How to better manage your student loan repayment
Updated on February 17, 2020
If you are a recent college graduate, you may be struggling with your student loan repayment. Fortunately, for those who have difficulty with repayment, there are a few options available. Many young professionals will opt for one of the different programs that are available to help them to keep their student loans current. It’s important to seek help before your loan goes into foreclosure if you fall too far behind in payments. With a new repayment plan, you will be able to have more flexibility with your budget while still staying current with your student loan.
Income-driven repayment plans
If you qualify, an income-driven repayment plan will allow you to pay according to your current income. This option can help you manage your monthly bills a lot better while preventing your student loan from going into default. As the name implies, approval for the program is based on your income. Upon qualification, your monthly payment will change to an amount that is doable depending on your current income.
The process requires submitting a few forms and submitting tax and income documentation. These steps are necessary to verify your current income and determine the appropriate repayment amount. As long as you are active with your income-driven repayment plan, you will need to recertify your income each year. The forms are easy to complete and the entire process should not take too much time. Considering the outcome of a more reasonable repayment amount, it is definitely worth your time!
Once your payment has been adjusted, you can begin to focus on the overall management of your finances. With a little bit more flexibility each month, you can begin to build an emergency fund account and focus on reducing your overall debt. Having an emergency fund is helpful because it enables you to stop relying on credit when unexpected expenses arise. Financial decisions that you make in your early career will set the foundation for your financial health and well-being well into the future.
Contact StudentLoanify today to learn more about your student loan repayment options!