We recently received a good question from someone who's in the midst of his student loan repayment and is wondering about his options. Since many of you might be in a similar situation, I thought I'd post the answer here.

Here's his question:

I received my degree in 1995 and have worked as a chemical dependency counselor since then. My wife is a psychologist and makes a lot more money than I. The comment I have is that I have forty thousand dollars in student loans at 7.75% interest. I try not to think about it much, but it's hard to see that $417 a month go on and o into eternity. My understanding is that the legislature is considering reducing interest rates, but I don't qualify for that. Is there anything I can do with this or am I stuck for the next 20 years?

First, let me point out that he's right about the proposed student loan legislation —it wouldn't make a difference in his situation. If it passes, it will only affect new subsidized Federal Stafford Loans.

Now, without knowing all the facts about his situation and what types of loans he has, I can't advise the best course of action. However, here are a couple of options to consider for anyone who's in the midst of repayment and feeling frustrated:

1. Pay more down each month. I know, I know—this isn't always easy, but paying off your loan faster can save you money in the long run. In the example above, he's already paying a significant amount each month, but if he upped his monthly payment by $35, at the end of the year, he would have made an extra month's payment. The interest savings will add up over the years that you have left to repay your loan. And you'll see the light at the end of the tunnel a little sooner. Worth a try, maybe?
   
   
2. Try to lower your interest rate. If you have not already consolidated your loans, visit with your lender to see if loan consolidation  is a good option for you. It may help you lock in a lower interest rate. Be aware, however, that consolidation could also extend your repayment period. If you do consolidate, you could continue to make the same monthly payments that you're making now to avoid paying more over the life of your loan.
   
   
3. Take full advantage of any lender rewards. Many lenders offer rewards (such as reduced interest rates) for responsible repayment or for making payments automatically from your bank account. Check with your lender to see what they offer. These reductions may seem small, but they can definitely add up over time, and every little bit helps.

For everyone who's in repayment and wondering if they could be doing something more to help the cause, I encourage you to talk with your lender. They know the specifics of your loans and can be of more help.

Have you found a way to make student loan repayment a little easier to take?