Having student loans hanging over your head can be scary, but it doesn’t have to be. There are a lot of amazing options that can help, and many of those options take no more than a few minutes to implement.
But before you can utilize these options, you need to know the specifics of your loan better.
When was the last time you flipped through your loan documents? If you’re like most people, probably never. Right?
No one blames you—who wants to read through dozens of pages of dry and overly complicated text? But remember—knowledge really is power in this case. So, the better you know your student loan, the more power you will have to resolve it.
Before reading the following points, make sure you have your loan in front of you, so you can focus on information specific to your loan type, repayment plan, deferment policy, and interest rate.
Ready? Here are a couple of questions to help you focus:
Is your interest rate too high?
Did you know you might be able to negotiate a lower rate?
Your loan may also include terms and special conditions that can make it much easier to repay or even pay off entirely.
Keep your own loan on hand to identify whether a particular term or condition is available to you. Then, examine those options to find one that might be right for you.
What if you no longer have your loan documents or even your student loan information? Fortunately, your student loan information is easy to find. Here’s how:
Now let’s jump into the good stuff!
Your loan includes all kinds of useful terms and special clauses that you may never have noticed. Here are a few examples to give you a better idea of the kinds of programs and options available to you:
These are only a few options of many that maybe available. In addition, outside programs, such as consolidation and refinancing, can allow you to lower your student loan balance.
Student loan debt is just like other debt, and that’s good news for you!
Most people don’t know that student loan debt works exactly like other forms of debt. Why is this important?
Because student loan debt can be refinanced.
You can approach another lender with your student loan and refinance for either a lower monthly payment or a reduced term, so you can pay off your loan faster.
Student loan refinancing is one of the easiest and most powerful programs available to anyone looking to eliminate student loan debt once and for all. Refinancing can be used in conjunction with other options, such as repayment assistance. Remember that more than one option may apply as you’re taking everything into account.
If you’ve refinanced once before, you can refinance your student loan again.
A second refinancing may be especially relevant if your credit has improved noticeably since you last refinanced—you maybe approved for another reduction in your monthly payment, or to supercharge your payoff efforts to get rid of your loan sooner rather than later.
Later sections examine these options in greater detail. For now, take some time to get to know your student loan better by learning about the different types of student loans and the various types of repayment methods.
The more you know about your student loan, the better off you’ll be.
You can obtain student loan information from Federal Student Aid for federal loans, or, for private loans, by getting your free credit report at Annual Credit Report.
There are several useful potential options for managing repayment, such as student loan deferment, forgiveness, and repayment assistance.
Student loan debt is like any other debt—it can be refinanced to save time and money.
