Question about Student Loans.?

Hello, everyone. This is a Q for people with experience in paying back student loans. I recently graduated college and have been often getting calls from student loan companies telling me they will get me the lowest fixed interest rates for the next 20 years.


My thinking is "Do I really need them to pay back the loans? Do most people pay it back with the help of student loan companies? Can't I pay back the student loans myself?"


I also wonder if they really gaurantee the lowest fixed interest rate or it is based on certain conditions.


Can anyone enlighten me on what I should do about the calls from the bunch of student loan companies?

Question about Student Loans.?
Are you getting calls from your loan servicer or a consolidation company? Consolidation services allow you to pay off all the old loans and make them one loan with a longer term of repayment at the same or somewhat lower interest rates for a longer period of time (student loans through the original lender are paid off over 10 years at the rate at which you previously borrowed them or the current rate). This can translate into significantly more money being repaid because 4% interest over 10 years is a lot less than 4% over 20 years.





I would strongly suggest that you look at the projected repayment amount on your loans now (go to the servicer's website or call and ask them) and use that figure to consider the projected repayment amount from any consolidation loan to make the best fiscal decision for yourself. There is one other factor to be considered here. Will your monthly repayments be higher than you can afford to make? Do you qualify for income contingent graduated repayment if they will be? Graduated repayment can keep you from the need to consolidate for longer periods and help you to maintain sound fiscal footing. Now is the time to be asking that question of your servicer. Certainly many people repay their student loans on their own without consolidation, and you can, if you are making enough money, repay them faster than required and reduce the amount of total interest you will pay without penalty.





You've asked a significant question that many students fail to ask until they have no choice but to go to consolidation in order to get out of default and you've asked it at the right time. Please contact your servicer and get the details specific to you and your loans and make a considered, thoughtful financial decision here.