How To Manage Your Student Loan Debt
posted on Monday, March 13, 2023 in Financial Tips
Managing Your Student Loan Debt the Smart Way
A lot of people today still see a college degree as a necessary part of becoming successful in life. However, more often than not, it requires a lot of money. Hence, people sign up for student loans to get the chance to get into good schools.
Although these loans can help you with your education, they can hinder achieving your financial goals if not planned correctly. Don’t let your student loan hold you back. Here are some ways how you can manage it:
Review How Much You Still Owe
Like any other type of debt, you should know how much you still need to repay. You can research your student loan type and check the National Student Loan Data System to find all the repayment plans available. After familiarizing yourself with your loan, you can form a debt payoff strategy.
Check if You Qualify for Loan Forgiveness
Deb forgiveness programs and options are available to those with federal student loans. Some employers may offer student loan payments as benefits. Others may even allow you debt forgiveness after making payments for 10 consecutive years if you’re in a government-related position or job. There are also options for those who work in in-demand professions in low-income or rural areas.
Explore Other Payment Plans
Besides the standard 10-year payment plan, there are other alternative plans that you can consider in choosing. Some may allow you to stretch out your loan longer, while others can calculate your payments based on your gross income. These can help you pay off your loan faster without negatively affecting your other finances.
Consider Consolidating Your Debts
If you have multiple debts, you may consider consolidating them into one single loan instead. Doing so can help you streamline everything you need to repay. For those with federal loans, debts can be combined through a Direct Consolidation Loan. It can help lower your monthly payment by extending your term.
Those with private student loans aren’t eligible for a federal Direct Consolidation Loan. However, they can still combine their debts into a single private loan. It can still help streamline your payments. If you have federal and personal loans, it’s best to keep them separate. Do remember that you must repay two loans instead.
Smartly paying off your student loans can give you peace of mind knowing that you won’t have worry about them longer than you need to. Should you need any help with this matter, talk to one of our C1st representatives at Community 1st Credit Union. Learn more about your options with us today.