Paying Back Your Student Loans in This Economy

Let's face it. The economy is taking a massive nose dive, and while you're worrying if you'll get a job at all after graduation, another impending obligation is standing out in your mind: your school loans. How are you going to pay them?

If you were lucky enough to get a Pell Grant, a scholarship or the Montgomery GI Bill, then you have nothing to fear. If you had to take out a student loan like everyone else, then you have a lot more to worry about.

Fortunately, you're allowed a six month grace period before you even have to start paying back on your loan, but $700 per month payment is a big chunk of change to be doling out of your pocket. That's practically the cost of rent. Rent! Another thing you have to worry about if you aren't already dealing with it now.

If you do have a job, or even lucky enough to have two, then it's a no-brainer that you're going to hold onto it as long as you can, but when the school payments start coming in, remember that a very large amount of your disposable income is going to go away.

And if you're an undergrad just starting out, you should pay particular attention. Your starting pay is likely to be quite low, and you have other expenses such as rent, utilities, cell phone bill and car to keep you more than occupied.

Now is the best time to consider consolidating your student loans, especially since the interest rates are at an all-time low.

The process is relatively simple; however, it's not just a matter of combining any old loans together. Plus, there is a minimum debt you must have in order to be eligible for student loan consolidation. Congress has also made some changes that can affect your options of paying back your loan.