Making the monthly payment on your student loan may be a budget buster, but don't blow it off and go into default. It will stalk you for years, negatively affecting anything you need an acceptable credit rating for, including background checks for apartment rentals and possibly that "good" job.

Instead, consider refinancing. This year the interest rate on loans to students dropped more than 2 percent, to 5.99 percent and to 6.79 for parents borrowing for a child's education, according to the U.S. Department of Education. The new rates apply to loans secured after July 1, 1998, but you can take advantage of the lower rates by refinancing loans you obtained before that date. If you took out more than one loan during your student years, you can consolidate them, combining different types of federal educational loans into a single one at a lower interest rate, with one payment each month. This will extend the time to repay the loan, but it will reduce your monthly payments and make your debt more manageable.

For consolidation loans and information, contact the Collegiate Funding Services (cfsloans.com or [888] 423-7562); Sallie Mae (salliemae.com or [888] 272-5543); and the federal government's William D. Ford Federal Direct Loan Consolidation Program (loanconsolidation.ed.gov or [800] 557-7392).

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