Students are taught the ins and outs of applying for student loans, but are often never told how to manage these loans. Upon graduation, these students find themselves left wondering how to handle re-paying these loans.
Best Practices for Student Loan Management
There are a few things every former student should do to manage their student loans. However, they aren’t always common knowledge. Keep reading for key strategies every student loan holder should know.
Know Your Loans
A borrower that is familiar with all the details regarding their loans will be able to better manage them. Details like the balance, repayment status, and lender are all pertinent information. For a better look into specific loans, students should visit studentloans.gov. This will allow them to see the loan amount, repayment status, and lender.
Know When the Grace Period Ends
Grace periods typically end six to nine months after a student graduates. Depending on the type of loan they received, they may have more or less time in their grace period. It’s essential to know the dates that these grace periods end so that the first payment isn’t missed.
Get in Touch with the Lender
While some people end up canceling calls and ripping up letters from their lender, this isn’t the best way to manage one’s student loans. Instead of avoiding the situation, make it a point to get in touch with the lender as soon as possible. Lenders try to work with their borrowers, so they’ll generally be able to work out an individual repayment plan to accommodate specific situations.
In addition to staying in touch on a regular basis, it is important to keep contact information up to date with lenders. If an individual changes addresses, gets a new email, or switches phone numbers, lenders need to know as soon as possible. This will ensure that all pertinent information makes its way to the borrower in a timely manner.
Pick an Adequate Repayment Option
The standard repayment plan is the 10-year one. However, borrowers can alter this to suit their specific needs. When choosing a repayment plan, be sure to keep in mind the length of the plan, the amount of interest, and how much is expected each month.
Dealing with student loans after graduation isn’t always simple. Practice these four tips when working with lenders to manage student loans.
How to Best Manage Student Loans
