After you graduate and find a job, the unvarnished reality of repaying your student loans hits. Below are five steps that you can take to help in keeping the payments from causing you heartache.
1. The first rule is to stick to a payment plan. Put aside a certain quantity every month for your loan payment. Making a larger payment than needed every month can help you repay the loan earlier, so saving you a great deal of money on interest. If you believe you may forget, set it so that the payment is electronically transferred every month.
2. Though interest rates of student loans are low compared with credit cards and other loans, it remains a maddening fact to address. But there is hope, if you're making under $65,000 on your own or less than $130,000 if filing jointly you can take up to $2,500 of the yearly interest you are paying on your college loan.
3. If you are simply can't come up with your monthly payment, there are options. Since your income is only going to grow as you climb the company ladder, you can schedule graduated repayment plans with your bank. You commence with a low monthly payment that may steadily get bigger over the term of your loan.
4. If you are totally out of options, you may be able to briefly suspend your payments. If you be made redundant or go back to college for an advanced degree, you can request a deferment of your loan payments. If your request is granted and you have a Stafford loan, the government will really take care of the interest that accumulates during your deferment.
5. If you can not get a deferment, try forbearance. You can suspend payments for at least a year, though you may still be answerable for the built up interest.
1. The first rule is to stick to a payment plan. Put aside a certain quantity every month for your loan payment. Making a larger payment than needed every month can help you repay the loan earlier, so saving you a great deal of money on interest. If you believe you may forget, set it so that the payment is electronically transferred every month.
2. Though interest rates of student loans are low compared with credit cards and other loans, it remains a maddening fact to address. But there is hope, if you're making under $65,000 on your own or less than $130,000 if filing jointly you can take up to $2,500 of the yearly interest you are paying on your college loan.
3. If you are simply can't come up with your monthly payment, there are options. Since your income is only going to grow as you climb the company ladder, you can schedule graduated repayment plans with your bank. You commence with a low monthly payment that may steadily get bigger over the term of your loan.
4. If you are totally out of options, you may be able to briefly suspend your payments. If you be made redundant or go back to college for an advanced degree, you can request a deferment of your loan payments. If your request is granted and you have a Stafford loan, the government will really take care of the interest that accumulates during your deferment.
5. If you can not get a deferment, try forbearance. You can suspend payments for at least a year, though you may still be answerable for the built up interest.
About the Author:
Joe Wilson has worked in the loan industry for over two decades. Let him share with you his years of experience with payday loans, personal loans, auto loans, student loans and the new peer to peer loans.