Its difficult to manage new monthly expenses for recent grads who has not found steady work yet. But the grads have many more options for managing student loan payments or getting way out of loan debt if they qualify.
The most important thing is to manage your credit score and avoid missing your loan payment. Here, in this article, we will talk about a few ways to help you manage your student loan debt more effectively.
Best ways to manage student loan debt
If you are able to manage your credit score, you may be eligible and qualify for your refinancing student loans. Refinance student loans helps you to consolidate your existing private and federal student loans into a new, single student loan with a lower interest rate.
Understand your loan term
There are so many student loan lenders available in the market who offer loans and give a grace period of 6 months before they have to pay their installments. But the important thing to remember is to know your loan terms to find out the best option for repayment. You can also ask them for deferment when your grace period is about to expire.
Suppose, Perkins loans is giving 9 month’s grace period for before their first loan installments. While Stafford loans gives only 6 month’s grace period before their first payment is due.
Ask for Deferments
Are you still looking for a better job with a good salary so that you can manage your student loan payments? You can ask for a forbearance or deferment for some loans, but you need to ask your loan lender for the same, if you are not able to pay your installment for some period.
If you don’t know much more about this, let us explain it to you. Deferments allow you to put temporarily hold on your installments so that you can manage money from your end. During this period, the government will pay interest on 3 types of loans: subsidized federal stafford loans, Federal perkins loan and direct subsidized loans.
There are many factors that will help you to qualify for forbearance or deferments too. Some of those factors includes unemployment, serving in the military, economic hardship and many more.
If you are not still qualified for that, you may also request your lender for forbearance, which helps you to manage around 12 months without paying any installments of your loan. However you still have to pay the interest on your balance.
Contact your lender about repayment options
Lenders sometimes offer borrowers flexibility in loan payment with reduced monthly payment. Since they have standard loan repayment plan with less flexibility, but still understand their borrower’s financial situation and help you with reduced monthly payment or more flexibility wherever needed.
So, if you are struggling with paying your student loan debt, you should definitely contact your lender and ask for flexibility in your repayment schedule. It is better to tell them complete financial situation than miss the loan payment. As if they understand, you will get some time to manage your finance and work stress free to get more money.
Here in this article, we have wrote about 3 ways that helps you to manage student loan debt effectively. If you have any other ideas of managing loan debt, feel free to share your views in the comments. We would love to hear from you!
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