How to Confidently Handle Your Student Loan Debt
Getting a college education is one of the most important decisions you can make for your future. Unfortunately, with a college education comes student loan payments, which can be confusing and intimidating for most students who borrow money. Navigating the student loan process is challenging enough, but without making the best financial choices, you’ll surely fall behind in your student loan payments. Fortunately, this article will help you so that you can confidently begin paying off your student loan debt.
Make additional payments to get ahead
To avoid falling behind, you’ll want to pursue every chance you can to get ahead. Getting ahead of your student loan payments means making as many payments as you can in a month. So, maybe you have some extra money lying around from your financial aid stipend. The tax season is approaching and you’re expecting your tax return to be deposited into your bank account in the near future. To succeed in paying off student loans, recent graduates should look to use lump-sum payments to get ahead. That way, you can enjoy a little extra time should you miss some payments later down the road.
Apply for loan forgiveness or deferment options
Fortunately, there are certain types of forgiveness programs that you can use to get student loan relief. If you were disabled, for example, and were no longer able to make your payments, you can talk with your loan servicer to get these loans discharged. Remember, loan forgiveness is different from loan discharge. Being employed by a government agency or not-for-profit is more lucrative than you think. You might be eligible for loan forgiveness. The U.S. Department of Education points to resources for graduates to explore student loan forgiveness options. Additionally, if you can’t afford to pay now, student loan deferment can help you avoid paying for now, increasing your chances of earning more income to confidently manage your student loan debt.
Consolidate multiple loans
Student loans will collect interest that will hurt you financially if you can’t keep up with payments. These interest charges worry about people paying back student loan debt as they closely resemble the problem with paying late fees. Paying interest in addition to the original balance can eventually catch up to you after a few months. That’s why it’s a good idea to consolidate multiple loans into one. The benefit of consolidating your loans is now you’ll only have to worry about a single monthly payment rather than keeping up with multiple lenders. The convenience of consolidation is an option many recent graduates should explore. Choose from the U.S. News & World Report’s list of best student loan consolidation and refinance lenders. To pay your loans off effectively, you’ll have to choose an organization that can promise you the lowest interest rates.
As long as you have the right mindset, paying off student loan debt is a real possibility. Many student loan borrowers will feel frustration and confusion about how much to pay back, how often, and when. But if you can consolidate the budget, apply for loan forgiveness or deferment, or start a side hustle, you’ll be in a better position. The best expert wants you to succeed; that is, David Geithner of On Location experiences.
