Student Loan Payments: Why You Should Get Started With Them ASAP
There are some types of debt which are considered bad debt, and some types of debt which is considered good debt. Student loans are something that is considered good debt.
The reason for this is because they are loans that were taken out with the idea that they would help improve your future and because they have a very low-interest rate.
The only time that student loans become a problem is when you default on your payments.
When you graduate from college you usually have six months before you have to start paying off your loans. The idea is that this gives you time to find employment and get settled into your professional life.
What most students do not understand is that while six months might seem like a long time when they first graduate, the months go by much faster than they anticipated and the loans come due quite quickly.
Students need to keep a watchful eye on the calendar if they are getting close to the six-month mark and have not found a professional job. They should at least take part-time employment so that they can start to make their student loan payments.
Before the student graduates, they need to sit down and make a list of all the loans that they have taken out.
Most students have multiple loans and it is easy to forget one.
In addition to writing down the name of the loan, they need to write down the total amount that was borrowed, and what the monthly payment is.
If you are having a difficult time starting your student loan payments, you should give some serious consideration to signing up for theAmeri-Corp program. This program puts you in contact with organizations that need people to work for them.
While you are involved with the Ameri-Corp program your student loan payments will be deferred. Upon completion of the program, the organization will pay off a portion of your student loans.
Not only is this an excellent way to handle the loans, it is also a great way to make contacts and get some work experience. Since most student loans are financed by the government, you should not expect them to just disappear. If you default on the loans, the government will find you.
When they do, they will garnish your wages and will continue to do so until the loans have been completely paid off.
Most people find that simply making the monthly payment is preferable to the embarrassment and inconvenience of the garnished wages.
If you are paying off your student loans and have some extra money laying around, you will want to put that extra cash to the loan that has the highest interest rate.
The longer you owe money on that particular loan, the more interest it will accumulate. Adding five or ten extra dollars each month to the high-interest rate loan payment can make a really big difference in how much money you spend on your education.