For a specific portion of the population who live and work by the academic calendar, the summer months are a much-desired time of rest and relaxation. For others, those school-time days are in the past, and the summer months are just business as usual. If you took out some form of student loan, it’s essential to keep an eye on the calendar to make sure you avoid extra fees or interest on what you owe.
The Student Loan
A large portion of the general population of North America has some form of student debt. It’s become such a problem for some former students that they’ve fled their home country to find peace from the stress of their student loan repayment.
If you aren’t interested in going on the lam and you are ready to finally do something about your student loan, there are many ways to take control of your finances. Just stop by some financial education resources to pick up tips for making smart day to day decisions with your money. In this article, we’ll outline the steps you need to take to prioritize and tackle your student debt repayments finally. Let’s begin.
Rank from High to Low Priority
If you haven’t yet, go through your student loan statements and find out how much each one is charging in interest. Consider how long you have to repay the loan and compare the amounts you must pay when prioritizing your loans. Your goal is to minimize the total amount of interest that you are obliged to pay.
To do so, you need to make your payments on time and regularly—a budgeting software or calendar app can help you stay in control of this. Late payments also have a negative impact on your credit rating, which could have lasting consequences on your ability to secure other loans, buy a car, or lease an apartment.
Is There Help?
Student loans are by no means an easy thing for someone to deal with. Especially during the vulnerable time of transitioning from being a student to a professional, making enough money to cover costs, save, and payback, your debt can be difficult.
If you haven’t already checked out the specific details of your loan, then take a look at the fine print on your last statement to get informed. You should also make the time to call a representative from your loan provider to ask questions and get advice on how you can prioritize paying off your loan. Ask about any support plans from your loan provider and look into government programs, too. You might find something that matches your needs!
Modify Your Lifestyle
It can be tough to accept financial lifestyle changes in the face of debt. To make extra payments and face your student loans head-on, you need to adopt an “every dollar counts” mentality. To put your financial freedom first, you could consider downgrading your car, selling items you don’t use often, or taking a roommate. It might not seem glamorous at first, but the changes you’ll see in your overall household costs will be well worth it.