Paying back your student loan is not all that difficult provided you draw realistic payback plans and follow the same.
As per the information provided by CBS News, typically student loan is about $20,000. It may be somewhat higher for students who graduated very recently. Don’t just get bogged down by that amount in thousands of dollars! Thankfully, help is at hand for students who can’t comprehend the strategies, as there are programs designed to help them reduce that debt and finally pay of the entire amount.
1. At the outset you need find out the total debt that is to be paid back. For this, you’ll need to collect data from all the different sources, you had borrowed money from. You may also collect this information through the National Student Loan Data System. It is not unusual for previous students not to make payments against a particular loan just because they don’t seem to be aware of it.
2. Get in touch with all the loan companies that provided you different loans. Take care to understand when you have to start paying back and the due date by which the amount needs to be paid back every month. While you are at it, make sure to update the company about your contact information, enabling them to send the bills to you at the correct address.
3. Make an assessment of your present expenses. List the expenses that you can avoid, so that you are left with only the most essential expenses. It is fine to keep room for a bit of indulgence once in a while, but don’t overindulge. You’ll benefit by eliminating expense on items that you don’t need really. For instance, you may start preparing coffee of your own, rather than spending $4 for you cup of morning coffee. The money you save can go to neutralize your debt to some extent.
4. Get all your loans consolidated into one loan. This allows you to make just one payment every month, rather than paying separately to different lenders. You’ll find many companies willing to consolidate your loan against a nominal fee.
5. There are quite a few government plans that help you to payback your loans. Apply for an appropriate program. There are many salary based payment plans from the government. Under certain conditions the loan may be waived off. Usual time limit for repayment plans is ten years, though there are programs wherein you can get further extension of time.