As finals are approaching at Grand Valley State University, many students are crunching time and numbers to prepare for the future. Those who are graduating face a harsh reality: paying back student loans.

Luis Lozano, assistant director in student employment and financial literacy, said the national student loan debt has hit about 1.3 trillion dollars.

With high loan payments awaiting, Lozano said eliminating student debt early or while still in school is a smart financial decision.

“Paying off your loans earlier will mean that you will pay less interest,” he said, “and will allow you to have more income to meet your financial goals. We always encourage students to try to make interest payments on their loans every quarter to help say money.”

Despite the high cost, Lozano said borrowing money to finance education is a positive debt decision that can be managed. However, he said the average amount of loans awarded to a dependent student is $31,000, which equates to about a monthly payment $318 for 10 years.

For students interested in paying back loans right away, Lozano said it is important to remember that unsubsidized loans accumulate interest during that time. No payment is required, but the amount continues to grow.

“With the common unsubsidized loans no payment is required,” Lozano said. “How much they owe is getting bigger each month. Students can start paying back their student loans at any time.”

The financial aid office encourages that students visit www.nslds.ed.gov, to view how much they have borrowed to date. The National Student Loan Data System (NSLDS) is the central database for student loans through the Department of Education.

Lozano said students can use NSLDS to start planning their payments and discover who their assigned loan servicer is for the future payments. This accounts for all loans acquired to date, as how much a student accepts in loans offered is a personal decision.

Before graduating, Lozano said exit counseling must occur when a person is no longer enrolled at GVSU as a student. He said exit counseling is where students receive important information to prepare to repay their federal student loans.

“Students have the option to meet one-on-one with a staff member or with a peer mentor of the MoneySmart Lakers Team,” Lozano said. “During the personalized exit counseling appointments, students are provided with a road map of their student loan balance, loan servicer and repayment options.”

MoneySmart Lakers is a mentor program on campus designed to provide the tools and resources for students to develop or define their money management skills. The office is located at 100 Student Services with hours of 8 a.m. to 5 p.m. from Monday through Friday.

For financial information visit, www.gvsu.edu/moneysmart.