Taking control of your student loans is a sensible move. Many people don’t pay much attention to the money they owe, and eventually it creeps up on them. Although nobody wants to be in debt, when it comes to something like your education, it’s usually worth the expense. With that in mind, here’s what you should be doing to take control of your student loans.
Look To Flexible Repayment Options
There are many flexible repayment options available for students, so make sure you look at them to figure out which best suits you and your situation. Do lots of research before you settle on something to make sure it’s going to work. One example of a flexible repayment option is income based repayment. This is where you pay based on what you earn rather than how much you earn. You can figure out how much you’d be paying by using an easy IBR calculator online.
Know Exactly What You Owe
Don’t just borrow money and forget to track what you actually owe. Knowing exactly what you owe and who to will help you when deciding whether you can afford something. It isn’t the most fun part of being a student, but it’ll help you to make good decisions, and you’ll avoid getting into even more debt.
Come Up With A Budget Plan
If you’re a student and you haven’t yet come up with a budget plan, you’re doing yourself a huge disservice. With your budget plan, you should note down what you owe, and who to. Make sure you also note down how much money you have coming in. Then you should be able to see how much you have to spend each week/month. You won’t have much to yourself, but it’ll help you to see the bigger picture more clearly so you can relax.
Make Your Payments On Time
Always make your payments on time. If you don’t, you may have to pay even more for failing a payment. Not just that, you can affect your reputation and credit score for future loans and investments. Note the dates down in your calendar if you need to so you know you’ve paid everything off on time. That being said, it usually isn’t a good idea to pay everything off early. This can make it more expensive for you in some cases. Read the small print.
Consider Debt Consolidation
Debt consolidation involves taking everything you owe and consolidating it so you only have one payment to make each month. Obviously the cost is higher, but it can make it easier to track. There are lots of companies who will do this for you. They pay off everything you owe and then you only have an account with them, paying them an agreed amount each month. This isn’t always the cheapest way to do things, so make sure you do your research first.
Taking control of your student loans will be one of the best things you do. Use these tips to get started and you’ll feel so much better!