Student loans are equally important as any other loan. Failure to pay has major consequences.
- Student loan debt is emerging as a significant issue for young adults. Once your payment period begins, it's important to treat your student loan just as you would any other loan. Failure to pay has major consequences. Repayment plans have a lot of nuances. There are many options available. And some have limits or qualifications you must meet.
If you aren't the discipline type, a electronic payment in which your bank automatically and regularly deducts your payments from one of your accounts might help you. It can also reduce the overall amount of interest you pay. Sometimes, you can't make payments on your loan. But you have options.
You can change your repayment plan, request a deferment or forbearance on your payments, or change the size of your payments or the payback period. In some cases, cancellation is an option. But it comes with strict requirements. If you have a federal loan, you have several options for paying it back. If your loan was issued by your school, repayment options differ by school. So consult yours about options.
Repayment for private loans varies according to the lender. But in general, you should expect fewer repayment options. If you have several student loans, you might consider consolidating them into one loan for convenience and lower monthly payments over a longer term loan.
As a general rule, you can consolidate only once. So make sure you get the best deal you can. Under a consolidated loan, you will no longer be subject to a variety of different terms and repayment schedules. Private lenders also provide loans with higher interest rates than those of federal loans. Also, with private loans, you will likely not get the generous repayment options and the rights of deferment and cancellation. Stay financially fit, friends.