Understand Your Loans – Understand how repayment works. The repayment calculator and exit counselling (usually required upon graduation) are also extremely useful tools to help understand your loans.See if you qualify for income-based repayment, and understand the terms of your loans and what kind they are (federal, private, etc), to know your rights.
Pay Attention to Details in Paperwork – Understand fixed interest rates, terms of deferment and forbearance (your last resort), and learn how to budget your money. Find out how to deal with potential future problems in repayment.
Consolidate Your Loans – While daunting at first glance, consolidating your loans can help you lump everything into one giant ball and keep track of everything because it is all under one servicer. This can also extend your payback period and avoid overwhelming money confusion.
Emergency Fund – Always keep yourself afloat by saving money to keep you afloat for the next 3-6 months, just incase of an emergency. You never know if you’ll need it, and it’s better to be safe than sorry!
Make Payments While Still in School – Since the interest is already piling onto your loans while you’re in school, begin to pay off your debt while still in school to help lessen interest capitalization to help you save money.
Pay More Than Required Each Month – This is one of the best ways to pay your debt down as fast as possible. Additionally, if you’ve paid more back than you’ve needed, don’t pass for the next month. Keep paying back more than you need to, and continue to stay ahead of the game.
Tax Deductions – If you earn under $60,000 a year, you may be able to deduct up to $2,500 of loan interest from your taxes that you’ve paid in the past year! That can be a huge help! Learn more about the process in these deductions and consider using your tax return money to go towards your loans as well!
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