The actual business of making payments isn’t

The actual business of making payments isn’t too complicated. Once you select a repayment plan (more on that next), you simply need to decide which method of payment you will setup with your loan servicer. Go to the loan servicer’s website (there’s a handy list above) and create an account to see what options are available to you.

Here are a few tips to optimizing the payment process for you to consider:

• Change the payment due date for your convenience
• Set up recurring payments online
• Elect to receive statements electronicallyBig Boss vote

At the end of the day, choosing whether to

At the end of the day, choosing whether to make interest-only payments in college has a lot to do with each person’s unique situation. While this tactic has the potential to save you a hefty chunk of money, you also shouldn’t stretch your budget or your time too thin while making these payments. However, chances are good that you won’t regret making interest-only payments in college, while a few years down the road you might regret not making those payments. To set up interest-only payments, contact your loan servicer.

While Student B saved $524 in this example,

While Student B saved $524 in this example, that potential savings could be somewhat less or quite a bit more depending on the loan amounts and interest rates in play, as well as how quickly the loan is paid off. Also, notice that the amount paid per month by Student B was not very high, and, although the total savings was only $524, Student B graduated college with about $2,600 less to repay than Student A overall.

Thankfully, there is an option available to those that want to avoid the extra cost of capitalization:

Thankfully, there is an option available to those that want to avoid the extra cost of capitalization: you can make “interest-only” payments while you are still in college. While this might mean getting a small side job (many students have one of those already) and diverting some of your extra spending money, it can end up saving you a decent amount of money in the long term. If you are considering making interest-only payments, make sure to contact your loan servicer so they can provide you with the exact amount of interest accrued each month.

Example: To give an example of what this would look like, let’s suppose there are two students who each borrow a total of $20,000 ($5,000 a year) in direct unsubsidized loans at 3.76% for a four-year college degree.

If you have a subsidized federal loan, the government will be

If you have a subsidized federal loan, the government will be paying your interest for you while you are in college. If all of your loans fall into that category, then you don’t need to worry about paying off your student loans until you finish college (it’s still wise to spend some time learning about the process of repayment, however).

If your loans aren’t all subsidized, then all the interest accrued on any unsubsidized loans while you were in college will be “capitalized” (added to your principal) when your payments become due. This means that you will be paying interest on a higher amount after college. We’ll talk more about this in a minute, but for now, know that if your student loan interest is capitalized, you will end up paying more in the long run.