Manage Your Student Loan Debt Better in 2015

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It is usually seen that most of the students fail to manage their student loan debts efficiently after their graduation. The reason is quite simple. Most of the students spend their earnings on comfort and luxuries instead of repaying their student loan debt. It has become comparatively easy to acquire student loans. However, each one of us should keep in mind the fact that repaying loans are not easy as borrowing it. This is why there arises the need of a proper strategy when it comes to managing your loans. It is desirable to formulate these strategies while you are still in college instead of waiting until you get a good job. If you are one of this kind, here are some easy tips for you to manage your student loan debt better:

1) Go for financial counselling

It is better to go for a financial counselling session before signing the loan agreement papers to the lender. The more knowledge you have about the borrowing and repayment, the better you will be prepared for paying it back.

2) Set up automatic payments

You will never end up missing a payment if you set up automatic payments. Some of the lenders also offer discounts on the interest rate if you do so.

3) Calculate your debt

Once you complete your college education and when it is time to start repaying your debts, calculate how much money you have to pay every month. Keep aside the loan amount without fail even if you have to cut out certain luxuries in order to do this.

4) Look for other options

If you find the minimum loan amount to be repaid is not affordable, you can also look for another repayment plan such as a consolidation plan.

5) Set bi-weekly payments 

Pay your loan debt every other weak instead of adding it to the month end. This helps to cut your loan debts faster.

6) Student loan consolidation 

Student loan debt consolidation will be effective only if you owe several lenders. Debt consolidation ensures that you repay loans at cheaper rates and this option is effective if you have student federal loans. Making your payment automated will help you because you don’t have to remember the dates of repayment. You should only consider this option if your debt amount exceeds $10,000 or if the interest rate is higher than the current rate in the market. You should never combine government loan and private loans at any cost, otherwise you will not be able to claim any federal benefits like subsidized rates or deferment.

7) Consider refinancing

In case of student loans, you will always want to get the lowest interest rates possible. This will reduce your total loan payment and also the monthly payment. The best ways to save money in terms of student loans are to refinance your loans at a low interest rate. Refinancing is an option when you have an increased income or a better credit. The lower the new interest rate, the more you can save on interest.

The repayment term for your loan depends on the amount you have taken as a loan from the lender. If you are not financially responsible, it can even take more than 30 years to close the loan. So it is important to be responsible for the amount you have borrowed and to clear off the debt amount at the shortest time possible. If you clear your debt sooner, your interest rate will definitely go low. Finding out a lender who gives you favorable interest rates and better terms and conditions is not really easy. So before choosing a lender, do your own research by searching online and asking your friends and neighbors.


Author Bio: The author is an established freelance writer who is currently working for several websites that deals with finance, insurance, car dealership and travel. She has been working in the industry for the last 5 years. She is also a writer at essaypro.com.

7 Vital Tips that Can Help College-going Students in Managing Their Finances Better

Students are the future bright citizens of any country. Each year, new bright students join college and they hardly know how to manage their personal finances. If you ask them about summer camps or what fun they had during their summer, you’d get beautiful answers, which would delight you, but little do they know about their tuition fees or the text book costs. They have very rough knowledge of other expenses like electricity, phone charges, insurance, grocery, and monthly rentals too. They know their test scores, and semester marks, but they do not understand how to save money and its importance! But, when these bright students are trained, they can easily become masters in managing their finances too.

So, here are 7 resourceful tips that can help college-going students in to managing their personal finances better.

Money is Your Personal Responsibility

The first and the foremost thing that a student needs to remember is that he/she is the sole owner of the money, and it’s their responsibility to handle it carefully, rather than giving the responsibility of managing money to someone else. When students are dependent on parents, they have to know the complete expenses borne by them, and where the scholarship amount goes to.

Keep Some Money for Emergencies

Many students do not worry about their future; it’s important to set aside some money for emergencies like household expenses, sudden flight ticket to home, and medical expenses. Saving money always helps at any stage of life; initially, one can start by saving a small amount, and later on, increase it as and when possible.

Tracking the Money Flow

You need to keep a record of the expenses by writing or any online money management tool. This will help you to limit the expenses and manage your own money. Using debit card is easier and also helps you in managing your money. By tracking your money, you can save more money, which would be required for your post-graduation, and clearing the education loan, if any.

Limit Your Leisure Expenses

Try spending the least amount on entertainment. There would be many activities at your college, which would be informative and filled with fun. College is the most entertaining place since you are with your friends all the time. Instead of eating out at any restaurant, eat at your college using a meal card.

Old Books Instead Of New

New books would cost you more than old ones. Try buying books of your seniors at college or second hand books. College books are very expensive. Sometimes, ordering books online would be cheaper. So, make use of such opportunities. Used books sometimes would be in a good condition like new one.

Try Looking for Money

Money to students is available in plenty of forms; the only thing is that they have to look out for it. There are lots of discounts and scholarships available for students, and they can even do part-time jobs to generate additional money to cover up for their personal expenses.

Be Particular in Money Matters

Do not trust everyone in money matters, be it your well-wishers, friends, class mates or even sales person because money plays a vital part in everyone’s life.

Try to Ask

Every individual is in learning phase. Do not hesitate to ask for help. You can start with parents or may be the banker who can help you with money or how you make use of the opportunity. They can also help you in managing your money better.

Follow these tips and learn to manage your personal finances more efficiently.

Sherry is an investment banker. She is currently interested in trading of annuities that is similar to those handled by JG Wentworth. She is researching stuffs about it and learning them as she wants to expand the portfolio that she can offer to her clients. Follow her on Twitter @SherryRRosen