We talk about student loans a lot here on Talking Cents, but National Student Loan Prevention Month is just another reason to up the ante. Each year, more and more people are burdened with student loans with no real strategy for how to manage them. We want to help. These tips to be an active student loan borrower should help you find the least stressful path towards financial freedom.
How to Be An Active Student Loan Borrower
Have a Repayment Strategy. Don’t let those student loans take over your life or finances! Creating a repayment strategy is the best way to be an active student loan borrower. Following a plan will help you maintain control of your finances and get out of debt more quickly than if you are unprepared each month. If you follow this plan, you can map out exactly when you will be student loan debt free.
Make a Budget. Part of being prepared is knowing what money you have coming in and going out each month. This way, you can set aside money to fulfill all of your financial obligations. Try our budgeting worksheet to get started!
Monitor Accounts. Keep an eye on your student loan balances and accounts. Routinely check your balance, and if you have multiple loans, ensure that you aren’t neglecting one of your payments. Another aspect of being an active student loan borrower is taking action if you need help. If you are struggling to make multiple payments, consider refinancing or consolidating student loans to become more manageable.
Stay Up to Date. Don’t miss payments! Being on top of your student loan payments and making payments in full each month is important to achieve student loan relief. Making late payments or missing payments altogether can impact your credit, ability to qualify for a loan, and more. Plus, if you avoid payments for months at a time, you could go into student loan default and severely impact your financial future.
Stay Motivated. It’s sometimes difficult to stay motivated in eliminating debt when it feels there’s no end in sight. But if you remain vigilant, stick to your plan, and make extra payments when possible, you will be in great shape. Making smart financial decisions will only put you in a better position to repay your loans sooner rather than later. So stay motivated and stay positive!
For more assistance with how to manage student loan debt, contact the certified credit counselors at ACCC to discuss your student loan options. 1800-769-3571!