In my experience, recent college graduates feel like they are up to their eyeballs in debt with student loans. It may be effective for these graduates to have a plan in place BEFORE you graduate to outline how you can manage and pay off your debt.
According to finaid.org, the amount of debt per student in 2010-11 was $27,000, which was up 54% from a decade earlier. Now keep in mind, college is an investment that improves your life through opportunities. The effectiveness is measured by your ability to land a job that may make you more financially and personally better. The Pew Research Center Analysis says that college graduates earn almost $650,000 more over their lifetime than those who only have high school diplomas.
There are many reasons why you should be weary of the debt. Failing to pay your loans may be costly. Not making a deadline for a payment of a loan may result in a late fee and missing one loan status could potentially put a loan in delinquent status. Also, after nine months the borrower may be considered in default and the entire amount of the loan might have to be paid off immediately. Trust me, you do not want to be in this situation. In order to increase the propensity of you paying your loans off it might be effective to reach out to a financial advisor for advice. Listed below are some tips that will help you develop your plan to pay off your student loans.
1. Find out what type of loans you have currently.
If you currently have federal loans, you can access the information on your loans at www.nslds.ed.gov. This site may help you determine the balances you have and what payments you may need to make. If you have private loans, you may want to contact your private lender directly in order to receive information on your loan balances, payments and interest rates placed on your loans.
2. Determine what options are open to you that will help during your repayment.
The repayment options may vary based on how much you owe, the type of loan and how long the repayment period you requested is. Contacting a Florida financial advisor may help you determine what options you should choose in order to pay your loans off in an effective manner.
3. Research your rate reduction options.
If you are not aware of your rate reduction options, a financial advisor may be the go to professional to inform you of how you can reduce your interest rates. Sometimes there may be a rate reduction of .25% if you sign up for electronic debiting. There may be many tools you can utilize to reduce your loan’s interest rates that you may not be aware of. A financial advisor may be able to increase your awareness of these tools to streamline this process for you.
For me, college was a wonderful experience and I believe that college should not be burdened by stress due to college loans. If you are a recent college graduate it may be in your best interest to develop a plan before you graduate to pay off your loans. Contacting a financial advisor may also be another effective resource for you to utilize.