7 Ways to Be Ready for Student and Personal Loan Repayment – Part 2
In yesterday’s entry, we started taking a look at the first three out of seven ways in which you can be ready for repaying your personal loans if you are given a grace period to start paying them. In yesterday’s first entry in this series, we discussed how risky it can be to be given a grace period to repay your personal loans, since a lot of people tend to make the mistake of considering that grace period as a small vacation and completely fail to do any planning on how they will actually pay their debts.
So without any further ado, let’s start looking at the remaining ways in which you can prepare and plan your payments for those important first personal loans.
4. Consider different repayment options:
When it comes to student and personal loans, the usual repayment period is of about ten years. However, contrary to what most people believe, this is not the only option borrowers have. They can also manage and negotiate those personal loans by extending their terms or negotiating their interest rates. Even more, a lot of people are eligible to participate in federal loan programs that help them with their repayments.
To know if you can apply for those, be sure to ask your personal loan servicer if you qualify for one of them, such as loan relief programs like the Income-Based and Income-Contingent Repayment ones. In addition to that, there are also several online tools to be considered, like the SimpleTuition’s PayBackSmarter, which allows you plan, schedule and verify how would you do financially, under different personal loan repayment plans.
5. Pay your interests without delay:
If you happen to have an unsubsidized personal loan, you might know that that loan’s interest will accrue over time during your grace period. Of course, you are not forced to pay any of it until you start repaying all the personal loan. But in all true, it would be better for you to do so if you can, since accrued interest will surely be capitalized when your grace period ends and will then be added to the principal amount of your personal loan, which will in turn, increase your debt quite substantially.
6. Seek for help from your financial aid officers:
While the chances are you might have already graduated and perhaps even found a job, you will be surprised to learn that the financial aid office at your school might still be open. So feel completely free to head back to it to ask any questions you might have about your current financial conditions and pending personal loans. Even if they didn’t help you with it initially, you might find useful help from them eventually.
Even more, if you are friends with someone who works there, they might even help you plan your personal loan repayments.
7. Take it easy and with patience:
Of all the seven steps mentioned here to repay your personal loans, this one is easily the most valuable one. If you ever find yourself in a dire situation that has to do with your personal loan repayments, you should stay calm and not panic. Instead, take a step back and use all the resources you can find to plan accordingly and not miss your personal loan repayments.