7 Steps to Be Ready to Repay Your Personal Loans After College – Part 1
Usually, one of the major accomplishments for any family is to see when the time comes for a student to graduate from college. This, of course, represents the ending of a series of efforts on the part of parents, who have to repay personal loans they acquired to fund their children’s studies and also of the student themselves, who finally see all their work – reading, studying, and countless tests – come to an end.
However, many students also have to repay their student or personal loans after exiting school. For this, banks and other lenders offer students up to six months after graduation (or after they leave school), as a grace period for them to repay their personal loans. The problem here starts when former students start considering this period as a half-year vacation from caring about their personal loans, causing them to default on their debts, when in fact they should start planning how to take care of the payments for their personal loans.
What former students should do in this grace period is to start their planning for a solid and debt-free financial future, since there is no pressure for paying even one installment of their personal loans during these months.
Considering all that, here you have the first three our of seven steps to take during your grace period if you are a former college student thinking about starting your financial life with the right foot and all personal loans well taken care of.
1. Keep Records of All Your Personal Loans
Since student and personal loans can be taken almost on a yearly basis, you might have more than just one personal loan, and perhaps with them being from different financial. If this is your case, then you can contact the National Student Loan Data System, where you will find every single detail of your personal loans, including amounts, interest rates and terms, which can help you plan your personal loan repayments even better.
When it comes to private loans though, things can be a lot harder to track down, since there is no database for them. So in these cases you should try getting in contact with your school or with the lenders themselves for more details and, most of all, to know how exactly your personal loan monthly repayments will look like.
2. Get in Touch With Your Personal Loan Lender
While you might not be starting repaying your personal loan any minute now and for the next few months, you should start contacting all the lenders and financial institutions you have personal loans with. Once you do, make sure to update your contact information so you don’t miss any of your bills. And of course,make sure to ask about any aspect of your personal loans that you might not understand.
3. Start Budgeting
Before starting with any planning, make sure you first get the full grasp of what your actual budget will be. So start by map out all your possible income sources and all your current expenses making sure to include everything, like your salary, your rent, your food, your recreations and such. Take all of these into account and make sure you have enough money to repay your personal loan monthly installments. If for some reason you find out that you don’t, then get back to your lenders and re-negotiate your payments to be able to cover them in the future without problems.
That’s about it for now. Check back for our next entry in which we will show you the last four steps for you to be prepared to face your personal loan repayments after you graduate from school.