Save On Your Student College Loan

For most people, college education isn't free. Most of the time, students turn to college scholarships and grants to help them out. But then, there are only so many scholarships a person can qualify for (try as he might, an Asian male engineering major can't get business scholarships for African-American women). If you don't meet the the income guideline for Pell Grant applications, then school loans are the next best thing. But before getting one,learn how to minimize your overall student college loan payment.

If you haven't taken on a school loan yet, now's the time to strike -- student college loan interest rates are at an all-time low due to the current economic climate. So while it isn't quite like the free money you'd get by meeting the income guideline for federal Pell Grant applications, it's definitely a better rate than what people got when the economy was strong.

Loans for School Tips

If you're like the countless others who currently have school loans and are either paying them off in installments or anticipating starting payments in the next year or two, here are some handy college student loan survival tips to help minimize payments.

• Consider consolidation for student loans: If you have multiple school loans, current interest rates are in your favor. Thus, consolidating student loans might lock you in at a better interest rate and a streamlined payment process. However, do your research as certain rules apply. For example, federal school loans and private student loans can't be consolidated together.


• Creatively allocate extra money: Let's twist around the above example and pretend you ARE an African-American woman studying business and you get scholarships for African-American women (or whatever specific scholarship you might qualify for, or if you suddenly meet the income guideline for Pell grant applications). If you're a student suddenly coming into money, you can use some of that to pay off the principle of school loans. Do this carefully, as uncontrolled spending can actually get you in more trouble. However, if you're within a year of graduating and you come into some extra money for college, look at the big picture before spending it. If you're currently paying off student college loans and you get a bonus (or hopefully a winning lottery ticket), it's smarter to pay off your principle than buy that new TV you want.


• Maximize discounts and bonuses: Different student college loan lenders offer different rewards for payment programs. Some reduce rates when you sign up for automatic debits, and others reward long-term on-time payments. Talk to your lenders and see what you can work out; while it might be as cumbersome as college scholarship applications, it's well worth the bonus.


• Understand deferment: If you've already graduated, you're probably sick of reading fine print after examining the income guideline for Pell Grant applications or countless scholarships for African-American women (assuming you're an African-American woman; if not, insert your appropriate demographic). Well, it's time to suck it up and re-examine those college student loan details. Things like deferment and repayment possibilities might make your finances a lot more flexible, especially if you're just starting your career. There's no cookie-cutter approach to deferment; some plans allow for student college loan deferment under financial hardship or other circumstances, and if you qualify, you can maximize your finances.

In a perfect world, we'd all meet the income guideline for a federal Pell grant, but student college loans are a harsh reality for a college education. However, it doesn't have to be the nightmare some people make it out to be; with a little bit of research and determination, there are ways to reduce your overall payment or make your monthly student college loan payment easier to handle. Just remember to read the fine print before you sign on the dotted line, OK?