loan -- whether for a car, house or further
education -- all that much easier. Many lenders, including Sallie
Mae, offer interest-rate reductions or account credits for timely
payments, making it all that more important to make student loan
payments on time. Holler advises graduates to consider a repayment
plan that is consistent with their income, lifestyle and other debt
obligations. In addition, students may: * Prepay student loans if
possible. * Take advantage of borrower benefits such as
interest-rate reductions or rebates and on-time electronic payment.
* Research loan forgiveness programs. * Investigate financial
planning programs. For borrowers having difficulty making their
payments, there are options such as repayment and deferment that
can help ease the burden, especially for new graduates. "Remember,
failure to pay back your student loan can have serious financial
consequences," says Holler, "and could permanently damage your
financial future. If you are experiencing difficulties with loan
payments, contact your lender as soon as possible. The earlier you
take action, the more options you will have and the less likely it
is that your temporary financial difficulties will have a long-term
negative impact."
http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a
http://photoarchive.ap.org/ DATASOURCE: Sallie Mae CONTACT: Erin
Korsvall of Sallie Mae, +1-703-984-5136 Web site:
http://www.salliemae.com/ Company News On-Call:
http://www.prnewswire.com/comp/827187.html
Copyright