While higher education is an extremely important investment and opens many doors for you in the future, it can be extremely difficult to afford without loans. Student loans are a big issue for many people in the country, and most find it difficult to pay off their loans on time. It is important to have a debt plan in place to figure out exactly how much needs to be paid and how you will make a payment schedule that works for you.
Trying to pay off student loans while also trying to buy or rent a home, pay your bills, and start a family is difficult to juggle without a well-thought-out plan that you follow diligently. Let’s take a look at some of the things you can do to pay off your student loans in a timely fashion and reduce the financial burden you may be facing.
Figure Out the Exact Amount You Owe
It is important to take the time to properly understand how much money you owe in loans, whether you have multiple loans or all of them to the same loan service, the interest rate for each of the loans, and the monthly payments. It would be good to keep all of this information well organized, possibly in a spreadsheet that is easy to access. Once you know the exact amount you owe, you can figure out a payment schedule that suits you and start making headway to pay off your loans.
Make The Most Out of Your Grace Period
Depending on where you live and what loan service you have taken a loan with, most student loans have a grace period where you do not have to make any payments. Usually, this period lasts around six months from your graduation. This grace period, if used correctly, can be a huge help in getting started on your loan repayments. You can use this time to start working and saving up money. You can even make advanced payments and start paying off your loan’s principal amount. This way, once the grace period ends, you will have already have made some headway into paying off your student debt.
Schedule Automatic Loan Repayments
With many other things in your life, sometimes you may forget to make your loan payments on time. This can negatively affect your credit score and mess up your repayment schedule. If you set up automatic payments from your checking account, you won’t have to worry about missing payments or damaging your credit score. Some loan services also offer lower interest rates for people that use automatic repayments.
Take Up a Part-Time Job
If you have free time and a generally easy day-to-day schedule, you can take up a part-time job or a side hustle to earn some extra money. You can set aside this entire extra salary or any earnings you make from the part-time job for your loans. You could easily earn a couple of hundred dollars every month that can go towards repaying your student loans. This means that your primary income can be stretched further and allow you to live in a more financially comfortable way.
Apply for Different Loan Forgiveness Programs
You can look into and apply for certain programs that allow loan forgiveness and reimbursement. Certain criteria have to be met for you to be eligible for such programs, such as working in public service or the education sector. It could be a good idea to look into such programs in your state and look into the application process.
Consider Filing for Chapter 13 Bankruptcy – The Law Offices of John E. Mufson
Another way to reduce or eliminate your student debt is to file for Chapter 13 bankruptcy. The biggest benefits that you can get from filing for chapter 13 are that it stops repossession and foreclosure and stops the accumulation of interest on your student loans and other debts. For more information on a debt plan involving chapter 13, get in touch with the Law Offices of John E. Mufson in Delray Beach, Florida. You can visit their website https://www.mufsonlaw.com/contact-the-law-offices/ or call at 561.272.1003 for a consultation.
Our Final Thoughts
Student loans can be a huge burden if left to accumulate and not paid off in time. It is better to get started repaying your loans sooner rather than later. Follow the plans we have laid out to take a more proactive approach to your loan repayments and hopefully pay off your loans on time.