When paying back student loans, as a borrower, you have certain responsibilities. It is essential to keep your loan record squeaky clean. If you default with even one payment, then it will not look good. Always make your loan repayments one of your highest priority.
It is much easier to keep your record clean than to fix a tarnished credit record and the problem is that our records will follow us for years to come. So a bad mistake made right now will have longer term disadvantages.
Always talk to your financial institution if you feel you are having trouble coping with your loan repayments. Believe it or not, most institutions are only too happy to help and the big thing some students seem to overlook is that …
… these financial institutions already have the answers to solve your problems, it's just that you may be unaware of the easy solutions that already exist …
That is why it is most important to discuss your situation with these professionals, they are also human, they would have gone through the same struggles that you may be facing right now and will easy be be able to guide you out of the financial jungle.
There are many different methods to help with loan repayments some of which are:
Graduated . You might pay lower repayments at the start of your loan and they can gradually increase over time.
Standard. The standard type of payment with interest and principal paid as per the normal conditions of the loan
Income Sensitive. This is where you can actually pay a percentage of your monthly income, this method is tailor made for each individual.
Extended. This is usually where you will pay much lower repayments but they will be carried over for a longer term eg 20-25 year.
Consolidation . This is where you can put all of your loans into one bigger loan plan, this can also help lower your monthly repayments.
Prepayment. You can also opt to pre-pay your loan payments, in other words you can pay your loan payment in advance and this will have the added advantage of greatly improving your credit rating.
Other Things To Consider:
I hope you have gained a few more ideas about paying back student loans and wish you good luck in your endeavors.
- Check with your state and find out if they offer additional services and study programs that may apply to your study.
- There are also many various civic and religious organizations that may also offer help and additional support and solutions and may help with your repayments.
- Keep a close track of all your personal expenditure. Make a spreadsheet to show you the results of your efforts, a simple income and expenditure guide.
- There may be other types of payment relief programs that are available, you just need to do a simple search to find them. Just start asking the right questions.
- Alternate Income Sources. You might like to think about starting up an online business that will create a passive income or my favorite is setting up your own crowdsourcing program which will help alleviate your cashflow problems.