Strategies For Managing Student Loan Debt
Student debts can be very confusing and overwhelming. Below, we advise you on how to lower your payments or get rid of your debt altogether. While some of these services are free; others, such as credit counselors and legal advice, generally cost money. Personalized help may be worth paying for if your situation is complex.
- Know Your Debt
Stay in touch with your creditors and always be aware of what you owe. You can make a list of what and who you owe on your student loan debt. Keep track of your lender(s), the balance you owe and your repayment statis (current balance, due dates, end dates, interest, etc.).
- Review Your Repayment Options
A 10-year repayment plan is typical with student loan debt, but if that isn’t going to work for you there are other options out there. You can extend your student loan debt payment plan out beyond the 10-year marker, but an even longer plan will increase the interest on the life of the loan even though the monthly payments are lower. An Income-Based Repayment Program maybe something to consider.
- What is Your Grace Period?
Every student loan has a grace period, which is the timeframe allowed by the lender between the time you finish school and the time your first payment is due.
- Update Your Records
Stay on top of your end of the bargain by updating your lenders if you move, change your contacts, or have a change in your financial situation such as job loss. Make sure you allow your lenders to do the same with you.
- Ask For Help
If you cannot keep up with your student loan debt, get help! Don’t default.