Students usually face several types of debt management crises with student loans in their academic life. Sometimes, student loans become hectic for students of the middle class to pay debts on time. There are various strategies they can follow in managing their EMI and living a stress-free life. Some of them are the loan avalanche method, automatic bill payment, strategic debt management planning, and loan forgiveness.
If you are in trouble with multiple loan debt repayment issues? You can take debt consolidation services offered by many banks and financial institutions.
Here, in this blog, you will learn how to manage student loans very effectively for a relaxing life in academics.
Calculate Your Debts
The first step you need to follow is calculating all outstanding amounts with debts and EMIs. You can handle your debt repayment issue very effectively only you know how much amount you owe from a lender. You can easily play with debt management if you have understood the value and the total outstanding value you owe.
Choose Reliable Debt Consolidation Services
If you have multiple EMIs and facing challenges in paying every month, then you can easily choose debt consolidation services. This strategy will help you pay a single loan every month instead of juggling with too many on several dates and schedules which seems very hectic, especially for fresh minds of academics. Consolidating debts and money into one brings smoothness and transparency to money management deals.
Understanding your Banker’s Term
Now, once you have understood the size of the outstanding loan value, it’s time to sum up the terms fixed by the lender for every loan amount. Each may have a different rate of interest with a different repayment term. You can consider everything and try to pay your debts in advance to live a relaxed life. These crucial things will help you create a payback plan that helps you stay away from several types of fees, penalties and charges.
Analyze The Grace Period
Now, it’s time to analyze the grace period of every loan account by contacting your lender. The grace period is the time limit in which you have to start paying your loans. It’s generally after the graduation period. Understanding the grace period will help you know how much time you have left in hand to tackle things easily. It also varies from one loan account or type of EMI to another. For instance, a student loan grace period differs from that of a personal loan.
Explore the Opportunity of Loan Forgiveness
Now, you can easily discover the ways of loan forgiveness by connecting to your financial institution. This option is provided to those having good merit in academics, accidental cases or closure or suspension of classes permanently before completion of the course/degree. Most of the banks have distinctive policies for loan forgiveness. You can ask your bank for this plan. If you are eligible for the same, apply instantly because it will relieve you from paying debts to your financial institution.
Choose Personal Loan
If you are juggling with various issues of student loan debt repayment, then the last but not the least option will be the personal loan. It provides flexibility in managing your finances or using money as you please. A personal loan is provided by most banks and institutions to every citizen and individual. It provides very minimal documentation and doesn’t need any collateral.
Use Debt Avalanche Strategy
Using debt avalanche strategy helps a lot especially if you are facing trouble in repayment of debts or EMI. If you are a student and want to pay off debts with ease, the debt-avalanche strategy will help you here. In this repayment planning, you have to start paying debt with the highest rates first and move down closer to your goal of final repayment of EMI with the shortest or smallest one. You have to come down in a reverse order like 10, 9, 8, 7, 6, 5, 4, 3, 2, 1.
Summary
Juggling with various types of student loan debt repayment issues? Choose money management strategies like debt consolidation services, and the avalanche method, and apply for loan forgiveness after knowing the total outstanding cost, and grace period.
