Reduce Student Loan Payments

Written by Mark Sanfilippo
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There are a number of people who are actively in the workforce and are concerned about reducing their monthly student loan payments. They may want to free up some of their cash flow, or they may want to increase their chances of being able to take out a larger loan. Whatever the reason, it's generally a fiscally responsible decision to try and reduce your student loan payments.

There are a couple of ways you can go about trying to reduce you student loan payments. The most obvious and direct way to do this is to pay off a large chunk of the principle. If you pay off a significant enough portion of the principle, then your monthly payments will drop in accordance.

Of course the simplest sounding solution can sometimes be the most difficult. Coming up with enough money to pay off some of your principle can be well nigh impossible. Fortunately there is another, perhaps easier way to lower your monthly student loan payments by a potentially significant amount.

Consolidation: Safe, Easy, and Effective

Student loan consolidation can be a very powerful tool for lowering your monthly student loan payments. By consolidating your loans into one large loan, you can oftentimes get a better interest rate, which results in a reduced monthly payment. It's important to remember though, that if you have both private and Federal loans, you shouldn't consolidate all of them into one loan. You can consolidate them separately, but if you consolidate the private loans with the Federal loans, you will lose the specific benefits that the Federal loans offer.

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