First Summer With Student Loans
Hello again recent indebted graduates from class of 2014. For you graduation has already come and gone, and the time to celebrate your accomplishments ended and turned into an intensive job hunt and saving (if possible) to start paying your student loan debt.
While you used to think of summer as your time to take a few extra courses, or enjoy a nice vacation, now that you entered the “real world” of life after college, the main thought in your mind, besides the beach, it is probably your student loans.
Some of you might be tempted to ignore them until later on, yes we are talking to you, procrastinators… who wait til last night to write that paper… you may be thinking “meh, whatever I still have time to worry about repaying my student loans”, we say DO NOT WAIT, start thinking about them right now, starting early could help you save thousands of dollars in the long run. Plus the added peace of mind is just a bonus!
Here we give you 3 main reasons why you should tackle your student loan debt RIGHT NOW instead of waiting until the fall, or the end of your grace period.
1. You don’t need to wait for your grace period to end in order to start repaying or refinancing your loans.
Many people believe you have to wait for your six-month grace period to end in order to begin repaying your loans, but that’s not the case. The fact is, that approach can cost you – because interest is still accruing on many student loans during that time, only adding to your balance.
So how to begin? Start by making sure that your balance is correct and that you are clear on your repayment plan.
And don’t forget, any loan payments you can make during this grace period come with the added benefit of reducing your interest before it capitalizes, which could potentially save you thousands in interest payments over the life of your loan.
You might find that you’re struggling to have enough money to pay. If so, it will help to make a budget. Getting all your monthly income and expenses down on paper (or a spreadsheet) is an essential starting point for both day-to-day money management and setting your short- and long-term financial goals.
If you’re still job searching, or not yet sure of your exact postgraduate compensation for the fall, research the typical cost of living and salary figures for your target job, in your target location, in order to get an accurate as possible estimate.
Now take a step back and compare your budget to your loan payments. You know exactly what your interest rates are and what your loan payments will be. Can you meet your payments? With your budget in hand, determine your ideal monthly payments.
2. Even if you don’t start paying anything now, you can still refinance and honor your grace period.
A handful of lenders will actually honor your grace period even if you refinance within this six-month span. This means you can accrue interest at a lower rate on your newly refinanced loans now, without worrying about having to refinance them once your grace period ends.
Refinancing is a chance to pick a new loan at a rate and term that’s right for you, with a lender you really enjoy working with – maximizing the investment you made in your education. Need a handy way to see how much you can save through refinancing? You can use this calculator to review your potential savings on a monthly basis as well as over the life of your loan.
3. Your financial aid office will be highly accessible over the next few months.
Another advantage to tackling your loans now as a fresh graduate is that you’re still closely connected to your financial aid office. If you discover any issues with your loans, reach out to the office promptly and ask for assistance. You’ll beat the “back to school” rush and get your finances in order well in advance of grace period.
If you’re juggling multiple priorities, from evaluating home-ownership in the next few years to becoming debt free quickly, and you need help consolidating multiple loans to have only one easy payment contact us right now at 877-433-7501. One of our expert student loan counselors can help you get all your student loans in order and make it simple and easy for you to make your monthly payments.
Eric Douglas Statzer says
Your after school grace period is a perfect time to get your loans bundled together and consolidated. The sooner you get started with these programs the better! A consolidation can take several weeks so take advantage of the “free time” you have once you finish school to get your loans manageable right out of the gate!
Call the counselors at USSLC and see what benefits you will have right out of school!
-Eric Statzer