Struggling With Your Student Loan? Here’s How to Make it Easier
Feeling swamped by student debt is, unfortunately, a reality for many Americans. You wanted to get an education, get a decent job, and live the good life, right? But life doesn’t always go according to plan – unexpected hiccups can come along and make paying your student loan seem unbearable. But don’t stress too much! There are ways to make your repayments a lot more manageable and we’re here to tell you how.
A Pause in Payment: Deferment or Forbearance
Did you know that pretty much all lenders actually want to help you? They’re at their happiest when you’re on track with your payments. To make this happen, they often offer support services like deferment and forbearance.
Deferment means you get to pause your payments for a while, without any downside—it’s a popular choice for many borrowers! Though, there’s another option, known as forbearance. This is a little tricky, as your loan’s interest keeps piling up while you’re taking a break, so use caution if you choose this route.
An Easier Repayment Plan
Graduation day comes and goes, and with your degree in hand, you’re ready to make some money : but it’s not always that straightforward. Many graduates find themselves drowning in student debt. But here’s the good news: you can talk to your loan handler about switching to an ‘income-driven repayment plan’.
This plan tailors your monthly payments to better suit your income—making them a bit less of a burden. There are actually four different types of these plans up for grabs:
1. Pay as you earn
2. Income-contingent
3. Revised pay as you earn
4. Income-based
Each of these can help make paying off your debt far more convenient.
Manage Your Money Wisely
This might seem obvious, but managing your money sensibly is crucial when you’re repaying a student loan. Many people end up defaulting on their payments because they didn’t plan their expenses well. So, once you’ve finished school, get a job as quickly as you can and start repaying the loan.
Keep a close eye on your income and expenses – if you really can’t afford that sparkling new TV, don’t buy it. Always keep the larger goal – to escape the dreaded default – in sight.