It pays to pay the interest on your student loans

I worked like a slave through college. I worked about 30 hours per week along with my full-time course load.

I wasn’t in any debt. Besides the line of credit from Lake Trust Credit Union formally named Detroit Edison Credit Union for $1,500. I applied for the loan to pay for a study abroad trip to Quebec right before my freshman year.

I applied for the loan to pay for a study abroad trip to Quebec right before my freshman year.

I made sure my FASFA was filled out. Signed, sealed and delivered. But I did not look twice at the federal student loans I committed to.

But I did not look twice at the federal student loans I committed to. College is over, and I am left with $32,000 in student loans.

Interest, interest, interest.

I could have lowered my principal payments by making interest-only payments when I was working in college. And these payments are tax deductible.

So you get a tax break and lower your debt. Sounds like a win-win.

Sorting through all these terms and various borrowers can be difficult. Educating yourself is key. College may not be for everyone, but if you decided to go, be aware.

This article outlined three important points about student loans: 3 Benefits of Making Interest-Only Student Loan Payments. It even breaks down the savings from interest-only payments.

Developing good habits is my favorite of the three.

No one wants those (888) numbers calling nonstop because of delinquent loan payments. And they are relentless.

Try not to fall behind. The entirety of the could appear on your credit report.

Stay on top of your payments. If you can’t make them, make arrangements. The worst thing that can happen is those thousands of dollars in loans becoming delinquent.

Pay attention to your financial aid package and whom you are borrowing from.

I’m working vigorously to increase my credit standing. My student loans are a large part of this journey.

Pennies count,

The Dollar Dad

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