WHAT'S THE BEST WAY TO PAY OFF COLLEGE COSTS?
Now that you are planning to leave college, your financial plan will likely shift. The repayment of your student loan may be an important part of that plan. No matter what your long-term plans are, we can help with your post-college finances
Repaying Your Loan
Look at your interest rate and the number of payments you'll have to make for the life of the loan. Find out if you can make payments toward the principal in addition to the minimum monthly payment, since the first few years of any loan are primarily interest payments.
Deferment
You may need to defer your payments while you get established in your career. Six to nine months should allow you to create a new budget and include your loan repayment. If you happen to get on your feet sooner than expected, then you may want to start paying early.
Postpone Repayment
Federal Consolidation Loan
If you are making monthly payments on federal education loans, a Federal Consolidation Loan from Wachovia can make repayment easier. Federal Consolidation Loans combine your existing federal loans in a new single loan with a lower payment and an extended repayment period.
More information on Federal Consolidation Loans from Wachovia Education Finance
Tax Benefits
With the HOPE and Lifetime Learning Tax Credits, many students and parents can deduct some of their loan and education expenses from their taxes. With the HOPE Credit you can claim up to $1,500 for each qualifying family member who is attending an eligible school. With the Lifetime Learning Credit you can claim a maximum of $2,000. Check to see if you qualify for these benefits. Also, find out if the interest on your loan is a tax-deductible item. Consult your tax or Financial Advisor for full details.
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