Manageable Student Loans
Student Loans give a student the opportunity to get an education while borrowing the money to go to school. In order to manage a student loan it is very important to establish a financial plan early on in order to be organized and proactive with paying it back. A few steps a student can take in order to reduce the amount borrowed are, choose a school that has affordable tuition costs, work while you are in school to save a substantial amount of money for your loan, have your employer pay for your tuition, apply for grants and scholarships, and most importantly, don’t borrow more than you need! In my personal financial plan I was able to “trim back” on my borrowed amounts. I was able to do so by calculating only the necessary amount for school expenses and what was considered dire. I am capable of doing so because I work full time and make a salary that allows me to live comfortably while still saving a substantial amount while going to school. I have found that it is much easier to forecast your financials in this scenario when there is already organization and a monthly budget in place. Considering I have done this for so long, when it came to making my financial plan, I was able to easily incorporate it into my monthly expenses to ensure that I can avoid delinquency and default with my student loan.
Considering the fact that default & delinquency will make your credit very messy for years to come, it is so important to take the necessary steps to avoid this unpleasant scenario. Some steps and options that students can take to make loan payments more manageable in order to avoid delinquency and default are, first contact your lender and stay in communication with them. If you are having trouble with making the payments, you may qualify for a loan deferment. Your loan may be able to be deferred for up to 3 years, or rehabilitated if already defaulted. The main step to take in order to avoid this situation would be planning ahead...
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