Eastern International College Grads! You’re approaching that time that you must repay your student loan, so what better way to tackle this then by avoiding some mistakes from the start.
Avoid these common problems people face with student loans and have a plan to succesfully repay back your student loans:
1. Not figuring out how much you’ll need to pay each month
Know how much you will need to pay each month, create a budget. If you already have a budget make sure you add your monthly payment to it. Here is a link to a repayment estimator.
2. Choosing the wrong repayment plan
The repayment plan you choose is a major factor in determining how much your monthly student loan payment will be and how long it will take you to pay back your loans. The Department of Education offers several different repayment plans. Make sure you’re enrolled in a plan that you can afford. If you are having trouble paying your monthly bill, use the income base payment plan that is is provided. plans. If you have questions, need advice, or would like to switch your repayment plan, contact your loan servicer .
3. Not paying extra when you can
Did you know you can save money on your student loan in the long run if you pay extra when you can? If you are paying interest on your federal student loan, that interest accumulates each day.
An easy way to save money on your student loans is to pay more than what’s required whenever you can.
4. Missing payments
Contact your loan servicer if you feel like you cannot make your next payment or just cannot afford the next one, they can help or recommend better options, but don’t stop paying! Stopping payments can result in default, which negatively impacts your credit score, and may affect your ability to borrow for things like a car or a home.
5. Paying for student loan help
There are countless ads online from companies offering to help you manage your student loan debt…for a fee, of course. But, the U.S. Department of Education provides free student loan help through our servicers.
Your loan servicer is the company hired by the U.S. Department of Education to help you manage, understand, and pay back your loans. They are there to help guide you through the loan repayment process, answering any questions you have along the way.
Source: EIC grads and students this information came from : Federal Student Aid, an office of the U.S. Department of Education