Whether you just graduated or are a seasoned loan paying veteran, your student loans should be handled responsibly. That means avoiding extra fees, keeping your payments affordable and protecting your credit rating. Our tips will help you keep your student loan debt under control.
1. Repay your student loans automatically
Missing payments can get you into financial trouble, but it’s very common. Setting up payments automatically through your bank account should reduce the chances of late or missing checks.
2. 10 year loans
The traditional repayment period for student loans is 10 years and ideally you’ll be able to pay off all your debt within that time period. If you end up struggling with your monthly payments, however, you could stretch out your loans to 20 or even 30 years. Your monthly payments will become more manageable, but you will end up paying a lot more in interest.
3. Pay off the loans with the highest interest rates first
Luckily, you won’t get penalized for speeding up the repayment of a student loan. Consequently, you’ll want to use any extra cash to pay off the loan with the highest interest rate first.
4. Learn about new repayment options
Each year seems to bring changes to programs concerning federal student loans. Unfortunately, borrowers are often unaware of how these changes may impact their financial situation.
5. Consider loan consolidation
Consolidating several of your student loans can help you manage your debt because you only need to keep track of a single monthly payment.