Student Loan Repayment Tips
Important facts we have been sharing with you that you should know by now:
* The average college graduate leaves college with a debt of over $30,000.
* During the first 5 years after graduation, 4 out of 10 student borrowers become delinquent in repaying their loans. This can lead to extra fees and interest costs, as well as a major hit to your credit score.
* College tuition is an all time high.
* A lot of graduate students find themselves unemployed or underemployed after graduation, making it hard to make their student loan payments.
With all the fuss about student loan debt in the past few days, weeks, months to be honest, everyone and their mother seem to have an idea on what the government should do to lower the interest rates, what parents should have advised their kids before going to college, what you need to eat or not eat to cut expenses and manage your finances better, and so forth.
So whether Republicans and Democrats will finally agree to disagree and agree on a solution to help student loan borrowers currently struggling to keep up with their student loan payments, these useful tips can help you… you know, while we wait on the government…
Understand the terms of your loan(s).
Chances are, you have more than one loan with different lenders. As a result, your options for loan repayment will vary. The U.S. Department of Education’s National Student Loan Data System provides loan amounts, lender information and repayment status for all government-funded federal student loans. Private student loans are financed through a bank, credit union or other nongovernmental lender. Private lenders set their own interest rates, loan limits and other conditions. You will need to contact your private lender directly to obtain full details on the terms of your loan.
Consider loan consolidation.
It is challenging to keep track of multiple loan payments. Consolidating your student loans will create a more convenient single monthly payment. Consolidation does increase the term of the loan and the amount of interest paid over the life of the loan. However, by extending the repayment term, it can reduce your monthly payments by almost half.
Ready to consolidate? We can help you process your student loan consolidation! Contact us right now at 877-433-7501 to get started today!
Figure out your repayment plan.
Some loans have a grace period of six to nine months before the first payment is due. Depending on the loan type, interest may or may not accrue during this period. Having a little bit of breathing room after graduation can be helpful as you find and start a job. However, it also makes it easy to forget that a payment is due. Up to a third of borrowers miss their first student loan payment. Your credit rating can take a hit with just one missed payment. Automatic payments set up through your bank checking account can ensure you meet your financial obligation each month. Some lenders offer discounts for these automatic debits, too.
US Student Loan Center uses the best repayment programs available through the US Department of Education to get you the lowest student loan payment possible. Call us at 877-433-7501 right now to discuss your repayment options today!
Do not default.
Should you find yourself unable to make loan payments due to a job loss or other circumstances, it is always better to seek for help and find a better solution for you than to default. Penalties for defaulting on student loans can be severe. They can include garnished wages and Social Security benefits, and government retention of tax refunds. In addition, you may incur late fees and collection charges.
Instead of defaulting, consider these other options:
Deferment.
If you qualify, you can temporarily halt payments on the loan principal by applying for a loan deferment with your lender. During this time, the federal government will pay the interest on subsidized federal student loans, but not unsubsidized loans.
Forbearance.
A forbearance allows you to temporarily modify your loan terms by stopping or reducing monthly payments, or extending the repayment time period. Depending on your situation, you may or may not have to pay interest on the loan during a period of forbearance.
Loan Forgiveness.
Loan forgiveness programs eliminate loan balances (and payments) for people who meet certain criteria. These include working in eligible public service positions, such as in law enforcement or public health; military service; volunteer work; and teaching or practicing medicine in a low-income, rural area.
Cancellation.
In extreme cases, such as disability, you may be able to get your loans discharged.
If you are still in school, make sure you complete an exit counseling session with a financial aid officer at your school before your graduate. This representative will review the terms and conditions of your loans, including repayment options and your rights and responsibilities. This is the time to ask questions and map out a plan for repayment. Then you can focus on the really important tasks like landing that dream job and starting your bright future.
If you need further help, we have your back! US Student Loan Center offers easy, quick and affordable solutions to any of the most common or most complex issues associated with the repayment of your student loans.
We will attempt to enroll you in any Income Based Repayment Program you may qualify for, or a loan forgiveness plan that may be available for you. Your eligibility for student loan forgiveness depends on the type of student loan in question.
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