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Tips to Get Started to Pay Back Your Student Loan on Time

November 17, 2015

When the payback time soon approaches student’s life, they start feeling they have been indebted for years. Before completion of their graduation years, they start getting enrolled in part-time jobs and projects, which allow them the flexibility and convenience to make some extra bucks.

However, learn and earn is not something achievable with pressures of assignments and projects, during the last years of your graduation. Payment of loans is also the next most important step after immediate completion of your studies. This requires students to be mentally prepared with a systematic plan for repayment without taxing themselves.

With recent educational loan boom supported by many banks, the debt has almost tripled in numbers. Many students perceive this debt with added interest as a burden, which they soon need to get rid off, while for some others loans not just help fund their studies, but they are smartly able to make most of their learning to contribute towards career development.

These smart talents quickly land jobs through campus placements and feel less burdened by the pressures to pay back student loans on time. Hence repayment advice will help students to plan on how to meet the dues and take so much pain away of their lives to allow them time to focus on their studies. Here are some tips:

  • Be sure and certain of the amount that is due. An online calculator should help calculate and estimate your monthly repayments. If the loans have been borrowed from government-owned financial institutions, then banks normally grant a year and more post graduation to help students repay loans conveniently without extra pressures, once they find a suitable job.

See: How Studying Abroad Can Help Advance Your Career?

  • Plan your budget. Once you are aware of the monthly outgoings, you can plan monthly repayments accordingly and figure out how to fit them best.
  • For prompt payments, set up an automatic debit. If you have found yourself a job post graduation and have carefully calculated your monthly outgoings, it is safe to set up an automatic debit on your bank account. This will help you payback promptly, by making sure you take the debt seriously.
  • Do keep track of the balance dues. As you keep a tab on the outgoings, it is also important to carefully read through the monthly statements and how much you owe. Interest rates if implied should also be cross-checked to avoid any extra late payment charges, if implied through errors.
  • Do sign up for reward programs, wherein some banks offer students cash-back and reward points for paying back dues in timely manner. You can make use of the reward points to make purchases when you wish to encash the same.
  • Try paying back more during certain months, if possible. If you could limit your monthly spends and save in bit extra to payback the loans, then probably this will help you get rid of the debt faster and cut the overall taxes if imposed.

Without careful planning on debt repayments, students are at times liable to bear the consequences with debts lingering long enough. Hence it is crucial to get started off with the repayments and plan right.

Also read: 5 Most Common Job Search Mistakes Fresh Graduates Should Avoid

Image credits: debtsuspension.com

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