Students’ debt is one of the problem many people encounter especially when sometimes you spend almost all your working career working. Currently it’s estimated that students’ loan is the major reason why most graduates can’t own a home. Which is why it’s advisable to start measuring your students loan while at school, and it is critical to your financial life in the future. It is estimated that about $1.5 trillion is being owed in US as students’ loan.
How do students get so much debt?
Due to the high rate of inflation and increasing Tuition fee, which sometimes comes suddenly many students end up getting into debt in order to fulfill their dreams of having a better Education. Then extravagant nature of some students also contributes greatly to increase in students’ debt. Most students spend most of their money on wares and household items.
What is the best way to control debt?
One of the best ways to get out of debts in this life is to be able to manage your expenses, especially cutting down unreasonable ones, being honest with your expenses will help you to come out of debts faster, before you spend check if you’re expenses is worth it. The best way to reduce debts is working on yourself and avoid too much spending
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In order to manage your students loan, you can develop the right plan. The following steps are needed in order to manage your students loan,
Calculate your students loan
It’s good you understand how much you owe in total, sometimes most students owe multiple loans, like federal and private, in this way you can be able to have a plan on how to consolidate it or you can explore options in https://studentloansresolved.com/student-loan-forgiveness/
Know the Students Loan Terms
You should be able to understand your students loan, every loan has her own policies, with different interest rates and Repayment periods, so try to pay on time to avoid extra loans. This repayment plan will help you to avoid extra interest rates, penalties, and fees.
Check Grace Period
Try to know how long it will take you to repay your loan or when your loan repayment plan will start. Grace Period differs per loan. Some loans gives you options of repaying after 6 months or 9 months.
Consider students’ loan consolidation
Consolidation decrease your monthly payment, but it ends up lengthening your loan repayment period, and you will end up paying more interest. And sometimes the consolidated loan options is normally higher than the loan itself. Consolidation makes, you to lose your deferment options and income based repayment plans that would have come with federal student loans.
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Take the debt Avalanche road
It’s good you pay off the loans with the highest interest first, the easiest way to achieve this is to pay the loan with the highest interest first. You can budget above your loan repayment fund and pay the highest loan option. You can also end up applying it to the second loan options once you’re done.
Explore Students’ Loan Forgiveness
If you can afford the monthly repayment options, you can apply for loan forgiveness via https://studentloansresolved.com/public-service-loan-forgiveness/ or you can apply for students’ loan discharge. Discharge can be granted if your school shutdown after your graduation.
It’s easier paying down the principal anytime you can, as this will help you to pay off your loan faster and with a lesser interest, which infers less principal less interest.