Ideally, student loan payment plans should start before students sign their first promissory note. But there are some instances that getting student loans is what lead the students to be buried deep in debt. This is common among those who fail to repay their debts or those who escape from their obligations.
Just as you are making a commitment to your career by investing time and money in higher education, it is important that you also make a commitment to your financial future by effectively managing your student loans from the beginning.
The following tips may help you handle your student loan debt effectively and repay the loans successfully.
Student Loan Payment Period
Student loan default usually happens when you fail to pay back the loan as agreed on the terms of your promissory note. The promissory note for the loans must then be referred before you leave school so that you know what your rights and responsibilities are in repayment.
As you enter the repayment period make sure you send your education loan payments when due every month. Simply make your payments on time for the full monthly payment amount or more. Do this regardless of whether you receive a bill.
Also, keep your school or lender informed of your whereabouts. Contact them immediately if you change your name or address and have questions about billing statements. Inform them promptly about any changes that may affect the repayment of your student loan.
Tips to Avoid Defaulted Student Loans
There are several ways that you can make to prevent student loan default. Here are the possible ways that you can consider:
- Understand your repayment options. With some available student loan payment options, chances are you can lower the total cost of the loan by making a high monthly payment.
- If you meet certain financial difficulties, consider applying for a deferment or forbearance on your loans. Ask your lender about the available options while you are still making payments because you won’t be able to get a deferment or forbearance anymore after you default.
- If you are having trouble making your student loan repayments, try to contact your lender as they may be able to suggest an alternate repayment options for you.
- Consider consolidating all of your educational loans into one loan as this gives you the chance to send your payments to just one lender. With a debt consolidation loan you may be able to extend the term of your student loans and lower of your monthly payments.
- Keep all records related to your student loan payments. Back up copies of all your letters, canceled checks, promissory notes, disbursement notices, and other forms in a file folder. Read, note and understand all the correspondence you receive from your student loan lender and respond them promptly if asked to do so.