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10 Great Tips on How to Repay your Student Loans Quickly

Going to a college or university undeniably is a good investment. Millions of students today take federal or private student loans in order to finance their education. According to some reports, the average amount of debt a student holds upon graduation is about $20,000.

I’ve Just Graduated! What Now?

You have just graduated. You are excited and proud of yourself holding your degree in one hand. And you are worried and anxious holding your debt in another. You are starting your new life with a student loan of approximately $15,000-$20,000 and wondering how to get rid of it in the shortest period of time.

Here are some useful tips on how to repay your student loans quickly. First, let’s list a few things you should pay attention to before taking your student loan.

1. Think about the Amount of Your Loan

The golden rule is: the less money you have to borrow, the better. Try to minimize the amount you are borrowing. Keep in mind that your monthly payments shouldn’t go over 10% of your anticipated monthly income without deductions such as tax or regular expenses once you graduate. This will allow you not to hording in debts. Moreover, it will be of assistance to repay your student loans quickly.

2. Be Familiar With Your Rights and Responsibilities

Be aware that you are responsible for repaying your student loans on time even if you don’t complete your education or fail to find employment. Complete entrance counseling prior to receiving the first disbursement and exit counseling before leaving school. It answers many essential questions about student loans and explains what will happen when you fail to make payments. It can give you helpful suggestion on how to manage your student loan payments. Student loans will not be excused in a bankruptcy proceeding, so it is vital that you put effort on paying them off as quickly as possible. Be informed about your rights as a borrower.

3. Don’t Wait Until You Graduate

Start paying off your student loans while still in college, even in case this requests you to find a part-time job, because this will save much money in interest. Keep in mind that as soon you start making money, the soon you will repay your student loans and start to make your capital.

4. Develop a Plan

Build up a plan to repay your student loans within certain amount of time. Don’t set them up paying off in next 20 years. In case you have some smaller debts like credit cards, clean them all up before taking your large student loans, which will allow you to focus on your loan repayment and will save you money.

5. Control Your Career

Be sure you choose a college that can place you in job after graduation. Carefully choose your mayor and pay attention to jobs available in the labor market, companies hiring and salaries offered. Keep learning and upgrading your skills to make yourself a valuable employee. This will increase your salary and consequently, help you repay your loans quickly.

6. Check for Available Repayment Options

Before entering your student loans, you should take into consideration all repayment options accessible, since they offer different conditions of paying off. For example, Biweekly Repayment Plan allows you to pay half of your monthly payments every two weeks instead one large payment. This will reduce the time needed repay your loans. With private student loan lenders you can negotiate favorable repayment conditions and choose from different repayment options according to your finances.

7. Don’t Change Your Lifestyle After Graduating

Once you have graduated, you don’t have to change your habits. Keep living like a student, stay in your affordable apartment, and use public transport. In that way you won’t increase your cost of living. Instead, use your newly earned income to pay down the loan principal and prevent it increasing with compounding interest, since your loan is not going to start accumulating interest during the grace period.

8. Arrange Your First Job Offer

Once you have your degree, use it as soon as possible. When you settle your first job offer negotiate your salary.  You will have six months grace period after graduation (or more under PLUS loan and private student loan plans) which is intended to allow you time to find your first job before you have to make payments. As soon you start to work, soon you will start paying off your loans. However, you should contact your student loan company to ensure that you are in the grace period, since you maybe wouldn’t be automatically put into grace period.

9. Keep in Touch with Your Lender

Update every change of your address, telephone number and any other change of your personal data that may occur. Don’t ignore bills and problems related to your debt.  Failing to do that can end up costing you a bunch of money.  Open and read every paper mailed from your student loan lender or you might miss out on a important deadline or vital information you need to act on concerning your student loans. If there is information you do not understand or if you have any concerns, ask for help. Remember, it is essential to ask if things doesn’t seem clear to you to avoid any troubles with your student loans repayment.

10. Don’t Panic

If you are having difficulty making your payments because of some unexpected financial issues, unemployment or health problems, remember that diverse student loan plans offer different repayment options like deferments and forbearance, which can help to avoid delayed fees and other penalties. If you use these options, you can also prevent a negative mark showing up on your credit report. If you have any difficulty making your student loan payments contact your student loan company to give you assistance in this matter.

Different federal and private student loan plans give assistance to millions of students in order to gain their academic education. This leads to better employment opportunities, which is worth every dollar invested.  If you had to take out student loans to support your education, there is no reason why the loans should not be managed appropriately. Just be sure to be economical and find out the very best way to cope with your student loans while still in college.

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