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The amount of interest that can accrue on student loans is often overlooked. Graduating from college and realizing that you owe $5,000 more than when you started can be shocking. One way to avoid getting hit with that number all at once is to start making payments early on the interest that accrues while you're still in school.
Very few people do this. Most people figure they don't need to start making payments until they finish school. But if you start student loan repayment early, you can start paying off the interest before it starts to accumulate. The longer you wait to make payments, the longer it takes to pay off the loan, which means more time for interest to build up.
|Jennifer Mathes, Ph.D.|