Clicky

LATEST
The Best Car Research Websites US Cities With the Fastest Rising Property Values Online Scams to Watch Out for in 2015 The Most Expensive Divorces in History What are the Poorest Cities in America? The Best Home Mortgage Loan Websites The Best Crowd Funding Websites The Best Mobile Apps For Your Personal Finances Does Shopping at Costco Really Save You Money? Practical Tips to Save Money on Gas Can Coinstar Turn Your Loose Change Into Big Cash? How To Resolve Paypal Disputes Are You Losing To Hidden Cell Phone Fees? Tax Deductions You May Not Know About How Much Money Will You Need In Retirment? How Much Life Insurance Is Enough? Are You A Victim Of Hidden Bank Fees? The Right Way To Ask For A Raise Which DIY Tax Program Is Right For You? Banks Giving New Accounts Great Deals In 2015 How To Deal With Debt Collectors High Paying Jobs With Labor Shortages In 2015 3 Tips to Save Money on Your Next Car Loan 5 Tips to Save Money on Health Insurance Should You Consolidate Credit Card Debt? Do You Have Unclaimed Property? Tips On Applying For A Small Business Loan What Is A Vantage Score And Why Is It Important? What Is A FICO Score And Why Is It Important? Tips On Creating An Emergency Fund Are Opening Store Credit Cards A Good Financial Decision? Tips To Help You Repair Your Bad Credit Is A Debt Consolidation Loan Right For You? Tips To Manage Student Loan Debt Tips On Finding The Best Deals On Cyber Monday Tips On Finding The Best Deals On Black Friday How To Save Money On Holiday Travel What Is Payoneer? What Is Apple Pay? What Is Escrow.com? What Is Neteller? What Is Skrill? What Is Amazon Payments? What Is Google Wallet? What Is Square? What Is An IRA And Should I Invest In Them? What Is A Mutual Fund And Should I Invest In Them? What Is A 401k And Should I Invest In Them? What Are Stock Options And Should I Invest In Them? Are You Properly Planning For Your Retirement? What’s The Difference Between PayPal vs. Amazon Payments? What’s The Difference Between PayPal vs. Western Union? What’s The Difference between PayPal vs. Google Wallet? What’s The Difference Between PayPal vs. Square? What’s The Difference Between A Wire Transfer vs. Western Union? What’s The Difference Between A Wire Transfer vs. PayPal? What’s The Difference Between A Wire Transfer vs. Bank Transfer? What Are The Best Places To Find Coupons Online? Can Owning A Hybrid/Electric Car Save You Money? Are Municipal Bonds The Right Investment For You? What Are The 5 Best US States To Start A Small Business? What Are The 5 Best US States Currently For Job Openings? Should You Consider Opening A Swiss Bank Account? How To Choose The Right Life Insurance Policy For You Are Homes In Foreclosure Good Investments? What Should You Look For When Choosing A Stock Brokerage Firm? What Should You Look For In A Retirement IRA? When Is Filing For Bankruptcy The Right Choice? Credit Cards With The Best Perks And Rewards Programs What Should You Look for When Choosing the Right Bank? Should You Consider Investing in the Forex Market? Do You Need a Financial Adviser? What Is A Reverse Mortgage, And Should You Consider It? Simple Tips To Manage Your Credit Card Debt Should You Buy Or Lease Your Next Car? Are Short-Term Payday Loans Right For You? 5 Ways You Can Improve Your Credit Score Are Penny Stocks A Good Investment? What Are The Benefits Of Investing In Precious Metals? What Is A Dogecoin And Are They A Good Investment? What Should You Look For In A Credit Card? Are You Ready To Buy A Home? Tips To Avoid Identity Theft The Phishing Scam The Rental Listing Scam Are Wire Transfers Safe? What is a Wire Transfer? Are Bitcoins Safe to Use? What are Bitcoins? Is Paypal Safe? What is Paypal? The Lottery Scam The Nigerian Scam (419) Is Sending Money with Western Union Safe? Incredibly Easy Ways of Sending Money with Western Union Everything You Need to Know about Western Union Western Union VS MoneyGram: Which Should You Use When Sending a Money Transfer? A Closer Look at MoneyGram Where Can I Send a MoneyGram? The Dangers of Sending Money Online: 7 Very Popular Internet Scams

Moneygram

Tips To Manage Student Loan Debt

student loan debt
October 27th, 2014

In the US, it’s not altogether uncommon to graduate from college with a debt of more than $100,000. The stats are actually a bit worrisome. There are about 37 million people in the country with student loans to pay, and the debt totals more than a trillion dollars. About 70% of the graduating class of 2012 had student loans to pay, and the average debt is close to $30,000.

If you have student loans, here are some tips to help you pay for them:

Take advantage of loan forgiveness programs

If you have federal student loans to pay off, you may not have to pay the full amount if you take advantage of programs like the Public Service Loan Forgiveness program. This program forgives all your loans after you work in certain nonprofit or public service jobs and you make 10 years of qualifying payments. There are other forgiveness options if you’re a teacher or a nurse, or if you volunteer for the Peace Corps or the AmeriCorps.

Don’t consolidate your federal loans with your private loans

While there’s an ongoing debate as to the actual usefulness of debt consolidation (which combines your loans into a single debt for a single monthly payment and a fixed average interest rate), everyone agrees that you need to keep your federal loans separate from your private loans. That’s because federal loans come with an assortment of privileges which you would lose through consolidation, such as loan forgiveness programs and unemployment deferments.

Try to lower your principal if you can

Debt payments first cover late fees, then the interest, and then finally the principal. If you can afford to pay more than what’s required, then do so. Reducing the principal lowers what you’ll be paying in interest. Just make sure that you submit a written request that your additional payment amount is applied towards the principal. If you don’t, then the extra amount may be used for future interest payments instead.

Prioritize your most expensive loans

If you’re trying to pay off a loan ahead of schedule, choose the loans with the highest interest rates. That almost always means you need to pay off your private loans first before your federal loans.

Communicate with lenders if you are having repayment troubles.

Payments can be suspended or reduced with federal loans. Sometimes even private lenders can accommodate your financial situation with reduced payments.

What you don’t want to happen is to default on your student loans. If you don’t pay for your federal loans for 9 months, the consequences can be horrendous. The total amount of your debt increases considerably, your credit score is trashed, and the government can then seize your tax refunds and garnish your wages. For private loans, the rules are even stricter and the co-signatory for your loan may get into trouble as well.

If you’re having trouble, the repayment schedule can be stretched out for lower monthly payments, and these payments may even be capped to 15% of your income. This can increase the total amount you have to pay for interest, but at least it saves you from defaulting.


This author has no description available.

Browse Our Website

Latest From The Money Blog

The Best Car Research Websites

The Best Car Research Websites

Instead of going to a dealership for a new car or checking various used car sellers, you can now fin[...]
US Cities With the Fastest Rising Property Values

US Cities With the Fastest Rising Property Values

Smart investors know that buying property in a thriving city is a good idea. But the prices of house[...]
Online Scams to Watch Out for in 2015

Online Scams to Watch Out for in 2015

“There’s a sucker born every minute” was Barnum’s perspective on life and business and he was right.[...]
The Most Expensive Divorces in History

The Most Expensive Divorces in History

A divorce is a relatively simple legal procedure but if it is between a couple with a net worth mill[...]
What are the Poorest Cities in America?

What are the Poorest Cities in America?

Many cities in the U.S. have never really recovered from the debt carnage that was unleashed on them[...]


https://suretrader.com

All Money Sending Tips Articles