Since nearly one-third of all graduates will default on their student loan payments within the first three years of graduating it is important that take a look at ways to resolve this problem. While some may not be able to avoid borrowing for college, it certainly doesn’t mean they have to be a student loan debt default candidate.
Strategies For Managing
One of the biggest problems college students face when taking out loans is deciding how much they actually need to borrow. Too many people get into the habit of borrowing the maximum amount offered by the lender and living off what is left after paying for tuition and books. This is never a good borrowing strategy. Instead, find out a close estimate what you need only for tuition and books, and only borrow that amount.
Another problem that often arises right out of college is the adjustment to payments. Until graduation, students are used to living on a certain budget with familiar expenses. Adding in the cost of a student loan payment can be a tough adjustment. Even with, hopefully, an increase in wages from a new job it can be tough to find a balance with the student loan payment. Anticipating the payment amount is as simple as calculating an estimated payment due on a loan before applying for one. Knowing how much you could be paying after graduation can help you better plan and save along the way.
A mistake some graduates often make is taking too much advantage of the grace period after graduation. Most loans will give you a six month grace period before loan payments are required, but you can certainly start paying right away. Don’t skip out on payments during the grace period; instead, use this time to become accustomed to making student loan payments part of your monthly budget.