6 THINGS TO KNOW ABOUT REPAYING YOUR STUDENT LOANS

You’ll do whatever it takes to get a good education, right? Even if it means taking out a student loan.

First, you’ll need to know how student loan repayments work before you jump in! You’ll also need to plan how you’re going to pay back the loan after your college years are over….and reality sets in.

If you’re not planning to disappear into thin air after college, then get a job and start your student loan repayment process as soon as possible!

STUDENT DEBT LOAN STATISTICS

Here are some basic facts about student loan debts in the US.

  • It is sad to say that student loan debts keeps growing every year. It is the second highest consumer debt category in the United States.

From all of these, you’ll agree that student loan debts take a toll on many folks, and the US financial institutions are beginning to see it as a burden.

WHERE AND HOW TO START YOUR STUDENT LOAN REPAYMENT PROCESS

You are not under any obligation to repay your student loan while you’re still in school or during the six-month grace period after school. However, you will gain a lot from repaying your loan early.

One of the biggest benefits of early student loan repayment is reducing how much interest you’ll have to pay.

According to Elaine Griffin, a senior contributor and communications specialist at Edvisors, it’ll cost less in the future once you enter repayment if you get that principal down.

So, how do you get the principal down?

HAVE A CLEAR UNDERSTANDING OF WHAT YOU’RE UP AGAINST

The very first thing you have to do is to get organized.

You may think you know all of your student loans, but it will be a good idea to visit the National Student Loan Data System to be certain of what you’re dealing with. Also, get a copy of your credit report to help you understand your private student loans better.

You can also use the special calculator for student loans, designed to help you compute an estimate of the size of your monthly loan.

CONSOLIDATE/REFINANCE YOUR STUDENT LOAN

It is possible that you took out more than one student loan. Consolidating your student loans allows you to combine all of your loans in one and have a single monthly payment instead of multiple payments, which will definitely help keep you organized!

Keep in mind that you can always get a lower student loan interest rate. You can do this in three ways: signing up for automatic payments, always paying your bill on time, and refinancing your student loans with a private lender!

GET INVOLVED WITH SOME SIDE HUSTLE TO EARN SOME EXTRA CASH

Millennials are getting involved in side hustles more than ever before; which is a good thing. You get to earn some extra cash to help you pay off your student debt and even put some aside for the rainy day. Emergencies happen, that is one of the reasons you need to save.

A side hustle will not only help you to pay off your debt, it will also help you to develop new skills and even to pursue your passion. Here are the most profitable side hustles that can help you earn extra cash.

SEE IF YOU’RE QUALIFIED FOR LOAN FORGIVENESS

Did you hear that the DeVry University ran into some serious debt sometime in 2017 for falsely claiming that 90% of their students were hired in their fields within six months of graduating?

As a result of this false advert, they had to pay $100 million settlement with the FTC, which includes close to $50 million cash settlement to qualifying students. This means that qualifying students who took out loans to pay for their tuition in DeVry may not have to repay the loan.

Well, not everyone went to DeVry University, but there are some factors that may qualify you for student loan forgiveness.

Any of the following can qualify you for a student loan forgiveness

  1. Become a public school teacher in a low-income area
  2. Get a job with a public service
  3. Join the military
  4. Apply for an income-based repayment plan

Are you on a student loan repayment process? Let us know how it is going so far, and if you need help!