If you’re about to graduate, or if you’ve recently graduated, chances are that you’ve got some kind of student loans. Learning how to manage these college loans so they don’t negatively affect your life is an important part of your post-graduate future. While paying them off as soon as possible is the ideal way to deal with student loans, that’s not an option for most people. The next best thing is to learn how to manage your student loans in a financially positive way. Below, a few tips for handling your student loans after you graduate.
Set Up A Payment Plan
It’s a good idea to set up a payment plan for your college loans so you’ll know exactly how much you’ll owe each month. Most lenders, including the federal government, have a variety of payment options available, including payment plans that are based on the amount of income you’re earning. These are particularly good if you think you’ll be making a low salary early in your career before earning more later. Other payment plans include monthly payments that stay the same every month until the loan is paid in full.
It’s a good idea at this point to make a general budget of how much money you’ll be earning every month, as well as all your expenses such as rent, food, car payments, and any other miscellaneous items. This is a good strategy for your overall financial well-being, and also helps you come up with a realistic amount that you’ll be able to pay towards your loans every month.
Student Loan Consolidation
It can be a good idea to consolidate your student loans, particularly when interest rates are low. This locks in the interest rate until the loan is paid in full, and could save you thousands of dollars over time, depending on the amount of your loan.
Automate
Many lenders, including the federal government, offer minor interest rate deductions if you agree to have your payments automatically debited each month from your checking account. This also saves you the hassle of having to worry about remembering to mail in your payment or go online to make a payment every month.
Contact Your Lender if Financial Difficulties Arise
If, some day down the road, you happen to lose your job, or can’t make your payments for some other reason, contact your lender immediately. Most lenders have options for deferring your loan payments in the event of financial hardship, and while it’s something that should be done thoughtfully and with care, it can be a real lifesaver when absolutely necessary. Allowing your lender to know immediately when you’re having financial problems can help keep your credit score from taking a hit, as well as keep lenders from garnishing your wages or, in the case of the federal government, withholding your income tax refunds.
How to Manage Your Student Loans Without Them Managing You
Posted by College Spot in College Finance
If you’re about to graduate, or if you’ve recently graduated, chances are that you’ve got some kind of student loans. Learning how to manage these college loans so they don’t negatively affect your life is an important part of your post-graduate future. While paying them off as soon as possible is the ideal way to deal with student loans, that’s not an option for most people. The next best thing is to learn how to manage your student loans in a financially positive way. Below, a few tips for handling your student loans after you graduate.
Set Up A Payment Plan
It’s a good idea to set up a payment plan for your college loans so you’ll know exactly how much you’ll owe each month. Most lenders, including the federal government, have a variety of payment options available, including payment plans that are based on the amount of income you’re earning. These are particularly good if you think you’ll be making a low salary early in your career before earning more later. Other payment plans include monthly payments that stay the same every month until the loan is paid in full.
It’s a good idea at this point to make a general budget of how much money you’ll be earning every month, as well as all your expenses such as rent, food, car payments, and any other miscellaneous items. This is a good strategy for your overall financial well-being, and also helps you come up with a realistic amount that you’ll be able to pay towards your loans every month.
Student Loan Consolidation
It can be a good idea to consolidate your student loans, particularly when interest rates are low. This locks in the interest rate until the loan is paid in full, and could save you thousands of dollars over time, depending on the amount of your loan.
Automate
Many lenders, including the federal government, offer minor interest rate deductions if you agree to have your payments automatically debited each month from your checking account. This also saves you the hassle of having to worry about remembering to mail in your payment or go online to make a payment every month.
Contact Your Lender if Financial Difficulties Arise
If, some day down the road, you happen to lose your job, or can’t make your payments for some other reason, contact your lender immediately. Most lenders have options for deferring your loan payments in the event of financial hardship, and while it’s something that should be done thoughtfully and with care, it can be a real lifesaver when absolutely necessary. Allowing your lender to know immediately when you’re having financial problems can help keep your credit score from taking a hit, as well as keep lenders from garnishing your wages or, in the case of the federal government, withholding your income tax refunds.
Terry Southerland is a career counselor and content contributor for thebestdegrees.org, a site featuring lists of accredited online degrees and specialty field endeavors such as early childhood education degree programs.