How to Pay Back Student Lines of Credit

Student loans, or lines of credit, are popular options for students to pay for college expenses. The loan terms are favorable and repayment doesn't commence until after you have graduated. There are a few options to consider when determining how to repay your student loans. Deciding which method works for you will be based on your particular set of circumstances.

Instructions

1

Account for all accumulated student debt prior to graduation. It is important to know what your obligations are before you are required to begin paying for it. Student debt can include subsidized and unsubsidized federal student loans, private loans, and credit card debt.

2

Prioritize your debt. It is important to understand how debt works and eliminate the most expensive debt first. Put your accounts in descending order starting with the most expensive debt first. The list will usually look like this: credit cards, private loans, and federal loans.

3

Pay more than the minimum payments on your credit cards (the most expensive debts) and do not use them any more. You must continue to make minimum payments on your other debts during this period. Many student debts have a grace period between graduation and when payments must begin. If this is the case, take advantage and try to pay down expensive debt quickly.

4

Consolidate debt your student debt under one lender, so you can make one payment to one lender every month. Weigh the benefits against potential drawbacks such as a higher interest rates or shorter repayment times.

5

Do not miss payments. Missing payments will lower your credit score and causing lasting damage. If you find that you are having difficulty making your payments, contact your lender immediately to work out a repayment plan you can afford.