A student loan is a great assistance for you to get your college education.Once you finish your schooling, it is your responsibility to repay your debt.This is very important because non-payment would mean serious consequences that may affect your credibility.It is necessary for you to take care of your credit score because it is your primary key to access future loans as the need for one may arise.In case that you have multiple loans, you may refinance so you can get a better deal or you may also resort to the different student debt consolidation options.
As a responsible borrower, it would be a lot helpful if you plan ahead.Find out your options and make a plan.This will allow yourself to have ample time to save for the money that you need to make the payments.Do not wait until the last minute before you take a step.
Here are the different repayment options for your student loans:
This is the default repayment option if you do not request for another type.You will be given ten years to pay your student loan off, and the mandated amount of monthly payment is at least $50.If you opt for a higher cap on payment then the quicker you can settle the total amount of your debt that means lower interest that you need to pay.
The repayment amount will be determined depending on your monthly income and the size of your family.It is usually 15 percent of the money that you are making and adjustments may be made yearly.One great advantage of this option is, if you make prompt payment for 25 years, there is a high chance that your student loan will be qualified for forgiveness.Or, if you work in the public sector for at least ten years, you may file an application for your student loan to be discharged.
If you can not afford the standard option, this plan will allow you make low payments that go higher every after two years.This will give you more time to leverage your income until you gain the capacity to pay more.
This plan gives you up to 25 years to settle the total balance of your debt.You may set a fixed repayment amount that can be increased as time goes by just like the graduated repayment option.