How should I handle my student loan repayment?

Out of sight, but not out of mind

When you first get that notification that you’ve been granted a student loan consolidation, it may feel as if a weight has been lifted from your shoulders. All of that paperwork and monthly payment guesswork has been taken off of your plate.

Now you can focus on making one reasonable payment with a fixed interest rate. You spent all of that time collecting student loan consolidation information and now you feel as if you’ve done the right thing. A nice feeling, indeed.

Once that initial euphoria wears off, you realize that even though the loan is a little more palatable, the responsibility is still yours to pay it off.

Don’t panic. The first thing you should do is create a budget outlining all of your expenses, including your loan payment. Now isn’t the time to celebrate your recent graduation with a brand new sports car.

The best thing you can do for yourself is to be frugal. But being frugal doesn’t mean to starve. It means eliminating the non-necessities. Eat home more often. Rent a movie instead of going to the theater. Stop buying expensive cups of coffee every morning. Okay, the coffee elimination might be a little extreme, but you get the picture. Just take it easy for a while, and spend wisely.

If you consolidate your student loans, watch your spending for a while and stick to a rough monthly budget, you’re well on your way to a better financial future.