Managing Student Loans Once You Graduate RESTON, Va., April 14 /PRNewswire/ -- With cap and gown in tow, thousands of college students will soon make their way to graduation ceremonies this spring, thereby officially marking their entry into the "real world." For many, this also means it's time to begin repaying student loans. (Logo: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a ) Unlike most consumer purchases, a college education appreciates in value, paying dividends that last a lifetime. Taking out a student loan to finance higher education is one of the most sound and worthwhile investments an individual can make. But like all investments, managing loan repayment can sometimes be overwhelming. "For many, this is a first borrowing experience. Make it a positive one," says Martha Holler, Sallie Mae spokesperson. "CollegeAnswer.com offers numerous resources like repayment calculators and budgeting worksheets to ease the transition after graduation." The first step to ensuring a borrower's repayment experience is a positive one is learning how to best manage his or her education loans. That means selecting a repayment plan that suits a borrower's individual financial situation. Repayment options vary from lender to lender, but typically plans include: * Standard repayment in which principal and interest payments are due each month throughout the loan repayment term. * Graduated repayment in which payments are lower at the beginning of repayment and step up at specified periods and in specified amounts over the term of the loan. * Income-sensitive repayment in which monthly payments are based on a percentage of the borrower's monthly gross income. * Extended repayment in which eligible borrowers get payment relief through a lengthened repayment term of up to 25 years. * Consolidation in which borrowers refinance one or more federal education loans, thereby reducing their monthly payment by extending the payback period. The second step is good communication. Staying in touch with your student loan provider means that you will receive critical information about your loan. This can be as simple as repayment coupons, but it can also include other information, such as interest rate discounts or tax deductibility of interest. In any event, borrowers should contact their lender if they are having trouble making payments. Many do not realize they can easily qualify for a deferment or forbearance, which means they do not have to make payments for a short period of time. "Being an informed borrower means you can save money, start a good credit history and make the next chapter in life a rewarding one," says Holler. http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a http://photoarchive.ap.org/ DATASOURCE: Sallie Mae CONTACT: Erin Korsvall of Sallie Mae, +1-703-984-5136 Web site: http://www.salliemae.com/ http://www.collegeanswer.com/ Company News On-Call: http://www.prnewswire.com/comp/827187.html

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