Lock In Best Rates Early. The U.S. government regulates education thus giving borrowers more flexability and fewer penalties than other debt. While it's still vital to pay the minimum on time, it can be financially beneficial to pay off student loans over many years--or even decades.

A key decision is whether -- and when -- to consolidate. Consolidation can help you extend your loans beyond the standard 10 years, reducing your monthly payments and often lowering rates. There are no prepayment penalties. Most people can consolidate only once and often it is best to do it within six months after graduation, since that is when you qualify for lower, "in school" rates.

Student loan rates get reset every July 1 and stay constant for an entire year. Different loan types have different rates. The Stafford federal-loan rate now is 3.42% (the in-school rate's 2.82% ).

A new rate will be announced after the federal Treasury bill auction in late May, so you have time to decide whether to lock in this year's rates or wait until after July 1. When you consolidate, your new rate from federally approved lenders such as Sallie Mae reflects a weighted average of the consolidated loans. Some lenders give extra incentives such as slightly lower rates for people who consecutively pay on time or pay by direct withdrawals from a bank account, so shop around.

A big perk for student loans: They come with several options for delaying payments if you can't afford them. Many young adults don't know their options, however, and wait until it is too late, says Mark Gazda, president of Answer Company, a Massachusetts student lender.

A student loan, for instance can be automatically deferred for up to six months after graduation-- longer if you're jobless, in the military or a very low earner. Deferment is a grace period you have to put off paying the loan, sometimes interest-free. If it's too late to defer and you're strapped, consider forbearance. A student loan can be in forbearance for up to three years, for a maximum of one year at a stretch, Mr. Gazda says. While technically you must be financially pressed or in bad health to get forbearance, most lenders will do it if you ask. You should ask before you risk default, he says. (A student loan defaults once it is 270 days late.) "The lender often doesn't tell you about these things unless you ask," he says.

To get the best rate get quotes from the following sources and compare the rates:

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