Tips to Pay Off A Student Loan

Many who take out a student loan, assume that a job will be waiting for them after graduation. But the reality is, the economy continue to struggle. There are still fewer jobs available today. And the competition for jobs is fierce. Many students never imagine that they would be confronted with serious obstacles to get a job after finishing college. The salaries are not as good as they once were to start a job. It has become increasingly difficult for many college graduates to pay off a student money loan as easily as they use to.

Here are 11 tips to help you pay off a student loan.

1.Frugal lifestyle

You should practice a frugal lifestyle in the early period of your career. Spend only on necessities. Try to spend sparingly on unnecessary things. By keeping your monthly expenditure low, you will be able to save enough money to pay off your monthly installment loan.

2.Pay during the grace period

Usually student loans give a grace period. This is the period during which no interest is accrued on the loan. Try to pay off as much debt as you can during this time. This will help you keep the cost of the interest lower.

3.Refinance your student loan

If you cannot pay off your debts on time, consider refinancing or rescheduling your loan with another bank. Be very careful with making this decision, as it will impact your finances. Make sure you receive complete information about refinancing the student loan, and carefully evaluate all of the advantages and disadvantages to avoid problems in the future with paying off the loan.

4.Reduce your payment

If you find that the amount of your monthly installment is more than you can afford to pay, you can decrease the amount by extending the term of the loan. The drawback will be that you will have to pay more interest. The benefit is that you will find it easy to manage a smaller amount of the installment.

5.Consolidate your loans

Consider consolidating your student loan with your other loans. It doesn’t necessarily mean that interest rates will be lower. But you will have the ease of one payment. And there may be some perks that will be beneficial to you.

6.Seek help from your employer

Check to see if your employer can assist you in repaying your student loan money off. Some employers offer this perk to their employees. If your job performance is exceptional, the employer might be willing to help you to pay off your student loan. This is a way to encourage and show employees of their support for education.

7.Contact the Office of Personnel Management

Graduates, who are working in government agencies, can contact the Office of Personnel Management (OPM). The government can pay off a portion of your student loan.

8.Seek Hardship Status

If you have a legitimate hardship status, the repayment of your student loan money can be evaluated based on need. One example of legitimate hardship is lengthy medical illness. A student loan can be cancelled if you are suffering from a lengthy medical illness, which makes it impossible for you to be able to repay your loan. Extended period of unemployment may also be a legitimate reason for being awarded hardship status.

9.Contact the Department of Education

If you cannot find a job and the loan becomes due, contact the Department of Education. You make be awarded a hardship status, due to extended unemployment. Also try applying for postponement of your student loan repayment

10.Contact a National Ombudsman

If you feel that the terms of your student loan are unfair and inappropriate, you can contact a national ombudsman. The ombudsman can act as a mediator and help resolve your conflict with the loan provider.

11.Seek grants

Some institutes and organizations provide grants for paying off a student loan. For example, if you join Teach for America or Ameri-Corp, you can be eligible for such a grant. Teaching in a low income school can also make you eligible for being forgiven student loans.

Follow the above mentioned tips for repaying your student loan. And you will be able to take control of your debt situation. These tips can help you devise a workable plan to repay your loan. Once you have worked out the best course of action to pay off a student loan, you can put your payment on autopilot and relax.

Category: Articles
Tags: