Paying back student loans

APPLETON - During a speech in North Carolina Tuesday, President Obama highlighted what he described as the skyrocketing cost of attending college.

Two-thirds of college seniors graduated with loans in 2010, and they carried an average of $25,250 in debt.  That's according to the national group "Project on Student Debt."   

We went to a local college to find out what students can do to make the number more manageable.

Lawrence University Senior Megan Hagar said she's looking forward to getting out into the "real world," but not to repaying her student loans.

"There is a streak of panic that runs through myself and my classmates," said Hagar.

Lawrence Financial Aid Director Sara Holman told us there is a lot students can do to quiet that panic.  The first is to start simply.

"Only borrow what you need," said Holman.

And make sure the loans you do need are from a reliable lender, with affordable interest rates.  Holman said learning to budget now is important.  So is saving, especially in the six months between graduation and when loan repayment kicks in.

"Start putting it aside, that way it builds a buffer for you," said Holman.

According to Holman,  there are options you can work out with your lender if the payments are too steep, like deferment.

In the meantime, she recommended asking for advice.  There could be some loan forgiveness programs you qualify for and not even know it.

"Don't run from it.  Go to those resources that are there to help you and can provide information about what opportunities, what options are available," said Holman.

And it's never too early to pay a visit to your school's financial aid office to ask about how you can pay those loans back.

 "Never!  It's never too early.  When that student first enrolls in college and borrows that first loan they should be thinking," said Holman.

Thinking about how to make the burden smaller, like Hagar did.

"I worked all four years and lowered my student loans," said Hagar.

A piece of advice Hagar leaves behind for the high school class of 2012.

 "I would recommend thinking ahead and paying attention to your financial situation," said Hagar.

Because before you know it, you'll be in the "real world."

The interest rate on new federal student loans for poorer and middle class students is set to double in July. However, both President Obama and Mitt Romney have said recently the lower rate should be extended.  Congress does not have a definitive plan to pay for an extension.