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When you set out to pay your student loan debt, it is important to consider a few things. You may have to pay a government student loan, you may have been given a grace period but the importance of paying it off quickly is huge.

This article “Pay student loan debt” is meant to help students understand their financial responsibilities and manage their financial affairs in the right manner. While moving out of college the last thing a student wants to think about is how the heck they are going to get the money to pay their huge student loan debt.

As a student borrower you are saddled with certain responsibilities just as you complete negotiating your loan. To maintain a good standing with the lender loan obligations need to be fulfilled diligently. Even one missed payment is an indication of delinquency to the people who may be reviewing your loan applications. This will cause huge problems when you are ready for a home or a new car in the years to come.

There can be circumstances where it may become genuinely difficult for you to make timely repayments. In such a situation you need to get in touch with your lender immediately. There are many ways in which you may get payment relief.

In many cases you may not be required to make repayments untill you graduate. The problem is that even after graduation there are many students who may not find suitable placement within the grace period. In other cases even a secured job may initially not pay enough to meet loan obligations along with covering other necessary expenses, which may lead to loan repayment issues. Keeping this in mind there is usually a six month grace period before the repayment schedule kicks in after your graduation.

You need to choose one from a number of strategies available that may help you in repaying your student loan. Nearly all lenders and service providers offer several options by way of different repayment plans and you should check with your lender about the availability of plans. A few of them are discussed below.

Graduated repayment - In this a long term repayment plan option spread over 12 to 30 years based on the total amount borrowed. For example, loans below $7,500 can be extended up to 10 years, $7,501 to $9,999 up to 12 years and so on, with 30 years repayment period for loans of $60,000 and above. You begin by making smaller repayments which gradually increase every two years. Under this option the monthly repayment cannot be less than 50% or above 150% the installment payable under the standard repayment option. It should also be equal to at least the interest amount payable subject to a minimum of $25.

Standard repayment - Standard repayment- For Federal Stafford and Federal PLUS loans the standard repayment schedule is structured over a period up to 10 years with the rate of interest calculated at 8.25%.The minimum monthly repayment installment for both loan types is $50 per month.

Extended repayments - In extended repayments you need to make smaller monthly repayments over a longer repayment period that can extend from 12 to 30 years depending on the amount borrowed. However, the total interest paid over the life of the loan is much higher. For example, if you borrow $20,000 @ 6.8% interest the effect of switching from standard repayment to extended repayment would be:

Income sensitive repayment - This is applicable to a certain class of borrowers and takes into account a specific percentage of the borrower’s income to calculate the monthly repayment.

Loan consolidation - This helps pay student loan debt because it provides the facility of consolidating many types of loans into a single loan with just one repayment to be made on a monthly basis on a low rate of interest.

Prepayment option - This option cay help you pay student loan debt because it offers a very good opportunity for reducing the overall cost of the loan. Most private student loans incorporate terms that allow you to payoff a part of your loan before the scheduled repayment begins. This can be done at any time during the life of the loan.

Additionally, if you are paying off a government student loan, there may be certain programs offered by your state that can reduce or even cancel your loan altogether if you are performing certain services that include teaching and nursing. You can verify the availability of such programs by checking with the state agency for post secondary education of your state.

All of these things can help you to pay your student loan debt off that much faster.

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Author: JL

You might not think that banking for students would be much different than normal banking but there are a few things to consider. It is always important to save more money as a student. Because of the greater need to manage your money the banking account that you choose to go with will be much more important.

a) Overdraft Banking for Students

- It’s important to check the overdraft provided under different banking accounts as you will be operating on a tight financial budget and may need overdraft banking to get you through emergency situations, this may be quite frequent during your college study. Considering this, it may be necessary to opt for a banking account that offers decent overdraft limits, these are the types of banks students gravitate too. These limits usually vary with the year of degree. Check with several banks to make a comparison. For example some banks may allow staggered interest: free overdrafts of $1500 in the first year of study amounting to $500 for the first six months, $1000 for months 7, 8&9 and $1500 for the rest of the year and for the following two years of study. For students on longer courses the limit may go up to $2000 for the 4th, 5th and 6th year. For other banks the overdraft limit may be just $1000 for the first three years.

b) Overdraft Banking Account Charges

- It is also important for you to know what charges would apply in case you go beyond your interest free planned overdraft limit. Banks charge heavily for unauthorized overdrafts (unplanned overdrafts), as also for paid referral charges.

