You are probably one of the many students who have taken a student loan. And if you are struggling to keep up with your payments, there are some steps that you can take to manage your loan payments properly.
Obtain as Much Information as you can about your Loan and your Lender
First, you have to know the total amount you owe so you can proceed with looking at your payments every month. In case you have not got your first bill yet, consider using a student loan payment calculator to give an idea of how much you must pay. However, for guaranteed figures, it is best to call your lender.
Set a Budget
You can incorporate a budget to your student loan payment to make sure that you have money readily available for your monthly payment. Think about using budget planners like online tools or spreadsheets. As you decide the budget planner to use, consider the amount of time you wish to dedicate putting in the figures and the specific system that works for you.
Take Note of Due Dates
You can request your student loan payments to be due on the same date. This ensures that you won’t miss a due date because you forgot. For example, you can request the due date to be set on payday. In case such request cannot be granted, set aside an hour every week on Tuesday or Friday to pay your bills. Just make sure you will really sit down to take care of your mail and pay your bills that are due during the upcoming week.
If you want to avoid missing a due date, ensure you use your planner or calendar so you get lots of reminders. You will find this quite helpful if you have to gather verification documents which might take more time.
Take Advantage of the Options your Bank Can Offer
You can choose automatic billing to make sure that your student loans are taken care of on time. Just ensure you have cash available in your account at all times. Also, you can set up a different checking account for your loans or a direct deposit which automatically splits up your paycheck and puts the specific amount for your student loan payment into your designated account.
Think about Student Loan Consolidation or Refinancing
If all student loan management approaches have been tried and don’t seem to work for you, it could be best to consider refinancing or consolidating your student loans. Loan consolidation refers to the combination of all loans into one with an interest rate and a monthly payment. Although student loan consolidation does not save you money, it helps you manage several loans. Apart from consolidating your loans into one, refinancing may lower your interest rate and your payment term’s length. Over time, this saves you lots of money.
In order to effectively manage your student loans, make sure you organize them. Organization is particularly important if you are paying more than one lender. It is imperative to learn how much you owe on every loan and establish your own organizational system. Being able to manage your student loans properly ensures that you don’t have to deal with late-payment fees. Also, this helps you come up with a payment plan which works for your specific situation.