When you graduate and find a job, the grim reality of repaying your student loans hits. Below are 5 steps which can be taken to help keep the payments from causing you heart-ache.
1. The 1st rule is to stick to a payment plan. Put aside a certain quantity each month for your loan payment. Making a larger payment than required each month can help you pay back the loan earlier, so saving you a great deal of money on interest. If you think you may forget, set it so the payment is electronically transferred every month.
2. Though rates of student loans are low compared to mastercards and other loans, it's still a exasperating reality to deal with. There is, however, hope, if you are making under $65,000 on your own or less than $130,000 if filing jointly you can take up to $2,500 of the annual interest you're paying on your student 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 line up graduated repayment plans with your lender. You start with a low monthly payment which will steadily get larger over the term of your loan.
4. If you're totally out of options, you might be able to briefly postpone your payments. If you get downsized or return 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 look after the interest that accrues during your deferment.
5. If you can not get a deferment, try forbearance. You can postpone payments for at least a year, though you'll still be responsible for the built up interest.
1. The 1st rule is to stick to a payment plan. Put aside a certain quantity each month for your loan payment. Making a larger payment than required each month can help you pay back the loan earlier, so saving you a great deal of money on interest. If you think you may forget, set it so the payment is electronically transferred every month.
2. Though rates of student loans are low compared to mastercards and other loans, it's still a exasperating reality to deal with. There is, however, hope, if you are making under $65,000 on your own or less than $130,000 if filing jointly you can take up to $2,500 of the annual interest you're paying on your student 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 line up graduated repayment plans with your lender. You start with a low monthly payment which will steadily get larger over the term of your loan.
4. If you're totally out of options, you might be able to briefly postpone your payments. If you get downsized or return 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 look after the interest that accrues during your deferment.
5. If you can not get a deferment, try forbearance. You can postpone payments for at least a year, though you'll still be responsible 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.
No comments:
Post a Comment