Whether you like it or not, student loans are that thorn in your side that won’t leave you alone after you graduate. You need to find ways to make monthly repayments, or you may end up paying more later on, whether it’s through accrued interest, larger payments, or damaging your credit.
So how do students save money while still paying off their student loans as new grads? Here are a few tips:
Get organized so all of your payments are made on time.
Make your student loan payments on time! If you’re paying late, you may fall into delinquency or deferment. Neither are good; your credit score is negatively affected, you’re expected to make up your payments as soon as possible, and there are certain requirements you have to meet to get out of deferment. Not only that, some lenders impose a penalty on late payments. Save yourself the headache and any substantial late fees by either setting up a reminder for when your payments are due or set up automatic monthly payments.
Think about which is the right loan repayment plan for you.
Depending on how much in loans you took out and your monthly income, there are several options you can choose from. For some, an income-based repayment may be a good choice. For others, consolidation or refinancing may be a better option if they want to renegotiate their monthly payments or interest rates. Do your homework and explore your alternatives! Don’t be afraid to talk to your lender to choose a repayment plan that allows you to pay off your loans comfortably and save money in the meantime.
Use College Raptor’s new Student Loan Finder to discover personalized private loans. Compare lenders and interest rates to find a private loan option that works for you!