Managing Student Loan Debt

The average American with student loans from their college education will spend years, or even decades paying off these loans.  Many consumers who find themselves in severe debt will even delay life events like marriage, children or even buying a house.  With the average student debt around $20,000 and recent developments in federal student loan interest rates, there a few things to take into consideration. 

As of July 1, 2006, the interest rates on federal student loans will experience its largest increase to date, from 5% to 7%.  This can mean a lot for your student loan debt, for the average consumer, debt consolidation can be an essential way to keep the interest rate on your student debt low.  By consolidating now, you have the benefit of locking in a low interest rate now for the life of your loan.

The key to managing student debt is to consider all of the options, while not putting your life on hold.  By consolidating your debt and locking into a low interest rate, you are then able to focus on paying off other debt that may have higher interest rates, such as credit cards.  With a manageable plan, marriage, children and houses are still a viable option—don’t stop your life while you wait to pay off your debt, just prioritize your debt and move on with life. ■