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You may be worried about paying off your student loan, no matter whether you have already completed your university degree or you are just about to start one. Student loans are a great cause of concern for a lot of people. They fear to get into debt before their life has even really begun. If this is something you are worried about, there is no need to be. Read on to discover more about paying off your student loan.
Understand the terms of your loan – The first thing you need to do is understand your repayment terms. The loan you have been granted will depend on a number of different things. This includes your home country, who you are being granted the loan by – i.e. your government or the government of the country you are moving to for your studies, and the year you received your loan. The latter is relevant because legislation regarding student loans may have changed over the years.
Know all your options – There are many different solutions when it comes to paying off your student loan. A lot of people assume that the only alternative is to compromise their financial status for the rest of their life. This certainly isn’t the case. Refinancing student loans is an option a lot of people are not aware of, plus you can always consolidate the money you owe if this is more suitable for your situation.
Be truthful – It can be very tempting to bend the truth so that you do not need to pay as much of your student loans off in one go. As tempting as this can be, don’t do. Your Student Loan Company will know how much you are earning, so don’t land yourself in trouble by covering up the truth.
Avoid borrowing to pay off your loan – A lot of people get worried when they don’t pay off their student loan quickly. This leads them to look into other solutions, including borrowing money to pay off their loan. Don’t do it! Any money you borrow is guaranteed to be on worse terms than your student loan is. Plus, lending like this will show on your credit report and have a negative impact on your rating. Your student loan won’t impact your credit score, so it’s better to owe money to the Student Loan Company than any other lender.
Always focus on your other debts first – This links to the former point: your other debts are more pressing. This is because they have much higher rates of interest, and there are likely to be a number of other fees you could be subject to if you miss a payment.
Hopefully, you now feel more prepared for paying off your student loan. Although this is something you may be concerned about, it’s not something you need to worry about. You can pay off your student loan at your own pace, and you don’t need to fret about this having a detrimental impact on your financial status in the future.