Consoldating student loans
Like her, many consider consolidating their loans as a way to lower their monthly payments and simplify their finances.
The theory is that, either by stretching out repayment of the loans or refinancing them at lower interest rates, the borrower can reduce monthly payments.
"All I had to do was sign on to the Sallie Mae Web site, check off a few boxes and wait for the money to be disbursed," she says.
"The thought of repaying it never really hits you until graduation is near." If only the task of repaying student loans was as easy as taking them out.
Unfortunately, it's not a strategy that works for everyone.
One problem for people like Emily is that federal loans cannot be consolidated with private ones.
If you don't understand something, ask the lender until you get a straight answer.
After all, you're entering into a contract that can last as long as 30 years.
An increase in salary would mean an increase in the monthly payment.
If the full amount borrowed is still not paid off after 25 years of these payments, the remaining balance is forgiven.