These days college students are leaving school with more than just a diploma in tow. With their graduation also comes a string of IOU’s from numerous lenders looking forward to the time when these students can start to pay off their loans. In fact, a current report from the Wall Street Journal states that college loans today have topped credit card debts for under 25 years olds, and this has sparked interest and concerns from the government and general public alike. In addition, the average student loan has drastically increased from $18,000 to $ 24,000 dollars, while some students accumulate an astounding 6-digit student debt upon graduation.
Whether you have a certified or an uncertified student loan, the fact is that you will need to repay them once your grace period after graduation runs out. To help you work out a payment plan and secure a stable future, here are our three step rule to ensure that you are out of debt in no time.
Know Your Numbers
The first step to setting up a plan is to know a much you owe. Similar to how conscious you were of the admission prices when you were still a freshman, you should also be cognizant of the amounts you owe and from which company. Make a detailed account on how much you need to pay and from here deduce the monthly payment allotments you need to fund.
Know Your Due Dates
To make for a sound payment plan, you need to also map out when you need to start paying them. As a general rule, student loans starts to bill right after the end of your grace period. Be sure to label these dates on your calendars to ensure for prompt payments or otherwise suffer from penalties and a stained credit report. Also important is to ask your lender on their processing time to make sure that your payment checks in on time.
Budget your Money
As you start to earn your money, you should also start to hone your budgeting skills. It is essential for anyone who is in debt to evaluate their current finances and create a monthly budget to shoulder your living expenses plus your loan payments. Without a budget, you might find yourself overspending on a number of things and not having enough saved on the bank to cover your loan. In addition, you should also consistently monitor your finances to know when you might need to file for a reprieve if in case you fail to meet your financial obligations in certain times.
If you are unemployed the government will let you take extensions up to three years following your grace period.