So, if you are one of many people at the age of 20 who take out student loans, make sure you avoid the following four big student loan mistakes so you can enjoy your 20 years and not be burdened with too much debt when you graduate
1. Not realizing your credit balance
When I graduated from college, I finally decided to sit down and find out how much student loans I had.
At first I didn’t even know how to figure it out. Did I call my school? Did I just check my credit report? I honestly had no idea where to start. After several calls to financial assistance, I received all the necessary information from the federal database of student assistance.
Then I found out that I bought $ 14,000 in student loans. Anyway, $ 1,000 here and $ 2,000 there, in my college, did not seem to be $ 14,000, but it added.
I ended up going to graduate school before I had to pay, but I had no idea that $ 14,000 would turn into about $ 100 or more depending on my redemption plan after I finished.
Do not make this mistake. Even if you are nervous about it or you know that the number is large, when you finish your studies, sit down and count your debt anyway. This is the first step you need to take to start paying for it.
2. Ignoring student loan payments
When you graduate from college, you will eventually start receiving bills for your student loans. Many students receive these bills and do not pay attention to the deadlines. Many still see these high numbers and are afraid that they will not be able to pay, so they ignore their student loans, thinking that they will simply leave. Please, do not do that.
Remember that there are many different repayment options when it comes to federal student loans, including income-based plans. Therefore, if your account number is larger than you can afford, call your lender.
I know this is a difficult challenge, but it’s better than ignoring it. The last thing you want is that your student loans go to default because you did not pay them. This can have serious consequences, including payroll reimbursement. It can also ruin your credit, and this, in turn, can have negative consequences in the future when you want to buy a car or a house.
Related : Westwood College loan forgiveness
3. Choosing the wrong repayment plan
There are so many different types of redemption plans available to graduates that I did not even know. In fact, choosing the wrong repayment plan is one of the biggest mistakes graduates of student loans.
If I had known about this strategy, I could have entered into a complete redemption plan in order to give myself time until my income increased. In the end, it is much better to have a payment that you can afford, instead of going into default.
You also want to find out if your job corresponds to certain types of write-off loans, such as Forgiving public debt for late payment and forgiving the borrower Teacher. There are even loan cancellation options for people who transfer to vocational schools, such as medical school and law school.
Do not assume that you have to pay high student loan payments every month for many years. Instead, take the time to do the research, and find out how you can reduce your student loan payments if you struggle, or spend some time so that your finances are in order so that you can quickly pay off these annoying student loans.
4. Use your student loans for spring break
My husband jokingly called us “fake rich” when our student loans came out, which was undoubtedly the case when several thousand dollars were deposited into our account in one day. Having a large amount in your account is not a problem when you know how much you will have to spend on books, housing and other expenses for studies.
This is a problem, however, when you use your loan balance for things that are not quite like school spring breaks, great clothes or great nights in the city.
True, many students use their student loans as spending money, and this is definitely a mistake. You do not want to buy clothes or pay for excursions that are not related to your loans, because you will pay for these things for many years after graduation.
Instead, try to work in college and use this money to pay for small and little life. Then keep your student loan balance as low as possible and pay only for necessary expenses.
For more info : https://studentloansresolved.com/