Managing student loan – Get rid of debt burden and secure your future
Over loaded with student loan debt? Are you finding it difficult to pay off your student loan? With little effort and proper planning, you can pay off your student loan fast. It is seen that nearly 40 percent of college students will require at least 10 years to repay their student loans. Since the cost of education is increasing, the amount of student loan is also increasing. There are some steps you can take before and after graduation to reduce the student loan amount and secure your financial future. Read on to know about some of these steps.
Apply for federal loan – When you decide to take out a student loan, make sure you apply for federal loans to pay the tuition fees before searching for private loans. You need to know that federal loans have less interest rate than the private ones. Their repayment plans will help you save money because some loans do not mount up interest while you’re in school. Make it a point to read through the clauses very carefully because private loan lenders can be difficult to work with at times and may have hidden rules that force you to pay more fees in the long run.
Find out the amount you owe – While eliminating your student loan, you need to find out the exact amount you owe on each loan and how much you’ll have to pay for them every month. It’s advisable that you make the loan payments on time and avoid missing out any payment. Once you free yourself from student loan debt burden, you will be able to lead a stress free life.
Use income based repayment plan – Another way to pay down your student loan is to make use of income based repayment plan. This will restrict the payment amount to a certain percentage of your flexible income every month. This, in turn, will enable you to stay current on your payments. You will be able to save some money for your future.
Request for postponing the loan payment – If you find lowering the rate of interest and other repayment options not suitable for your case, you may request your lender to postpone the payments for the time-being. Explain him that you’re facing financial crisis due to which you can’t make the payments right now. Also, give him the assurance that you’ll surely pay down the loan once your personal finance gets improved.
Cut some unnecessary expense from budget – You may have the habit of spending your hard-earned bucks lavishly. If you do so, you should make it a point to cut down the unnecessary expenses from your budget until you get rid of your student loan debt. Spend money wisely only on the things that you’ll need the most and put every penny you can to repay your student loan.
With the rise in the education costs, almost all families are facing difficulties to afford their children’s higher studies. Student loans make it all possible for such parents to arrange for money and let their child build a bright career.