How to pay back student loans
ACompletion of college is an ecstatic feeling. Students get a sense of relief and look forward to starting their life towards attaining their personal and professional goals in life. However, one often tends to forget the loans which were taken to complete their studies. So students start their professional life with the liability to repay their loans. It is always advisable to plan in advance so that one can easily pay off their loans. Read below to find ways to pay back your student loans.
Know your liabilities
It is best to use the 6-month grace period offered by the bank, to know what your liabilities are and draft a plan towards clearing the same. Repayment will start irrespective of the fact whether you get a job or not. Hence it is advisable to prepare for the worst. Once you have made your plan, you can focus your efforts towards getting a job for yourself.
Let's look at some of the other options for repayment of the student loan:
- If you succeed in getting a job, it is best to talk to your lender and sign an agreement for repayment through the electronic clearing System (ECS). This will ensure that your EMI for the loan is debited to the lender's account automatically, and you are not required to make a budget for the same.
- In case you had taken loans from both federal as well as private sources to fund your education, it is best to go for consolidation. Consolidation helps you in repayment with only one monthly installment. Loan repayment period can be extended from 10 to 30 years, and you have a reduced monthly payment by opting for consolidation.
- US Government offers loan waiver programs through public service.
- GI Bill offers up to $20,000 of waiver on student loans.
If you join High risk jobs like the Americorps or Teach for America you qualify for waivers up to $5000 per year of the loan debt.,
One should always remember that unlike car loans or mortgages which can be waived in cases of bankruptcy and can be transferred, student loans are to be paid by the students only. So if even if you are financially well off, it is advisable to pay off the student loan at the earliest.