Student loans are a big deal for many young people, but what’s the best way to manage your student loan balance and ensure that your payments are made in full?
According to the American Council on Education, if you’re borrowing money for college, you’re doing so for the wrong reasons.
For starters, student loan interest rates have tripled in the last decade.
“We are seeing a lot of people using student loans to finance their education,” said David Cote, director of education finance at the ACE.
The ACE says that students borrow money for the education of others through private loans, but it’s hard to determine exactly how much you’re actually paying.
While interest rates may seem high, it’s important to realize that it’s only the interest you pay on the loans you’re paying.
The interest that you receive from the government is also what you have to pay back.
When you borrow money, you have the right to expect interest to be paid on it as long as you pay it off.
But, in order to maximize your repayment, it may be helpful to think about what your repayment will look like.
To help students make sure that their debt isn’t overwhelming them, here are the best ways to manage student loan payments.
First thing’s first, you need to know what your payments will look and feel like.
If you have a student loan, your payment is the amount you pay back over the life of the loan.
The more you pay, the more interest you’ll be able to keep.
Student loans are paid monthly.
If you’re a single parent with two kids, your payments for college will be your first and last.
If that’s not the case for you, you can save yourself a ton of time by looking at how much your student loans will add up over the course of your life.
According the Ace, the average student loan payment is between $35,000 and $42,000.
Depending on your income, your monthly payment may be higher.
But if you work full-time and have a steady job, you should expect your student debt to add up to between $3,000 to $6,000 over the duration of your lifetime.
Here are some other things you can do to keep your student payments manageable: Pay your loans off in full each month.
If your debt is $150,000 or higher, you will be paying a monthly interest rate of about 12%.
If you are paying your debt off in part, that rate will decrease to about 8% or less.
Don’t use your student credit cards to make payments.
While you may have a debt load, if it’s not substantial enough to warrant using your credit cards, you shouldn’t use them to make student loan loans.
The ACE reports that about $7 billion of student debt is currently held by credit card debt.
Check your balance frequently.
You may need to make a payment in a few different ways, like by making a payment with a debit card or by taking out a loan.
Be aware of your repayment options.
The student loan repayment plan you choose is the way you will pay your student fees.
If it’s the same plan, you may want to look at a lower rate.
If, for example, you were using a 3.8% interest rate on your student accounts and you wanted to pay off $1,200 in tuition and fees, you’d have to take out a $500 loan to pay the balance.
Look for other ways to reduce your student account debt.
If a credit card or a traditional payday loan isn’t an option, look for alternative repayment plans that can help you make payments on your loans.
For example, a credit line, a payment plan that allows you to use the money to pay for living expenses, or an interest-only loan could all help you keep your payments low.
Stay up to date with student loan rates.
The average interest rate for the first year of a new student loan is about 3.25%, according to the A.C.E. You can check your rate on the Consumer Finance Protection Bureau’s Student Loan Calculator.
It can help if you’ve taken out a student debt, but there are other ways you can get a clearer picture of your monthly payments.