Student Loan Repayment Tips

Student Loan Repayment Tips



Student Loan Repayment Tips
USA Funds is​ headquartered in​ Indianapolis .​
It annually guarantees $9 billion in​ education loans in​ all fifty states .​
It is​ the​ guarantor for Alaska,​ Arizona,​ Hawaii,​ and the​ Pacific Islands,​ Indiana,​ Kansas,​ Mississippi,​ Nevada and Wyoming .​
USA Funds has a​ four step suggestion to​ repay the​ student loan .​
The USA Funds asks students to​ prepare themselves well in​ advance to​ repay their loans.
Students have a​ grace time of​ six months before their first loan payment is​ due .​
Students take loan from the​ Federal Family Education Loan Program .​
Carl C .​
Dalstrom USA Funds president and CEO says that a​ little planning and starting off on​ the​ right track makes loan repayment easy .​
The following four steps are suggested:
1. Find the​ right amount to​ be repaid .​
Students usually are not aware of​ the​ seriousness of​ a​ loan .​
a​ complete record has to​ be maintained .​
The lenders and the​ school do keep reminding the​ students about the​ loan .​
These papers have to​ be carefully filed .​
The right amount should be calculated .​
2. Find the​ right amount of​ the​ monthly installment to​ be repaid .​
To calculate the​ amount to​ be paid monthly,​ the​ annual starting salary should be divided with 12,​ then multiply the​ result with 0.08 and also by 0.01 .​
This will provide a​ maximum range for repayment .​
Graduates with a​ salary of​ $25,​000 can afford to​ pay a​ monthly loan payment of​ not more than $167 to​ $208.
3. Plan and devise a​ repayment strategy .​
Many online student loan calculators are available .​
The student can take the​ help of​ these calculators and find the​ amount to​ be repaid every month .​
The standard repayment plan is​ generally taken up by many students .​
In this the​ entire amount is​ divided into equal 10 monthly installments .​
Flexible repayment loans are also available .​
Sometimes multiple loans are joined into one single loan and the​ repayment period is​ extended .​
In this case the​ rate of​ interest is​ definitely lower but the​ total interest calculated is​ actually more .​
4. The students’ whereabouts should be known to​ the​ lender and the​ school .​
Students move away to​ another place where they are employed .​
The change of​ address should be notified to​ the​ lender and the​ school .​
This is​ to​ prevent the​ student –loan default .​
In the​ case of​ improper information,​ the​ notification of​ the​ lender does not reach the​ student concerned and this may lead to​ loan default.




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