Video: Paying Back Student Loans

STARKVILLE, Miss. (WCBI)-Going off to college can be fun and exciting, however paying back those student loans is not.

According to a survey on www.studentloanhero.com there are over 43 million Americans with student loan debt.

For some college students, paying back student loans can be a burden.

“Umm, actually I do not know how to,” said Angelica Mattox, who’s a senior at MSU.

But Mattox isn’t alone.

“I think most of our parents have helped us through mostly getting our student loans and going to college so we personally haven’t had to deal with financial circumstances,” she said.

MSU’s financial literacy coordinator, John Daniels, said a lot of students come into his office, clueless on how to pay back their loans.

“I meet with a lot of students and some are very apprehensive about how much exactly do I owe, and where do I send my money and will I be able to afford my student loan payments,” said Daniels.

Daniels believes miscommunication is a big reason for a lot of students not knowing what to do next.

“Often times, because students move around and their contact information changes, we find that people will not receive the information that’s being communicated with them about where and when to send their payments, some students are not aware,” said Daniels.

However, Daniels said the repayment process is actually quite simple.

“You can go to studentloans.gov, or you can call 1-800-4-Fed-Aid and get the details,” he said.

From there, the loan service providers will give a list of all the possible options students can pick from to repay their loans.

“They have a high debt to income ratio,” said Daniels. “They can look at other repayment options that they calculate what you owe, and also what you make for a living, so sometimes that can be a way to reduce the amount you owe.”

And there’s also a deferment option.

“Say you end your six month grace period, and you don’t have a job to pay back your loans,” said Daniels. “They call your loan services, they’ll set you up for a deferment. They’ll temporarily put your repayment on pause so you can extend the grace period that you have.”
MSU has lanced a new website www.bulldogbudgets.msstate.edu.

The website gives students tips to educate them on how the repayment method works.