Did you know that approximately 70% of college graduates leave with student loan debt? Depending on your type and cost of schooling, loans could range anywhere from several thousand dollars up to over $40,000. While student loan repayment can seem daunting at first, there are resources and tips that will make this process simpler; read up on them quickly here!
1) Know Your Repayment Plan Options
As soon as you start repaying your student loans, the unexpected costs may become apparent: monthly payments could be higher than you anticipated. If you opt for subsidized loans instead of unsubsidized ones, however, your monthly payments could likely be less as the latter requires you to bear interest costs over time; alternative repayment plans might help keep costs under control better – for more information click here.
2) Apply For An Interest-free Extension
Apply for a federal extension on your student loans that would enable you to extend payments for several additional months depending on the circumstances surrounding them, such as financial hardship, unemployment or enrollment in an accredited educational program. Deferments can be requested online or by contacting your loan servicer; just remember that interest will continue accruing and will ultimately be capitalized (added back onto principal balance at its conclusion); unsubsidized loans accrue interest immediately onto principal balance.
3) Consolidate And Refinance
If you have federal student loans, consolidating and reducing their interest rate through a Direct Consolidation Loan may be possible. Refinancing them through private lenders could also help to reduce monthly payments while refinancing with lower rates – just make sure that before applying for anything new! Remember to run a credit report check!
4) Make Payments You Can Afford
Many students take on full or second jobs to repay student loans, which can be both challenging and taxing. Here are a few strategies for making payments more manageable: – Make payments as soon as you receive the first notice of payment. If necessary, get help from family, friends or financial aid offices to manage payments effectively.
You can also refer to 3 Great Reasons Why You Should Get A Personal Loan
5) Get A Job, Fast !
Now! For federal loans, working at least 10 hours each week in public service jobs such as military service or public health may qualify you for partial loan discharge. Likewise, disabled individuals may also qualify. To find out more information on these programs and your options please call or visit your loan servicer’s website.
Conclusion
Student loans can be an incredible financial strain, but they don’t need to be an ongoing source of stress and anxiety. By following the advice in this article and making regular payments as quickly as possible – don’t forget to keep track of them or reach out if any issues arise – student loan debt doesn’t have to become an ongoing source of worry!