Student loan is one of the major debts. When you were applied for this loan for you, you might not have noticed the details of financial commitments you made, you focused more on the money you received than the duties that would fall on you in the imminent years. Now is the time that you must repay it. Remember, timely payment is a good practice as it will appear on your credit report. The last thing you want to do is, spoil it.
If You Can Afford To Pay
If you can afford to repay the debt, save yourself as much money as possible before you begin to repay the loan. These options are often not accessible when you start your first repayment, however, you can review them at any time. Personal loans by BC-Loans can also help you to some extent.
- Student Loan Consolidation
Look out for consolidating your student loans. It further assists you in reducing your monthly payment and get your interest rate fixed. This also helps in shielding you from a rise in the rates in the imminent future which could impact your payment substantially.
- Accelerating Payments
Most of the student loans carry no pre-payment penalties. If you can afford to make a larger repayment of your student loans than what is required, then the extra amount you sent will be applied directly to your principal amount. This helps you in saving a lot of money by lessening your long term finance charges.
If You Cannot Afford To Pay
When you are broke and unable to repay as per the agreement, there are many options available to repay it. Have a look at these life-saving options.
Forbearance programs let you delay your payments for a specific time, generally for a maximum up to one year. Interest typically continues to accrue during this period. You can opt for this program for multiple reasons like medical hardship, unforeseen personal problems, a demonstrated inability to repay the loan within the timeframe agreed to, and proving that the monthly payments will exceed 20% of your monthly income. Only these conditions make you eligible for forbearance program.
- Extended Repayment Plan
It lets you postpone the repayment term on your loan. Many times it can be extended to up to 30 years. The longer you extend it, the higher your total costs on the loan.