7 Tips to Manage Your Student Loans

Carly Benson | February 06, 2024

As a recent college graduate, you might feel anxious about repaying student loans. It can feel overwhelming to consider your debt and how long it will take to pay it off. However, there are steps you can do to properly manage your student loans and streamline the repayment process.

You'll find some tips on managing student loans in this article. From creating a budget to refinancing, we'll cover all you need to know to manage your student loan debt. And if you've been sued for debt, we'll discuss how you can settle the debt once and for all. So let's start now!

Use these tips to manage your student loans

Paying off student debt may seem daunting. Below are seven tips to help you manage your student loans and stay financially fit.

1. Set up a budget

The first step to managing your student debt effectively is creating a budget. You may keep track of your finances and outgoings with the use of a budget, ensuring that you don't spend more than you make. Here are some ideas to get your budget started:

• Include your wages, any freelance work you do, and any other occupations you have in a list of all the ways you earn money.
• List every expense you incur over the course of one month, including rent, utilities, groceries, entertainment, and student loan payments.
• To keep track of your expenditures and find areas where you may cut costs, use an app or calendar.
• Save a portion of your income for emergencies and unforeseen expenses.

Budgeting is one of the best ways to stay on top of your finances and manage loans, and starting early in life will help you lay a foundation of healthy financial habits that are sure to pay off in the future.

2. Research your repayment options

College alums can choose from a variety of debt repayment options, including extended repayment, regular repayment, and repayment depending on income. Every option has benefits and drawbacks, so it's crucial to do your research and choose the one that would work best for you. Keep in mind:

• The most common method of loan repayment is the standard one. You make set monthly payments over a ten-year term.
• Your monthly payments will vary if you make a certain amount of money and have a certain number of family members. Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), Income-Contingent Repayment (ICR), and Income-Based Payback are the four different forms of income-based payback schemes.
• Choosing extended repayment will allow you to spread out your loan payments over a maximum of 25 years. Although this can cut your monthly payments, the total cost of the loan in terms of interest will be higher.

3. Refinance your loan

Another strategy to manage your student loans well is to refinance your debt. You obtain a fresh loan from a private lender to pay off your previous debts when you refinance. The new loan may have a lower interest rate, which could result in cost savings for you throughout the term of the loan.

You should research the rates that various lenders are offering before refinancing. Consider the benefits and drawbacks of refinancing as well as the possibility that you could lose access to certain privileges and perks associated with federal loans.

4. Pay additional fees

You could pay more on your student loans if you have extra money each month. By doing this, you can pay off your debt more quickly and save money on interest. Here are a few suggestions for paying more:

• Set up recurring payments. Automatic payments are often possible with lenders, ensuring that you never miss a payment.
• Spend more than the least. Try to pay more each month than the required minimum if you can. Over time, even a small increase of $50 or $100 can have a significant impact.
• Use unanticipated funds: You might choose to apply all or a portion of any gifts, tax refunds, or bonuses you get to pay off your student loans.

5. Look into loan cancellation programs

For college grads who work in particular fields or fulfill other criteria, there are several programs that eliminate student loan debt. See whether you qualify for any of these programs since they may help you pay off your student loans more quickly or for less money. Here are some examples:

• After you have made 120 eligible monthly payments while working full-time for a qualifying employer, such as a government organization or non-profit organization, the outstanding balance on your federal loans will be forgiven under the Public Service Loan Forgiveness (PSLF) program.
• If you teach full-time for five consecutive academic years in a low-income school or educational service organization, you may be eligible for a program that will forgive up to $17,500 of your Direct or FFEL Subsidized and Unsubsidized Loans or Subsidized and Unsubsidized Federal Stafford Loans.
• Forgiveness under an income-driven repayment plan: The remaining balance of your loans is forgiven after 20 or 25 years of payments, but you will still be required to pay taxes on the forgiven amount.

6. Discuss options with your loan provider

In the event that you are experiencing difficulties paying your loan installments, don't be afraid to seek your lender for assistance. They might be able to provide you with options for deferment, forbearance, or other debt repayment options. It's crucial to communicate with your lender and let them know what is happening with your money.

7. Limit default

You run the risk of losing your job, getting sued, and having your earnings garnished if you don't pay back your student loans. Talk to your lender and consider your options if you're having problems paying your payments. The issue will only worsen if you don't make your loan payments.

Use your student loan money wisely

As a student, it's important to use your student loans wisely to avoid accruing unnecessary debt. While you may be tempted to use your loan funds for non-essential expenses like vacations or shopping sprees, it's important to prioritize your education-related expenses first—things like tuition, textbooks, and housing.

However, there are some education-related expenses that you may not have considered, such as hiring a professional essay writing service like samedaypapers to help you with your academic assignments. Writing services can help alleviate some of the stress and workload of being a student, allowing you to focus on other important tasks while still achieving academic success. Just be sure to budget accordingly and only use these writing papers for students services when necessary to avoid overspending your loan funds.

Key Takeaways

It can be challenging to manage your student loans, but creating a budget, investigating loan repayment options, refinancing, making extra payments, and learning about loan forgiveness programs are great ways to pay off your student debt and move on with your life.

Do everything in your power to avoid debt, and don't forget to talk to your lender if you're having difficulties making payments. If you have patience and persevere, you may settle your student loans and move on to a better financial future.

Settle your student debt with SoloSettle

If you’ve fallen behind on your student loan payments, there is a chance you’ll be contacted by debt collectors. If you ignore their calls, you might find yourself tangled up in a debt lawsuit. If you know the debt is valid, debt settlement may be a good option to help you get back on track.

Debt settlement involves working with creditors, lenders, and debt collectors to negotiate a lump-sum payment, and sometimes a payment plan, that is less than the original debt amount to satisfy the obligation once and for all.

SoloSettle, powered by SoloSuit, makes debt settlement simple. Our software helps you send and receive settlement offers until you reach an agreement with your creditor. SoloSettle also helps you manage your debt settlement agreement documentation and transfers your settlement payment so you can keep your financial information safe from sketchy debt collectors.

Watch the following video to learn more about how to settle a debt.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

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Being sued by a different debt collector? Were making guides on how to beat each one.

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