Regardless of whether you are repaying student loan, taking a quick break from college or a recent graduate, there are few tips that will bring your debt under control. In simpler terms, certain tips will prevent additional interests, college fees and bad credit scores. Moreover, if you are unable to find a job or manage your monthly payments, you will find the points (tips) discussed in this article useful.
Tip #1 – Be Aware
Initially, you must be aware of your loan. Always keep track of the loan’s repayment policies, lender details and balance status. These details will give you a comprehensive insight into your loan forgiveness and loan repayment chances. In case you are not aware of your loan’s most important features, you should visit www.nslds.ed.gov or contact your lender.
Tip #2 – Grace Period
During student loan payments, you must be aware of the grace period. The grace period would differ from one loan to another. By default, the grace period will be equivalent to your program’s duration. Nevertheless, you can make your first payment when you receive a significant income. The grace period of Federal Stafford Loans is 6 months and for Federal Perkins Loan is 9 months. And the Federal PLUS Loans have a variable grace period.
Tip #3 – Stay in Touch
Before and after monthly loan payments, you must stay in close touch with your financial institution. If you change your contact number or move between homes, you must notify your lender as soon as possible. Never steer away from your lender at any cost. Ignoring your lender will result in serious consequences.
Tip #4 – Choose your Options
When you are a repaying a student loan, you should hand pick the right kind of repayment option. Common mortgages like the Federal Student loan have a standard 10-year reimbursement scheme. If you are not able to abide to this plan, you must hunt for other options. For instance, you can ask for loan forgiveness after 120 qualifying monthly repayments.
Tip #5 – Stay Calm
If you are unable to make regular student loan payments, don’t panic. Instead sit down and relax. There are several ways by which you can make a loan payment. All lenders have special schemes for people who are unemployed, have health problems or are financially unable to make a payment. Talk to your lender and find the best solution for the problem. To stay out of critical issues like bankruptcy, you should pay loans without any gaps. A loan that is paid correctly will boost your credit history and reduce the risks of a bad credit score.
Tip #6 – Work Hard
Moving on, you must strive hard and reduce your principal as much as possible. When a federal student loan payment is made, its interest and late fees would be covered. The principal will be reimbursed towards the end! If you find the monthly repayments high, you should request for a reduced principal. A written request must be given to the lender and all future payments should be adjusted accordingly.
Tip #7 – Don’t wait for Miracles
Student loan payments must not be neglected. Always remember that loans will not be paid magically! Just because you avoid them, the loan will not disappear or make you debt free.