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

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