Did you know that paying off your student’s loan sooner than usual is every students dream? It was even my dream. I am a student of the University of California who has qualified with masters in Economics and now I am going to tell you how to pay off your loans as sooner the better.
Paying off loans
When student apply for federal students loan, many of the students like me also feel that paying off their loans sooner is of top priority. There are however times when they may face a stressful condition, they are bankrupt due to some reasons, or they might face situations like loss of jobs, death of the bread earner in the family and medical emergencies. Paying of student loans in this case may actually feel like the last thing you are going to do. This is however not right, as you may end up giving more interest rate and a debt if not more.
Paying off student loans quicker
So how can you pay off your loans quicker? I would suggest a few options where you can pay off your loans faster without giving much stress on yourself.
- Avoid skipping your payments– Always try and pay your loan amount of time. Skipping one amount adds to the next amount and that automatically burdens your amount Talk to your bank, ask him for other options on reducing the interest rate or the forbearance
- Never consider the student loan forgiveness option- Many of you must be under the opinion that student loans can be forgiven if they cannot be repaid. This is however a myth. Student loans are never forgiven. The rate of interest however may be reduced in case of dire consequences. Loans need to be paid off in full amount.
- Ensure that you read the terms and conditions- Always ensure that you read the proper terms and conditions before applying for a student loan. I suggest you to read this point carefully, as, this is one of the main factors while applying for a loan as maximum problems arise out of this later on.
- Know about the various interest rates and term period– I would always suggest you to read the different documents regarding student’s loans, the amount of interest, the tenure, whether the rate of interest is floating or variable and more. This will help you to decide better on which student loan to apply for.
Student loan debt is a long-standing issue
Non-repayment of student loans is a long-standing issue and I have seen many of my friends suffering because of the same. Repayment of student loan is a crisis situation and thus I, as a student of economics would always suggest you to make your decisions wisely before opting for a student loan. Try and repay your loans as soon as possible. Try and opt for the option where you can give a little bit more money for a month. Force closure is one of the best options for a loan account as well.