Student loans are such a popular subject that everyone has something to say about them. While they are certainly popular, there are some things you may not know about student loans. For example, you may not know that Elfi loan finance offers some of the most flexible and affordable loans available.
In this post, weâ€™ll be discussing some of the other things you may not know about student loans, and how you can use the information to your advantage.
Table of Contents
You should put your payment on auto-debit.
Automation makes life so much easier, and you can lessen the burden of your student loans if you automate your repayments. Besides the convenience, automating your payment may also earn you a lower interest rate. Some lenders offer a reduction of up to 0.25% on your interest rate if you automate your payments.
You should be careful, however, not to “automate yourself into a corner.” If you usually have barely enough to cover your monthly expenses, automating your payments may not be a good idea. You donâ€™t want to be stuck without enough money to get through the month.
You can still get a scholarship after beginning your program.
If youâ€™re unable to secure a scholarship at the beginning of your program, student loans may be the next best option for funding your education. However, if youâ€™re still in school, you may be able to win scholarships. Even though most people believe that scholarships are for incoming first-year students, thatâ€™s not always the case.
You can go through websites like scholarships.com to find something suitable for your situation. With a scholarship, you can drastically reduce the amount you ultimately have to pay back.
Explore federal alternative repayment options.
If your student loans are federally guaranteed, you can enter into an income-driven repayment plan. This will enable you to structure your repayments in a way that suits your current income level. Plans like these enable you to cap your repayments at a certain percentage of your monthly income.
Additionally, federal loans have deferment and forbearance options. If you suddenly come upon a financial crisis and canâ€™t make your monthly payments, you can defer your payment for some time. However, you should know that these benefits may end up affecting how much you pay back in the long run. The longer it takes you to repay your loan, the more youâ€™ll end up paying.
You can refinance your loan.
Depending on your credit score, you may be able to refinance your loan and get under more favorable terms. With a good credit status, you can refinance your loans with a private organization, restructure your payment plan, and might be able to adapt to Multi-Currency. Ironically, your credit score is determined by things like your debt status. If you’ve been a bad debtor, you may not be able to qualify for refinancing.
While seeking options to lessen the burden of your student loans, you should be careful not to fall victim to student loan scams. These scams are set up by people looking to take advantage of desperate debtors.
They make promises that are too good to be true, like total forgiveness of a debt status or ridiculous interest rates. In exchange for these offers, they ask for upfront and monthly payments. Before signing any documents or paying for any services, be sure to thoroughly research the organization youâ€™re dealing with.
Featured image source: Freepik