University is a time for young people to develop a sense of freedom, explore interest and start pursuing their dream careers. But nowadays, due to the rising cost of education and student housing, many students think that taking out a student loan is the only way out.
Did you know six out of ten college students take out student loans to pay for their education and student living, graduating with an average credit of more than $38,000?
So if even you are worried about HOW AM I GOING TO MANAGE THIS STUDENT LOAN? Do not Panic!. Here are a few tips that could help you in managing your student loan repayment.
GET YOUR LOANS ORGANISED:
First thing first, to deal with the debt situation, you need to understand how much you owe overall. Between numerous loans, from both private and federally, student housing, graduate and undergraduate loans, you might forget about how you owe to whom...not to mention the various monthly deadlines. So buckle up and do the math- Only by knowing your total debt can you develop a repayment plan.
TAKE ADVANTAGE OF YOUR GRACE PERIOD:
After you graduate, depending on the loan type, your lender may provide you with a grace period. If you have federal student loans, you plausibly have six to eight months before you have to start making the repayments, while if you have a private loan, the grace period might differ according to the lender.
A grace period gives you time to get a job after your graduation and get yourself financially prepared before you start the repayment process. Avoid the tempting option of simply neglecting your debt during this period and work towards fully understanding your loans and develop a game plan.
FIND a JOB that offers LOAN forgiveness:
Student loan forgiveness jobs can come from the state government, federal government or private organisation. Federal loan forgiveness programs are generally available to professionals who work in public sector organisations or high-need areas.
Although the pay might not be great, but if you meet all the job requirements and complete the full term of the work, your student loans might be forgiven fully or partially.
FAMILIARISE YOURSELF WITH LOAN DETAILS:
If you’re dealing with more than one loan at a time, which is often the case, then try handling the loan with the highest interest rate first. Apart from the interest rate of each loan, also know what the minimum payment will be and which loans could qualify for deferment and loan forgiveness.
EARN EXTRA MONEY WORKING EXTRA JOBS:
With the constant rise in the student loan debt, it’s no surprise millennials are searching for a sidekicks more than the previous generation. Side gigs come in every shape and sizes. You could offer a service online, such as editing, design or content writing or sell your clothes on Vinted.
So not only will your extra income give you more economic freedom and help you pay off your student loan faster, but you might also learn some new skills, gain hands-on experience (and have fun) in the process.
Pro Tip: Try to find a job close to your
student accommodation. It will not only help you to cut short your commuting time but will also help you to save some extra bucks.
STICK TO A BUDGET:
Once you know how much you owe towards the loan, create a strict monthly budget and stick to it. When you’re planning your budget, try to trim down your additional expenses as much as possible and invest that extra money toward your student loan repayment.
Now that you have an insight on what to do and how to manage your student loan- Plan accordingly and start your repayment process as soon as possible.