Guide to Paying Back Your Student Loans
Tuesday, March 5, 2013
- March 5, 2013 - Paying back your student loans doesn’t have to be a headache. With proper planning and budgeting, you can take care of your loan obligations with minimal stress.
Before you begin college, determine the amount of money that you will need to cover your tuition, books and housing expenses and only take out that amount. Research the different types of funding available. Once you determine the best type of funding suited for your needs, schedule a time to talk to a financial advisor
to review interest rates, student loan cycle, the Promissory note, and other confusing language so you understand your responsibilities.
While you’re in school, develop a budget
to keep track of all expenses and prevent overspending. Whenever possible, pay with cash and use your student discount to save money. Try to avoid using ATM machines or credit cards with fees and high interest rates. If you work while you’re in school, make payments on your loans to pay down interest. This will help lessen the burden after graduation.
Once your student loan grace period has lapsed after graduation, set up a designated bank account for loan funds and have your payment set to automatically be withdrawn every month. Develop a monthly budget to ensure you have enough income to pay off your loans.
Other ways of staying on track with your finances is to avoid excessive spending and shopping. If possible, work additional hours or take on part-time work
to supplement your income until your loans are paid off. Simply paying an additional $100.00 per month can substantially shorten the amount of time it takes to pay off your student loans. Paying back your loans should be your first priority, and with the right planning, you can accomplish your goals quickly.
For more information on how Reeves College can help, fill out the form to your right.