Repayment Tips for Student Loans – Part 2
Repaying your student loans right after graduating college can be overwhelming. Many students don’t realize how much they’ve actually borrowed to get themselves through school. In the first half of our 2-part blog we discussed repayment options for your student loans. Now we will discuss why it’s so important to keep your lender in the loop of your financial situation, especially if you’re falling behind on your payments.
Stay in Touch with Your Lender
Whenever you move or change your phone number or email address, tell your lender right away. If your lender needs to contact you and your information isn’t current, it can end up costing you a bundle. If you’re getting phone calls from your lenders don’t hide, talk to them. Lenders are supposed to work with borrowers to resolve problems and collection agencies have to follow certain rules.
If you’re having trouble making your student loan payments because of unemployment, health problems, or other unexpected financial challenges, remember you have options for managing your federal student loans. There are ways to temporarily postpone your federal student loan payments such as deferments and forbearance. If you expect your income to be lower than you’d hoped for more than a few months, check out your options and keep your lenders in the loop.
Pay Off the Most Expensive Loans First
If you’re considering paying one or more of your student loans ahead of schedule or are trying to reduce the principle, start with the one that has the highest interest rate. By doing this you may end up saving yourself some money in the long run.
Stick to A Budget
Once you determine a monthly obligation, try and keep track of other spending to ensure you can pay all your bills. Websites such as Mint.com can help keep you on track of your payments while letting you know how much you’re spending. If you find yourself scrimping or sacrificing to make your monthly student loan payments, it may be helpful to remind yourself what you’re paying for. Keeping your eye on the prize can help navigate you through the tough financial times and keep you positive about what’s the future holds.
Remember, defaulting on your student loans can have serious consequences so it’s in your best interest to stay on track and pay your loans on time.
Westface College Planning can help you navigate the college planning process from start to finish. To learn how we can help you wade through your student loan options call us at 650-587-1559 or sign up for one of our Tackling the Runaway Costs of College Workshops or Webinars.
Photo Credit: Images_of_Money
Ready for your own success story?
If you’re a typical parent with college-bound students, you’re probably overwhelmed. You want to help your sons and daughters make the right choices and prevent overpaying for their education. You’re not alone! We’re here to help. Schedule your free consultation today – click below to get started!
Catch our free, on-demand webinar:
How to Survive Paying for College
Join Beatrice Schultz, CFP® for our on-demand webinar, where she provides parents with the exact steps that often greatly lower the cost of college, even if there’s little time to prepare.