Don’t worry too much, you are given a grace period before you start the repayment program. Here is the advice I usually give to new grads to help them repay their student loans.
1. Learn about the loan repayment rules and when the grace period ends
A grace period is the time you have after graduation before you start repaying your student loan.
The standard grace period is always 6 months. To be on the safe side, ensure you check the date the first payment will be due.
2. Make the student loan payments yourself
When you practice making payments yourself, you will be in a better position to choose a better loan repayment strategy that will suit your budget.
Avoid making huge payments. These will make the loan repayment faster but they will have a negative effect on your emergency saving accounts.
Before choosing your loan repayment plan, take into consideration your savings, expenditure and emergency amounts. Ensure you strike a balance between all these accounts.
3. Process your income-related paper work as early as possible
Sometimes a proof of income is needed for specific repayment plans.
Don’t wait, submit the needed details as soon as possible. Why wait until you get your next job while your payment is based on your current earnings? If you submit the documents later than needed, you may find your self having to pay through the standard ten year plan.
Ensure that you respond promptly to all communication from your student loan service provider. Check a month prior to your first scheduled repayment month to ensure that your paper work was processed.
4. Understand your repayment plan change options and payment breaks
Federal student loans have flexible repayment conditions. Unlike other type of personal loans, you have an option to postpone the payment if you are unable to make the payment.
But you should be very careful before you decide to take a break. Know your options and make sure the decision is the best for you. You can seek advice from your servicer so that you can make an informed decision.
Making a student loan repayment should not be a stressful affair. Most loan repayment programs are flexible; all you need is careful planning.
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