As of February 2006, there are new fixed interest rates of 6.8% on any student loans applied for after July 1, 2006. This means that there will no longer be origination fees.

If you are pursuing a graduate degree, there is a new program called PLUS Loan initiative that gives graduate students the opportunity to use PLUS finds. They cover the total cost of your graduate education with federally guaranteed, low-interest loans instead of other loans that are more costly.

If you are about to graduate, you might think about consolidating your student loans with a Federal Loan Consolidation Program. This loan will considerably lower your monthly payments by 50% or more.

Research shows that the average college graduate will pay around $220 per month on student loans. Interest rates are rising, so the time to consolidate is now. You may qualify for an all time low interest rate of 4.5%, or if you fail to consolidation your rates could jump up as high as 8.25%. You should permanently lock in an interest rate before July 1. That is when student loan rates change.

When your payments begin, find out if you can get a discount if payments are automatically deducted from your checking or savings account. A lot of lenders offer a reduced rate is they can automatically withdraw payments. Always pay on time. If you are having trouble finding a job, or other reasons prevent you from paying, let your loan officer know, and you may qualify for a deferred plan. Try working out a plan with your loan officer that works for you and your financial status.