Saturday, May 28, 2016

Do Away With Your Student Loan Debt – Important Steps You Should Follow

Completing graduation degree with thousands of dollars can be a sort of burden for you. The college education is costly and unfortunately, most of the students require financial help to continue their higher studies. This is one of the main reasons why many students have to start their job life with huge debt burden. Though student loan provides low monthly payments for 15 years, you may eliminate your student loan debt as soon as possible. You may use a debt payoff calculator to understand as to how much you’ll have to pay every month to repay your student loan debt. Thus, the earlier you get rid of student loan debt, the easier it will be for you to manage your personal finances in a better way.

 A debt payoff calculator allows you to insert the total amount you owe, the rate of interest on each of them and how much you are paying for them every month. The debt payoff calculator calculates the numbers and informs you exactly how long it will take to pay off your debts. It is easier to use a debt payoff calculator than trying to make your own with formulas and a spreadsheet.

5 Steps to do away with student loan debt

Have a look at the 5 steps to do away with student loan debt

Consolidate all your loans into one loan – It may happen that you had taken out more than one student loan to complete your higher studies. You may consolidate all your student loans into one loan in order to make one low payment every month and at reduced interest rate. There will be lesser chances to make late payments or miss out payments when you have to make only one monthly payment on all your student loans.

Talk to your lenders about your financial condition – If your financial condition is not strong due to which you cannot manage to pay off the student loan debt, you may talk to your lenders about your financial condition. You may also ask them to make some kind of arrangement for paying off the student loan debt. You may request them to delay the payments for the time-being and tell them that you’ll pay off the student loan debt once your financial condition improves.

Select the right repayment plan – The repayment plan may consist of a minimum monthly payment that will not change throughout the loan term period, a payment that increases every year till you pay off the full loan amount or an income-based plan in which the loan payment is dependent upon your salary. However, there are some types of loan that enable you to change your repayment plan once a year.

Formulate a well-planned budget and stick to it – Once you get your first job, you should formulate a well-planned budget and follow it accordingly. Make sure you keep a certain amount for your necessary expenses and try to save at least 10% of your salary every month. You can use your savings to pay off the student loan debt and come out of such problems soon.

Find suitable ways to manage your debt payments – Even though you are not able to pay off your student loan debt due to poor financial condition, you should try to pay it off quickly. This will enable you to pay less interest rate on your student loan debt. You may use your savings or look for a part-time job to boost your income and reduce your student loan debt as soon as possible.
By using the above stapes, you will be able to reduce your student loan debt soon and enjoy the pleasures of debt free life.