| Almost all working professionals I know have a | | | | them before hand. Most of the time, the lender |
| student's loan weighing them down. In this economy | | | | should be able to accommodate you and allow you a |
| it is very important that you pay attention to your | | | | grace period for things to improve at your end. |
| student's loans. The US Department of Education | | | | Consequences of default are quite significant. It could |
| now has the power to reach into your bank accounts | | | | lead to legal action against you, garnishment of your |
| and garnish your wages and tax returns without a | | | | wages or salary, a dent on your credit and maybe |
| court order if for one reason or the other you fall | | | | inability to get loans and credit in the future. |
| behind on your loan payment. Below are 6 strategies | | | | Consolidate Your Loans |
| to help keep you on the straight and narrow path | | | | Consolidation is the process of combining your loans |
| with your student loan debt.o Choose The Right | | | | so that instead of having several payments to make |
| Repayment Plano Pay On Timeo Keep In Touch With | | | | every month you only have one. In some cases |
| Your Lendero Notify Lender Of Difficultieso | | | | consolidation can actually reduce your interest rate. |
| Consolidate Your Loanso Postpone Repayment | | | | Consolidation is a reasonable option for students and |
| Choose The Right Repayment Plan | | | | individuals with student loans, but it should be dealt |
| Most loans will require that you start paying it down | | | | with on an individual by individual basis. The factors |
| once you leave school and get a job. Depending on | | | | which are usually considered when one wants to |
| your situation you should choose a repayment plan | | | | consolidate include the amount of credit the person |
| that best fits your needs. If you are looking at | | | | has available, changes in financial circumstances and |
| reducing your monthly payment there are certain | | | | the individuals debt to credit ratio. |
| options available to you and they include extending | | | | It is a good idea for individuals with several loans |
| your payment terms, going on the interest only | | | | from different institutions and different types of |
| based payment plan or going with the income only | | | | loans to consolidate to simplify payment, while |
| based payment plan. Talk to your lender to find out | | | | students with loans from just one source are better |
| other plans they have and the best one for you. | | | | off not consolidating. Another down side to |
| Pay On Time | | | | consolidation is the time it takes you to pay off the |
| To avoid late fees, a hit on your credit score and | | | | loan. If you have a 10 year cycle to pay off your |
| maybe save yourself some money, it is always a | | | | loan and you have paid say 3 years into your cycle, |
| good idea to pay your loans on time. The best way | | | | when you consolidate it starts all over from the |
| to ensure that your payments get to the lender | | | | beginning. |
| when they are due is to pay electronically. This way | | | | Postpone Repayment |
| the lender takes their money directly and it's never | | | | Sometimes emergencies, difficulties and other |
| late. Other benefits you get include not spending | | | | circumstances arise and you cannot continue to make |
| money on stamps which could add up over time. | | | | your loan payments on a regular basis. There are two |
| Some lenders will actually reward you for paying on | | | | options available to you; Forbearance and Deferment. |
| time by reducing your interest rate. Always ask your | | | | Deferment allows a borrower to postpone loan |
| lender for any perks they have, you never know | | | | repayment for a specified period of time. You are |
| what they are offering that would be of benefit to | | | | usually required to complete a deferment form and |
| you. | | | | the condition you could be allowed to defer you loans |
| Keep In Touch With Your Lender | | | | include re- enrollment in school, economic hardship and |
| Whenever you move or change addresses endeavor | | | | unemployment. As long as you are in school, your |
| to inform your lender about such a move so that | | | | loans are in deferment, but other conditions like |
| they can update the information they have on you. | | | | unemployment and hardship have a three year limit. |
| It is in your best interest that all communication | | | | Forbearance allows you to temporarily suspend or |
| channels remain open and they are able to get in | | | | reduce payment due to financial difficulty for a |
| touch with you when they need to. | | | | specified period. Forbearance is normally for a year, |
| Notify Lender Of Any Difficulties | | | | but could be increased on yearly increments. During |
| If for any reason you think you will be missing a | | | | both forbearance and deferment the loan continues |
| payment, get in touch with your lender and inform | | | | to accrue interests. |