At college or university, your only responsibility was to study. You kept yourself busy with exams, essay writing, and countless extracurricular activities. If you didn’t manage to land a grant or scholarship, student loan was an absolute necessity. When you had time to think about the process of returning the loan, you were confident in your abilities to get a great job and work your way towards a successful career.
Unfortunately, the reality is bitter. Most people are struggling to make these loans more manageable. Don’t be one of them! The following tips will help you handle student loan debt successfully.
1. Know everything about your debt
Are you aware of the actual debt? Maybe you simply know that you owe some money? If you want to manage the student loan successfully, then you have to know the actual balance and repayment status. If you don’t know this information, you can conduct a search through the National Student Loan Data System. You’ll find a list with repayment statuses for all federal loans. If you also have private loans, make sure to look into the paperwork you signed and ask the company for records.
2. Appreciate the grace period
Most lenders grant a grace period after graduation. You won’t be obliged to pay installments during this period, but relaxing is the worst thing you could possibly do. Make the needed research, understand the loans and plan how you will repay them. At this time, you’ll probably realize that you owe a considerable amount of money. Don’t be terrified when reality hits you; take action and start making payments as soon as possible.
3. Consider public service loan forgiveness
People who work in the military, government, or non-profit sector may qualify for this program if they have an outstanding balance after a decade of on-time payments and they use an alternative payment plan. If you have been making regular payments for 10 years and you still owe money, then make sure to check your options and apply for public service loan forgiveness.
4. Make additional income
Your 9-to-5 job may not be enough to cover all your needs and responsibilities. You should consider the option of making additional income. For example, you can work for an essay writing service. If you were always great in academic writing, you can start gaining actual benefits from that talent.
When you write your first essay according to someone’s instructions, you’ll see that you have much more potential than you ever realized. Set this money aside and use it to make payments towards the loan.
5. Take it seriously
People who ignore their student loans face grave consequences. If, for example, you fail to make payments for a federal loan for nine months, your total loan balance will become due. To make things simpler, your credit score would be disastrous and you’ll feel the effects of that irresponsibility for a lifetime. Private loans are even worse, since most of them don’t give you nine months before default.
Of course, you need to stay positive and avoid thinking that the worst would happen, but you should still be aware of the realistic consequences that you need to avoid.