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How to Avoid Defaulting on Student Loans
Posted on March 6th, 2012 By: Alison
The Federal Reserve Bank of New York recently reported that more than five million student loan borrowers are at least 30 days delinquent on their payments. Outstanding student loan debt totals nearly $900 billion, which means there are millions of students struggling to repay their loans.
There is now a new tool to help college students and graduates find the bets student loan repayment plan. It’s important to find a plan that works with their personal financial situation so that they can manage the monthly payments and pay back the loans as quickly as possible by consolidating federal loans. “Times are tough and graduates are not only struggling to pay back their student loans, but also to understand the repayment options available to them,” said Kevin Walker, SimpleTuition’s co-founder and CEO in a news release. “SimpleTuition developed PayBackSmarter.com to provide current students and recent graduates with a clear picture of their repayment options all in one place. And we highlight how those repayment plans affect them financially over the whole course of repayment.”
By entering basic information about their loans and school, users can find out what their options are for repayment. They’ll see graphs and tables to visually share their personal story. Sometimes even adding a few extra dollars a month to a student loan payment can make a big difference in final pay off dates and total loan coasts. “Student loan debt and the risk of loan default has become a matter of national importance and a major economic concern. PayBackSmarter.com was built to help alleviate these pressures by allowing students to make informed decisions,” continued Walker. “This revolutionary tool is designed for students to use themselves, but some college financial aid offices even plan to use PayBackSmarter.com as part of their student loan exit counseling.”