7 tips for paying off student loan debt

Category: Student Loans

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New college graduates usually have a six-month transition period before they are expected to begin paying off their student loans. New college graduates can make the student loan repayment process manageable by taking control of their finances and adhering to the enforced guidelines. Actively working with your lender now will make for a more efficient transition to repayment.

As graduates start their new careers after finishing school, Sallie Mae and America Saves provide the following student loan repayment advice to help graduates with successfully paying off their student loans:

Know the exact amount of your monthly payments

Build a budget that factors in your monthly student loan payments. You may discover that you need to get rid of unnecessary expenditures in order to have enough available funds to make your student loan payments, or you may realize there are things you can get rid of to pay off your student loan debt even quicker. Speak with your lender or visit their website to determine the various payment options that are available to you, and which one is ideal for your financial situation. Doing so can save you a lot of time and money.

Set up your payments to be deducted automatically

By setting your student loan payments up on an automatic schedule, you will save yourself time, postage, and most significantly, you will have peace of mind from knowing your payments are always timely. Some creditors may provide a lower interest rate for setting up an automatic repayment plan.

Don’t miss a payment

Enrolling in an automatic repayment plan would solve this potential dilemma, but if you decide not to, just be sure to never miss any of your monthly student loan payments.

Seek assistance if you are struggling with monthly payments

Contact the lender to review your different options. A different repayment plan or a temporary postponement of payments may give you the extra time you need. You can also think about nonprofit consumer credit counseling.

Notify your lender about any important changes

If any of your contact information changes—such as your mailing address, email address, or phone number—it is vital to inform your lender. Keeping your creditor informed with your most up-to-date information will guarantee that you always receive must-know information on your student loan, such as payment due dates, which can help you stay on track for repayment.

Be cautious of potential scams

There are fraudulent organizations that provide tempting offers to debtors, such as lowering or completely eliminating student loan debt. If you have any worries about the services that an organization is proposing to you, speak with your lender to confirm whether or not they’re authentic offers.

Keep some money stashed in case an emergency should arise

You never know when something might suddenly happen, resulting in a major change to your financial situation. For example, you could lose your job, which will suddenly put student loan payments on the backburner if you only have enough money to pay for absolute necessities, such as rent and food. Life can be unpredictable, so it is crucial to be ready for anything life might throw your way and to have the funds available to make timely student loan payments.

If you’re receiving long-term annuity payments, we can buy some or all of these future annuity payments from you and offer you money now. The cash you receive from the sale of a long-term annuity payment stream can be used to take care of the expenses that have been piling up, such as your student loan payments. Otherwise, if you are doing well with your student loan repayment plan, but do not have money set aside in case of an unexpected emergency, you can sell some of your future annuity payments for cash now and keep that cash aside to pay for your expenses should an unexpected situation occur.

 

Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.

Tags: debt, Emergency Fund, monthly bills

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