Staying on top of your student loans even after you’ve been paying them for a while is important. That’s not a fun idea, but even if you’ve been out of school for more than 5 years, it’s one you want to pay attention to.
Why? Well, the repayment option you chose when you first graduated may not be the right one for you now, however with a little strategy and knowing what goals you want to achieve, can help with managing your student loans event after you’ve been paying them for what feels like an eternity.
Stay in Touch with Your Loan Servicer
Just as you would sign up to subscribe for a newsletter to your favorite clothing store, signing up for notifications from your loan servicer should be a priority as well. Typically loan servicers will communicate important messages regarding your loans through its lifetime. It helps to stay in contact with them so you don’t forget payments and if you ever need to change your repayment options. Just as you would with a bank, always remember to send them your most up to date information (i.e. address, phone number, email).
Consolidation vs Non Consolidation
Consolidating a loan combines multiple into one whole new loan. Typically borrowers would want to consolidate in order to bring down monthly payments, receive a more favorable interest rate and have everything in one place. However, beware when consolidating as you could lose certain benefits. Before you decide if this is something you’d want, do some research and consider all options.
Knowing Your Debts
Student loans probably aren’t your only debts, which is why it’s important to know the exact amounts of each. Make a list of all your debts and prioritize them so that you know which ones are most important, to which ones don’t need as much of a focus. This will help you to manage your life goals while organizing a payment schedule to get those pesky loans out of the way sooner.
Budgeting with Goals in Mind
Once you’ve listed out your debts and created a visual of how your financials looks don’t be afraid to create a budget. This will help you to see where you should be focusing most of your energy and how you can organize payments to better fit your lifestyle. Also keep your goals in mind while creating your budget, for example if you’re trying to buy a home, but have a student loan holding you back you’ll be able to identify that and create a plan on how to accomplish your goal.
Ready to knock these loans on their butt and put those years of school behind you? Check out our budgeting sheet so you can get started on your new repayment strategy. RIP student loans!
