A large number of people, including newly graduated fresh students fall behind on their education loans apparently for no good reason! Most banks and other financial institutions estimates that between one – quarter and one – third of borrowers fail to meet the repayment schedules on time.
What we are trying to look at in this article is a simple beginner’s guide to repaying student loans and being on the safe side with the lender and keeps you out of trouble.
What Do You Owe?
The concept of literally “forgetting” how much you owe is not an excuse anymore. Well, for students, maybe it still is! Many students have a few loans and get new ones each year to rush for approvals and register for new classes! Universities do not help in making loan schedules and loan terms and conditions easy to comprehend either. Repayment has to begin with accounting of each loan. You need to start with whatever is there in your documents. Check and ensure you are aware of all your student loans. There are online facilities available against your name from which you can be fully aware of how much do you actually owe. A key piece of information you need to collect is to identify the agencies assigned to collect your loans on behalf of the lenders. You may have to contact them to identify the schedules and repayment plans.
When do you have to pay and to whom do you have to pay?
Your loans will have different repayment schedules and it depends on the lending organization. Some loans grant you a grace period of 6 months to one year after you graduate. With loans from private lending organizations, it may be different. Assuming a loan provider fails to give you clear instructions on repayment schedules and dates, how do you ensure you do not end up in trouble? Find out if there is any way you can link your bank account in such a way that the repayment amounts are debited without any hassle.
Repayment based on your Income
For individuals who do not have much income against their name, there are several government programs that set payments on federal student loans based on how much money they make. This income driven payment may in fact lead you to pay more interest over time than you might otherwise have to. However, for some cases, the federal government may even forgive the debt after a number of years of non repayment as well.
Research has shown nearly 85 percent of federal and private loan customers were in fact repaying their loans on time and meeting their requirements without any hassle. If at any case you need any support on repayment schedules and other loan related matters, make sure you fix up an appointment with your loan service provider and get everything explained in a way you understand. And, if in case you fail to meet your loan repayments and you need legal support, Fugate Law Firm is always there to help you out!