One thing to add to this is to look to refinance school loans by a lender that rewards timely payments. Our school loans were 6%, and we found a lender in 2003 that would refinance at 3.25%. After 48 months of on-time payments, they dropped the rate to 2.25%. This is basically lower than inflation, meaning, we have a free loan. It’s been 13 years now, and after career advances, the payment is very low in relation. So keep tabs on the going APR for school loan consolidation and refinance when you get a chance.
When it comes to student loan debt, recent grads should avoid these five mistakes, says Andrew Josuweit.