You have a degree from college. Now what?
Along with starting a new job and a new life, you may also need to start paying back your student loans.
When a college student graduates, drops below half-time enrollment, or leaves school, he starts paying back his student loans. In some cases, they may not have to start making payments for a short time, like up to six months. No matter what, it's important to take charge of your education debt and set yourself up for a smooth repayment process. Martha Holler, a spokesperson for Sallie Mae, the largest company in the United States that helps people pay for college, says, "Managing your student loan repayment will help you build a good credit history, which will make it easier for you to get your next loan, whether it's for a car, a house, or more school."
Unlike other types of consumer debt, student loans often come with incentives like lower interest rates or account credits for on-time payments. This makes it even more important to get in the habit of making payments on time. Why not take advantage of these deals to save money and build your credit at the same time?
There are different ways to pay back your student loan. Holler tells graduates to think about a plan for paying back their loans that works with their income, lifestyle, and other debts. Students can also pay back their loans early if they can, and there is no penalty for doing so. There are a number of loan forgiveness programmes for people who go into certain careers or move to certain places. Find out what you need to know to see if you can get your loans paid off in full.
"There are many ways to get help with payments," says Holler. "If you're having trouble paying your bills, you should talk to your lender right away so you can use the options you have. The sooner you do something, the more options you'll have and the less likely it is that your short-term money problems will hurt you in the long run."
There are ways to pay back or put off payments for borrowers who are having trouble making their payments, especially for recent graduates.
