Photograph Courtesy Of Steven Depolo
One of the most difficult financial hurdles to overcome is catching up on your student loan payments after you have fallen behind on them. In today’s job market, many college graduates have found that it takes them much longer to find employment in their field than previous generations of graduates have experienced and some find themselves working for far less than they have planned. New students need to take these factors into account along with other information about the repayment of student loans that can affect their finances for years to come. Here are some things that every student should know about repaying student loans.
You Will Need To Manage Multiple Loans
Most college students graduate with multiple student loans that may each have different due dates, repayment terms, and interest rates. College students with limited means may take out several loans each year to ensure that they can pay their tuition and other associated college expenses. Once you begin repaying the loans, this can get confusing and easily spiral out of control. It is best to be prepared to manage multiple loans from the beginning, keeping each loan agreement and accompanying documentation filed in a central location in separate files or envelopes. This will make it easy for you to find the information you are looking for when you need it.
There Are Multiple Repayment Options Available
Different types of student loans have different repayment options associated with them and some of these options can make it easier for you to repay your loans without going broke. Many federal loans give students a six or nine month grace period after graduation before they are expected to begin repaying their loans. There are also income based repayment plans, lengthened loan terms and loan forgiveness options that can reduce the amount that you must pay each month. Be sure to examine all of your options carefully so you can make sure you are using the best option for your current financial situation.
Do you work in public service? If so, then you may be eligible for loan forgiveness. Thanks to the College Cost Reduction and Access Act of 2007, you might be able to have most of your financial burden lifted. Online universities like Sacred Heart allow you to take advantage of this plan, and even offer a number of degrees that lead to jobs in the public service field, like case management, nursing, as well as community outreach. Take a few moments to research the specific requirements. It can potentially save you tens of thousands, so it is well worth your time.
Don’t Be Afraid To Talk To Servicers
The biggest mistake that many students that fall behind on their student loans make is neglecting to talk to their loan servicer when they begin to encounter difficulties. Your loan servicer may be able to help you by letting you know what repayment options are available to you that could help you get back on track. Give the servicer listed on the loan documents a call and explain your situation to the representative and you may find that your payments can be made much more affordable or even put on hold until you are able to get back on your feet financially.