You can’t ignore the topic – student loans are a fact of life. In this time and age, one of the largest points in everyone’s budget is student loans. Not everyone may end up with student loans though, but if you are in those shoes, you have to start understanding those details, terms, loans and know how to approach them.
At first, it all seems to be easy money when you are trying to get that degree or certificate. But when it comes to repaying the money, a lot comes to play. Seriously so much can switch from such easy money to becoming a painful expense.
Everyone can be pained by costs. But there is always a way to make lessen the burden of such costs. If you have graduated with student debts, you have to start knowing how to get around paying off your student loans.
Here are eight things you need to know about paying off your student loans.
1. Start Early
The earlier you start looking for ways to tackle your student loans, the easier and better it will be to approach them. If you can start saving for or paying off your loans when in college it becomes realistic that you would accomplish a lot before the loan reaches the end of the deferment period.
2. Using Auto-Pay
The auto-pay feature could give you a 0.25 % discount on your interest rate. Although it may not sound like much but imagine how such feature could reduce your total loan cost by as much as $1, 500 or even more! Rather than up your lifestyle when you get that raise focus on how money can be taken directly out of your paycheck and put in a separate account.
3. Loan forgiveness programs
Depending on the degree you earned and your field of study you can have a job that helps you with school loan forgiveness. Most times this applies to fields of public service, government, education, and medicine. Perhaps you need to do some research or look for what is available in your field, what you would find out could help you prevent yourself from amassing any more debt.
4. Make extra payments
Maybe you need to pay more and protect future payments. You may need to verify how your payments are being applied. When you make payments greater than your balance due, your lender could apply the extra money to fees and interest.
There are income-based repayment programs, which can help you make payments that will be suitable for your budget until you can make extra money. Try to contact your lender to see what plans could be appropriate for you.
5. Changing your consigner
It may have been necessary to have a consigner when you were taking a private student loan to reduce the lender’s risk. But what if the consigner passes away later? It is always important to find a way the consigner can be released from the loan to prevent serious financial consequences in the long run.
You may have heard of Zerobound, but this platform connects those with loans with organizations to volunteer for, sponsors and funds to help pay off student loans. There are other programs which have the same objectives such as the Peace Corps or AmeriCorps where you can volunteer and address your loan needs.
7. Finding a suitable payment plan
Have a plan that could be suitable for you. Sometimes after a grace period it is difficult for you to afford what student loan payment you have to make. You have to consider the interest costs of any repayment you are presented with. Perhaps it may be a better option for you to reduce the period you have to make a payment so that you avoid the long-term costs.
Even when you are burdened by your loans and aren’t able to pay them off quicker,
8. Not paying at all
It is important to pay your student loans. While something unexpected could happen or you still dealing with unfortunate situations, not paying your student loan bill could have serious consequences. Rather than shy away from paying your loans, contact your lender and try to work out a different payment plan so you can reach your target of paying your student loans.
The average graduate has more than $34, 000 in student loan debt. While college can be a tough four years, it can be a bigger challenge for a student after graduation when you have to pay back your student loans.
Rather than let the idea scare you, it is important to apply the solid strategies that are listed above for paying your student off as quickly as possible. Talk your lender, be informed about the student loans’ interest rates and the terms.
Life with student debt can be stressful, there is nothing cool about hundreds of dollars being thrown out the window. However you should look at the bright side, such debts can help you to learn to budget, live below your means and turn things around to build a solid credit history. Also look at the fact that you have an education now and there are great things ahead for you.