Top 5 Tips For Managing That Student Loan

Top 5 Tips For Managing That Student Loan

On February 8,​ 2018,​ President Bush signed into law a​ budget reconciliation bill that will impact your student loans as​ a​ student and a​ graduate. the​ interest rate on​ any new student loans (Federal Stafford Loans) that you​ take out after July 1,​ 2018 will be fixed at​ 6.8%. Any student loans you​ have taken out prior to​ that date will remain at​ a​ variable rate.

The good news is​ that origination fees on​ student loans are scheduled to​ phase out over the​ next several years,​ which means fewer fees on​ your student loans. Additionally,​ if​ you​ will be pursuing a​ graduate degree,​ a​ new PLUS Loan initiative will allow graduate and professional students to​ take advantage of​ PLUS funds. This will enable you​ to​ cover your total cost of​ attendance with federally guaranteed,​ low-interest loans instead of​ Alternative Loans,​ which are typically more costly.

If you​ are nearing graduation,​ you​ are probably thinking about consolidating your student loans through the​ Federal Loan Consolidation Program to​ lower your monthly payments up to​ 50%. the​ tips provided below will help you​ to​ deal with questions you​ may have concerning graduation and how to​ handle your student loans.

The average new graduate will owe more than $220 in​ student loan payments each month. Even if​ you​ have not received your first student loan payment yet,​ you​ should consider that there are important deadlines approaching. you​ can save hundreds or​ thousands of​ dollars in​ interest by consolidating now because the​ interest rate on​ your student loans will increase in​ July.

Because your rate is​ currently variable and can increase to​ as​ high as​ 8.25%,​ it​ is​ strongly recommended that you​ lock in​ now while rates are still the​ 4th lowest in​ history (you can lock in​ as​ low as​ 4.5%*). as​ the​ pattern of​ rising interest rates continues,​ your rate AND monthly payment will likely go up if​ you​ do not consolidate before July 1st. How you​ manage your student loans can have a​ big impact on​ your financial future. Following these simple tips will make it​ easier.

Tip #1 - Don't let your interest rate go up. Student loan interest rates are variable - they change every July 1st. you​ can permanently lock in​ your interest rate by consolidating now.

Tip #2 - Use automatic payments. Most lenders offer a​ reduced interest rate when your student loan payments are automatically deducted from your checking or​ savings account. This can add up to​ big savings. Plus,​ you​ won't have to​ remember to​ write a​ check each month,​ and your loan payments will always be on​ time.

Tip #3 - Don't get behind on​ your payments. if​ you​ are having trouble making your student loan payments,​ you​ should immediately contact your loan servicer to​ find out if​ you​ are eligible for deferment or​ forbearance. Just as​ with any other loans,​ late student loan payments will negatively affect your credit.

Tip #4 - Choose the​ best payment option for you. Multiple payment options are available to​ student loan borrowers who consolidate. a​ payment plan that fits your current financial situation can help you​ keep up with your loans. And,​ you​ can switch plans when you​ need to.

Tip #5 - Get cash back from your student loans. a​ lender or​ servicer will often offer borrowers incentives to​ make their loan payments on​ time for a​ specified amount of​ time. For example,​ CLC® offers borrowers up to​ $2,​000 cash back after they make nine payments on​ time.* *

Top 5 Tips For Managing That Student Loan

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