Done With College: How About Your Student Loans?
You’ve enjoyed the loan while in college! Now that you’re done with your education the next thing you have to think is how to pay back the loan. Often most students’ loans have a six months breather before graduates can start making their payments.
During this grace period, some graduates are desperately looking for jobs while others are looking for a job under their belt. This is the only grace period you might have on loan, and therefore you should make good use of this period.
However, time flies and within no time it will lapse, and it will be your payback time. Often, everyone wants to make his/her first payment, but that is rarely the case. Most of them miss due to many reasons that either happened or were not done during the grace period. But before the grace period lapses here are some of the things you should do.
Confirm that all your loans have a grace period
Some loans don’t have grace periods and it’s therefore important that you confirm it. Besides this, if you ever took a break before half time enrollment in any period chances are high that you may have partially or wholly used your grace period for some loans. So you better confirm and make the necessary arrangements before the amount earn high interests.
Confirm the payment plan your servicer has put you in to ensure you’re okay with it
Your loan servicer will typically have you on a standard plan. If you don’t confirm which repayment plan you’ve been placed in, you may end up paying high interests.
Sign up for auto debit before the first payment
By setting up auto debit before the end of your grace period improves your chances of getting the likely discount on the interest rates. It also ensures that your first payment is timely to avoid the penalty.
Remember that your interest will be capitalized when the grace period lapses. Therefore, any interest that has been sitting aside will be added to your balance, and this happens every time your status changes let say grace to repayment and so on.
However, if you had no breaks throughout your school life, interest amount may be a little bit higher. Fortunately, you can decide to pay off the interest owed before changing status to repayment status.
In overall, student loan debt has crippled many lives with the monthly payments but with a proper arrangement you can never go wrong in managing your student loan needs.
If you happen to have many loans, consider getting a debt consolidation. Why get a debt consolidation? This is because it will be easier for you to make payment to one lender compared to several. If you have to make payment to different lenders, you may miss out on some of the due dates. This will thus incur a lot more charges. Contact us if you are interested to do a debt consolidation 🙂 Feel free to submit a loan application to see if you qualify for a debt consolidation!