7 Steps to Be Ready to Repay Your Personal Loans After College – Part 2
In yesterday’s post, we started exploring the different steps anyone who recently graduated from school needs to consider in order to better manage their personal loan repayments.
Usually, most banks and other lenders will give recently graduated students a grace period of about six months for them to start repaying their student or personal loans, but most students fail to plan properly for these payments, which causes them to default on them more often than not.
Considering that, in this post we take a look at the last four out of seven steps for former college students to start with the right foot when it comes to repaying their personal loans after school.
4. Look for Different Repayment Options
Traditionally, the standard period for former students to repay most personal loans can be up to 10 years. However, that does’t mean you should’t consider and explore other options.
In fact, a lot of recently graduated students don’t realize they take advantage of better terms from their banks and lender and thus, extend their loan repayments across many more months and perhaps even be eligible for unique federal personal loan programs that might aid them even further along the way to become debt-free. In short, former students should become knowledgeable about their options.
So to take advantage of this, former students should contact their personal loan service provider and request an extension of the repayments of their personal loans. Additionally, they can also ask if they are eligible for federal personal loan relief programs. On top of that, the web is always an important source of tools and information, so everyone is encouraged to scour for it to find useful programs and personal loan information.
5. Pay for the Interest
If you happen to have an unsubsidized personal loan, you risk paying a lot if you let the interest accrue all throughout your grace period. Naturally, they are not required to pay off their personal loans until they enter the repayment period, but since accrued interest can be capitalized, it could be a good idea to start repaying maybe just the interest for their personal loan as soon as students exit college, otherwise they risk, increasing their debt quite dramatically and facing bigger payments as a result.
6. Seek Help and Advice From Financial Aid Officers
While students can be graduates and be out of college for a while now, they need to know that the financial aid office of their schools is always open for them to go and ask for help and advice, as well as to solve any questions that they might have about their personal loans and their terms and rates.
In fact, students should know that they can go to these offices for help and advice even years after they graduate, since schools usually keep very detailed records of all personal loans for severe years.
7. Learn to Take it Easy
Perhaps the most important piece of advice for any former student that has either a student loan or a personal loan is to simply not to panic.
During these six months, a lot of former college students can be very anxious about all the payments they have to make for their personal loans for perhaps years to come. In this situation, it helps a lot to visualize the future and everything that the personal loan has helped achieve.
Just using that perspective can help student map out their achievements against what they have to pay for them, which in the end will allow them to better plan what they want to achieve financially-wise.
There you go. Hopefully, if you are a former college student, you will find these steps useful and be thankful for them in the future when your college personal loan is all but past.