Dealing with your student loan debt can seem like a daunting task. The key to getting ahead and out of debt faster is approaching your student loans in a smarter way.
1. Know Your Loan Details
It’s easy to put the blinders on and avoid the details, but understanding the structure of your individual loans can provide much needed clarity. Each loan could have different interest rates and repayment terms. Contact your lender to get your specific details and develop a payment plan that avoids fees and penalties.
2. Review the Grace Periods
The grace period is the amount of time you have after graduation to start paying back your loans. It’s important to identify the specific grace periods for each individual loan, as they can vary from program to program.
3. Create a Budget
Having a plan to pay off your loans will help you breathe easier and could save you a mountain of money in the long run. Evaluate your overall financial picture and see what you can do to maximize your income while minimizing expenses. This may seem obvious, but small things like cutting back on dining out can free up much needed cash that can be used to pay down your student loan debt.
4. Set Up Automatic Payments
Signing up for auto-payment isn’t just the most convenient option – it can also save you money in the long run. Many lenders, including HUECU, offer an interest rate reduction (0.25% discount) when you enroll in automatic payments. The quarter percent reduction may not sound like a lot, but it can add up to big savings over time.
5. Look into Refinancing
If you’re stuck after graduation juggling multiple different loans from a various lenders, than consolidating or refinancing may be your best option. Consolidating can help you streamline your student debt management and can also potentially provide you with a longer term to pay off your student loans. Every situation is unique, so make sure you evaluate your individual options and decide what’s best for you.
HUECU offers competitive rates that that can help you reduce the stress and burden of your student loans. Whether you’re saving for a trip overseas or a down payment on your first house, we’ll help you consolidate your outstanding federal and private student loan debt so you can focus on enjoying your new financial freedom.