It is rather tough to deal with student loan debt, given the way it is ballooning out of control. Being a student, you must have been acclimatised with the student loan debt crisis that the nation is going through. Americans are recorded to owe a staggering $1.4 trillion in the form of student loan debt and this debt is more than all the car loan and credit card debt combined. 8 among 10 college students left colleges in 2017 with an average of $38,176 as student loan debt. In fact, as per reports from Federal Reserve Board Survey of Consumer Finances, around 20% borrowers owe more than $50,000.
There are many students for whom it is necessary to take out student loans as they don’t have the financial capability of funding their college and high school life. Whichever may be the cause, student loan debt is leaving the graduates in a state of mess and are forcing them drown in debt. What are the solutions? Is it possible to seek help of Northcash loans or other companies and trigger off your debt? Here are few suggestions from the experts.
Advice #1: Leverage the grace period of your loan
Based on the type of loan you have, your lender might offer you a grace period post graduation where you don’t require making any kinds of payments for the loan. During this time, avert the option of ignoring your debt. In case you’re blessed with the grace period, this is the right time to get a clear comprehension of the loans, set a definite game plan and then begin making payments.
Advice #2: Get to know your loans better
Even though you have crossed your grace period long back, the first step in dealing with student loans is to understand what kind of a loan you’re dealing with. You will find it easier to turn off your brain, continue with the minimum monthly installments and not give it any second thought. However, if you wish to make an impact, you should know the way in which the loan works.
Advice #3: Select the best plan for repayment
You could always have the option of selecting a better plan for payment like the Income Based Repayment Plan or the Pay as you Earn repayment plan. Such plans give you the discretion of making affordable monthly payments based on the income that you make in a month. You can also seek help of student loan consolidation in case you have difficulty in tracking your multiple loans.
Advice #4: Stick to a strict budget
Once you’re sure about the monthly payments that you have to make, you should instantly create a budget for the entire month. While devising the budget, trim anything that you can so that you could put more money towards the debt. Find out new ways of saving money.
So, if you don’t want to be caught within the trap of student loan debt which keeps soaring out of control with every passing day, make sure you follow the above mentioned advices shared by financial experts.