Got student loan debt? You’re not alone. But don’t let those loans become a burden. Here are some easy-to-follow tips to keep your student loans under control and reach financial freedom faster.
#1: Face the Facts
First things first: Be clear on how much you owe, what type of loans you have, and who your loan servicer is. There are online repayment calculators that can show you exactly how much interest you’ll pay based on your loan amount and interest rate. Knowledge is power!
#2: On-Time Payments are Key
Missing payments can seriously hurt your credit score and make things much harder down the road. If you’re having trouble keeping up, don’t hide! The Department of Education website has a repayment estimator tool to help you find a payment plan that works for you. Don’t hesitate to contact your loan servicer to discuss your options.
#3: Keep Your Lender in the Loop
Moving? Changing your phone number? Let your loan servicer know ASAP! Staying in touch ensures you don’t miss important updates about your loans.
#4: Explore Your Options
Many loans have a grace period where you don’t have to make payments right after graduation. You might also qualify for deferment (postponing payments) based on your financial situation, loan forgiveness if you work in public service, or qualify for an Income-Driven repayment plan. Consolidation, combining multiple loans into one payment, can simplify things.
#5: Free Help is Available
Beware of companies that charge upfront fees to help you manage your student loans. It’s illegal in some places! Your loan servicer is your best resource for navigating your repayment options, or visit Champion Empowerment Institute for beneficial free resources and information.
#6: Get Ahead (if you can)
Every little bit helps! Try to pay more than the minimum amount due whenever possible. Focus on paying off the loans with the highest interest rates first. Even a small amount extra each month can save you a ton of money in interest over time. Just make sure any extra payments are clearly directed toward the principal balance of your highest-interest loan.
#7: Credit Check-Up
Keeping an eye on your credit report is essential. Catching errors early can prevent damage to your credit score. Each year, you’re entitled to a free credit report from the three major credit bureaus.
Bonus Tip!
Don’t be afraid to contact your college’s financial aid office or Champion Empowerment Institute. They may have resources and programs to help you manage your student loan debt.
Remember, you’ve got this! By following these tips, you can take control of your student loans and achieve your financial goals.
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