More than 50 percent of Americans with a college degree currently have outstanding student loans. Student debt is one of the most difficult burdens to overcome, which is why the current public college default rate is over 11 percent. If you want to ensure manageable finances post-graduation, here are a few tips that can help you keep any scholastic debt under control.
1. Read your loan repayment agreement – then read it again.
It is critically important that you understand the terms of your loan repayment agreement before you make your decision. You may want to opt for standard repayment, which is a fixed amount over a structured term, or an income-driven repayment, which will be a percentage of your income. Consider carefully what your earning potential will be once you enter the job market, as well as your cost of living. If you earn a bachelor’s degree in Musicology, for example, your starting salary will likely be less than if you earn a Petroleum Engineering degree, so plan your expenses accordingly.
2. Don’t over-borrow.
You may be tempted to borrow a substantial amount – enough to sustain you comfortably without the income of a part-time job – but do your best to resist. Do not commit to an amount that will only be burdensome later on.
3. Communicate with your loan servicer.
Don’t lose touch with your loan provider. If you find yourself in financial difficulties, it is important to contact your servicer in order to work out an immediate solution that preserves your credit score and possibly suspends your repayment obligation.
Student loans don’t have to be an insurmountable obstacle – Americor Funding delivers customized debt management solutions that allow you to maintain control of your finances.
