How to be smart about your student loans
Updated on November 18, 2019
With thousands of students graduating each year, parents and graduates are faced with the sad reality of huge student loan bills in their mail soon after. If you’re one of the 40 million people in the United States with federal student loans, a good repayment strategy after graduation can help you eliminate your debt.
Failing to pay your student loan post-grad can adversely affect your finances, career, and future plans. Some parents still have student loans to repay due to the lack of a proper repayment strategy. Thus, you need to be smart about your student debts if you want to avoid default.
Here are some tips you can use for better student loan repayment.
1. Change of status
Missing a message from your loan holder can cause you to forget your repayment plans and miss essential updates. Thus, in case of any changes, you must notify your lender to be up to date. Changes include…
You change your telephone number, home address, and email address
You transfer to another school
You change your employer
You withdraw from school
All these can affect your loan positively or negatively, requiring you to notify your lender. For instance, acquiring a job affects your eligibility for unemployment deferment. Thus, you have to start making loan payments since you have a source of income.
2. Maximize your income
If you want to have more money on your paycheck each month, you need to maximize your income. Having one low paying job won’t do much in reducing your student loan debt. Consider starting a side hustle or business that pays your electricity, food, and rent bills to avoid straining your monthly salary.
3. Lower your expenses
After finishing college, you need to start living on a low budget to save as much as you can. You don’t need to go out every night and travel around the world. The money you save can help you pay off your student loans within no time.
Student Loanify can help you develop a student repayment plan that suits your current financial status. Contact us today to have a look at our student repayment plans.