Gov't loans do give you options on how you want to pay them back. I'm assuming those are Stafford Loans. They'll give you about 3 or 4 different payment options, like interest only for a few years, start out at interest only for a few yrs and build up, principal and interest, etc. You will have a choice to what your payment will be within reason.
I got out with about 20K in loans, had a minimum payment of about 210 a month for 10 yrs, principal and interest. I paid more than I had to and paid them off in about 6 yrs. I could have paid less and taken 15 yrs.
With rates as low as they are now, you'll be surprised as to how low of a payment they can give you. My advice is pick a payment plan that is the most aggressive that you feel you can comfortable live with over the long haul, then pay extra on it as often as you can. Don't get me wrong, getting a college degree is the best investment you'll ever make in your life (better return than any stock, real estate, etc), but that still don't make it fun to write that check every month for the pizza and beer you consumed in school 5 yrs ago when you're trying to save up money for a new house, new car, kids, and other grown up crap.
|