Many people apply and use federal student loans as grants. In other words, they feel that these loans do not require to be paid back because in some cases the Government has the option of waiving off part or full repayment. This is one reason why many formal financial institutions demand collateral of property or a co-signer before granting education loans. Many students find themselves enmeshed in huge debts on graduation day, which dampens their happiness.
It need not be so; with a little planning and discipline, you should be able to repay the loans with effortlessly. Here are some tips that you could use for this purpose:
1. Pay off the interest while studying – if you are paying for your college with the help of federal student loans it would be a good thing to find yourself a part-time job so you could start the repayment right away. In most cases, just paying off the interest would reduce the overall amount owed considerably. Most universities have intern programs, which use students who need to work part-time. Exhaust these opportunities before looking for outside jobs as such jobs would add to the weight of your CV when you apply for jobs post-graduation.
2. Apply for scholarships – do not rest on your laurels once you obtained your federal student loans. Look up for different sources for financing your studies that would reduce or eliminate the need to repay the amount used. Some examples are Government grants and scholarships. You can apply for both after your studies commence and if you are successful, you could use the funds to repay immediately the outstanding loans.
3. Save your money - Save as much as you can through budgeting and avoiding extraneous expenses. Use the money saved to repay the loan on monthly basis. You would be immensely relieved at the end of your studies when you find that the remaining outstanding amount has shrunk to a minuscule sum owing to your efforts as a student.
4. Look out for consolidation of federal student loans – contrary to popular belief, consolidation is not only for those who cannot pay their loans, but also for those who want to pay it effortlessly. Consolidation of loans allows you to bring the monthly installment within your ability of repayment, while keeping the lender happy. This is an excellent way to having your cake and eating it too.
It need not be so; with a little planning and discipline, you should be able to repay the loans with effortlessly. Here are some tips that you could use for this purpose:
1. Pay off the interest while studying – if you are paying for your college with the help of federal student loans it would be a good thing to find yourself a part-time job so you could start the repayment right away. In most cases, just paying off the interest would reduce the overall amount owed considerably. Most universities have intern programs, which use students who need to work part-time. Exhaust these opportunities before looking for outside jobs as such jobs would add to the weight of your CV when you apply for jobs post-graduation.
2. Apply for scholarships – do not rest on your laurels once you obtained your federal student loans. Look up for different sources for financing your studies that would reduce or eliminate the need to repay the amount used. Some examples are Government grants and scholarships. You can apply for both after your studies commence and if you are successful, you could use the funds to repay immediately the outstanding loans.
3. Save your money - Save as much as you can through budgeting and avoiding extraneous expenses. Use the money saved to repay the loan on monthly basis. You would be immensely relieved at the end of your studies when you find that the remaining outstanding amount has shrunk to a minuscule sum owing to your efforts as a student.
4. Look out for consolidation of federal student loans – contrary to popular belief, consolidation is not only for those who cannot pay their loans, but also for those who want to pay it effortlessly. Consolidation of loans allows you to bring the monthly installment within your ability of repayment, while keeping the lender happy. This is an excellent way to having your cake and eating it too.
Posts