Paid referral charges are where the bank allows a payment that puts you over your agreed upon overdraft limit. This should be avoided because when this happens the bank will take the opportunity to charge you a heafty fee. It’s best to make a comparison and select a bank that offers the best deal on this and other charges. For example a bank may allow interest free overdraft in excess of your interest free limit for the first time you overdraw. Another bank may not allow this and charge your account every time you overdraw beyond your interest free limit. Interest is charged only on the amount beyond the planned overdraft limit. Usual rate of interest is 8 to 9 percent. Additionally there may be a $30 flat monthly overdraft fee. Overdraft charges are very heavy and you may have to pay $12 per day for any unplanned overdraft up to $50 which may go up to $30 dollars per day for unplanned overdrafts above $50 to $200. This makes the need to frugal budgets very important.

c) StudentBanking conveniences

- Check if the bank you choose offers Internet and telephonic banking services. It will be preferable to opt for a bank that has a branch on your college campus. Still better would be one that remains open on Saturdays.

d) Co-operative and friendly tellers

- Your banking experience depends greatly on a specific branch of a bank. You may not have the same experience with another branch of the same bank. Before deciding on the bank to open your student account, you need to consider the amount of time you had to spend in a queue, whether the bank afforded you a personal interview, whether the staff you interacted with was knowledgeable about whatever they discussed with you etc. Personal rapport with bank customers is crucial for inspiring customer confidence and you must feel comfortable in approaching someone in the bank, in case you come across some difficulty during your banking activities.

e) Special banking incentives or other available offers

- In order to increase their business, most banks offer special banking for students incentives like travel rail cards etc. However, you must not give priority to incentives over low charges and better overdraft features. These things will be more important for you during your three or four years of college.

Remember, you are not obliged to remain with the bank you open your banking account with at the beginning of your college study. If you are not satisfied with the services that you’re receiving, just find another bank or student branch that provides better service, this may help you to save more money to support your education.

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If you are no longer a student, whether or not you are appoved for a loan depends on credit rating, which is based on your credit history, which in turn depends on your income and your spending and repayment habits.

What if, you are a student and on top of that, you don’t have a credit rating? Will you not get a student loan? The answer is, ‘Yes you will get it’! That should not stop your from getting a student loan to pursue your education.

A loan co-signer is your first option! What if, there is no co-signer as well? Yet again, you will get it. However, in the absence of a co-signer as well, the number of loans gets limited. But, just to make you comfortable, chances are not nil.

Ways in which you can get a student loan financials without having a credit rating and a co-signer are listed below.

• Have a look at federal based student loans. If you are traditional student, the federal loans get bottle-necked with only Stafford and Perkins loans available. None of the two require any credit check.
• Free Application for Federal Student Aid (FAFSA) is to be filled because without FAFSA, you cannot get a government loan. FAFSA helps not only in getting government loans but also ensures that you get any applicable grant money.
• If you are a needy student then, you can apply for a Stafford Loan. So, if you fall under a low-income group and you do not have a credit rating or a cosigner, you have high chances to get the Stafford loan. Although the amount sanctioned is small, you can actually start financing your education with the money you get.
• In case your financial needs are the greatest and you can show that, applying for the Perkins loan is a plausible option. Sanctioned at 5% interest with a longer repayment term as against the Stafford loan, you can start financing your education with the Perkins loan.
• In case of non-traditional students, options increase. Although Stafford loans and Perkins loans are the only two options they qualify for, many grants and scholarships are available for those who return to colleges for more studies and to earn degrees.

You don’t need a magic wand or a genie in a lamp so that you can finance your education, all that you need is a little bit of knowledge about the student loan options available and the ability to harness them to their fullest. Try going to your school’s student loan finance center to find out more about government student loan program.

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