Handling student loan debt can be a major headache! Whether it’s trying to figure out a repayment plan or having to defer payments until your blessed with a steady income, student loans are a hassle to handle when you have no idea where to start. Student loan debt doesn’t have to mean the end of your financial freedom.
There are certain things you can do to make handling student loans an easier process for you. The CGS Team is sharing a few tips to help you get a handle on your student loans and deal with them the best way you can.
Just Starting With Student Loans?
The average student graduating from college will have at least $40,000 of student loans built up. Still in college or recently graduated? Check out 5 Things College Grads Need to Know About Finance. Whatever your student loan debt value is, don’t let it intimidate or discourage you.
Before you get in over your head with priorities and life lessons, practice managing your money so you can take on a larger payment. Another important rule every student should keep in mind is knowing what type of loans they have and the process of deferring them.
Use Your Grace Period Wisely
Usually, every graduate receives a grace period before the loan payments become due. This grace period is designed to help you get adjusted to life after financial aid. During this grace period you will not be charged interest depending on the loan type you have. Use your grace period to fully understand the type of loan you have.
Private or Federal? Grace Periods or No? Deferment or repayment plan options? Interest Rates? These are all important questions that should be addressed with your student loans.
Grace periods take place on two occasions: you graduate, or stop going to school altogether. Before your grace period ends, set up a game plan. What’s your loan payment? Can you afford to make a little more than what your payment is?
If so, you could save yourself extra money in interest and have your loans paid off faster. If possible, focus on the loans with the highest interest rates first, since these are costing you the most.
Learn About Payment Plans
While getting familiar with your loan, take advantage of your payment options. Do what’s best according to your financial situation and income. Payment plans are typically based off your income earnings. It’s important to also look into loan forgiveness plans that assist you in paying the loan back.
If you work in certain fields, you may be able to have your loans forgiven after a specific amount of time. Look into your loan forgiveness program and payment options. Make sure you fully understand the requirements and stipulations. One late payment could result in your loans not being forgiven.
Education is important and even though you took out a few loans, that doesn’t mean your degree wasn’t worth it. There are a variety of routes that are tailored for everyone’s situation. What advice can you give someone currently paying back student loan debt? Are you in the process of paying off your loans? Leave a comment below to get the discussion going on this important topic!