The Smart Guide to Paying Back Student Loans
Now that you’re done with school, you have a great future to look forward to. Education is a valuable asset, but it’s one that often comes with student loan debt. Here are some ways to be smart about how you handle that debt now so that you can reap the rewards in the future.
Set Up a Budget
It sounds simple because it is. Knowing how much you have coming in and how much needs to go out is job number one. Many banks have apps that will keep track of this for you, or you can make a spreadsheet at home. Setting up a budget is the first and most crucial step to paying back student loans.
It is too easy to forget about little amounts seem insignificant, but they also add up. Once you get track of your money, you can see what you can cut back or even cut out altogether. You may discover that have to give up things that you once considered necessities but in the perspective of the bigger picture, seem not so necessary now.
Consider the Future
If you are still on the hunt for a job, there is something to consider when it comes who your employer will be. Qualifying public service and certain non-profit employees can take advantage of the Public Service Loan Forgiveness (PSLF) program. This was signed into law by the US government in 2007, as part of the College Cost Reduction and Access Act.
Borrowers may be eligible but only after at least ten years of paying back student loans. Contact us for a free assessment and more information about the PSLF. Our simple to use website will clarify the process, which can be complicated with all the eligibility requirements.
Give Your Loan Payments a Raise When You Do
You worked hard, and now you’ve gotten a raise – nicely done. Put that money to its best use and divert it, or at least most of it, to higher interest loans. Paying back higher interest student loans will results in less interest in the long run, saving you money.
The same goes for other sources of freed up money, for example, when you pay off the balance from a credit card. Put that toward the principal balance of your student loan. Be careful when considering debt consolidation, as it may cause you to be no longer eligible for PSLF relief. It’s best to consult with experts who can explain the process. Call us, and we can get you connected.
Help is Just a Click Away
The underlying theme is to be proactive in paying back student loans. If you think you might be interested in learning more about the PSLF program, contact us, and we will help you make sense of your options and get you in touch with the right experts.