Finding a job, moving in an apartment and paying back student loans are the biggest concerns of a new graduate and it may drag on over the years of his/ her life. Alas, life after college is not as good as you may have hoped it would be. You have bid your goodbyes to nasty, inconsiderate professors, annoying roommates and heavy pointless books. Amidst the farewells, you will soon have to deal with nastier, heartless, cutthroat bosses, irresponsible landlords and piles of bank statements for your student loan payments. Indeed, the world is a cunning, unfriendly place. And soon you have to face the music of paying back student loans.
Loan payment is an inevitable truth, paying back is not a choice, it’s your obligation. So, unless you are ready to face more problematic consequences, you have to pay back. Since, you’re just starting adjusting with the big changes happening round you, you may find all these harsh truths overwhelming. Be quick about it and pull yourself together. It is your new challenge. And to help you along the way, here are some tips:
1. Get the record straight. The first step that you have to do is to calculate. Manage your finances, which include your cash inflow and outflow, properly by computing and recording starting with your debt. Think how much and how long. That is the amount you have to pay monthly and term or the number of years you have to pay for it. The how much and how long answers will depend on the repayment scheme you choose.
2. Pay anyway. You have to face paying back student loans. If you are unable to pay, you have different options to choose from. You can change your repayment scheme, ask for deferment or delay the payment with authorization of course, or choose forbearance to opt out of paying temporarily.
• Adjust or change repayment option. This is very simple to do, you can either ask for the term to be stretched so the monthly payment is lower but interest is higher over time or you can have a shorter term, higher monthly payment but lower interest.
• Delay the payment. You can request to temporarily stop paying the monthly payment due but this is for special cases only. When you file for a request, your case will still be evaluated to determine whether you are eligible for this option.
• Forbearance. This is an option you can take if you are not approved for deferment and unable to pay yet, you can make smaller payments instead.
3. Join the public service. The government grants loan forgiveness in some cases including debtors who are serving in a public service job either full time or part time. Other options are to join organizations such as AmeriCorps or Teach for America.
The most important thing to keep in mind is paying back student loans is necessary. Avoiding this reality may lead to default which will hurt your credit history, which will prohibit you from borrowing again and the cycle continues.