Did you know the average student leaves college with just about $25,000 in loan debt? The general repayment on loans of this size is around $300 a month- with figures increasing on larger loans.
Fortunately, there are a variety of steps that can be taken to minimize the impact of student loans on your life. Below are the top ways to prepare your bank account for student loans after college.
1. Plan and Create a Budget
If you are reading this blog post, chances are you are nearing the end of your forbearance period for any outstanding student loans you may have after finishing college.
The most important step you can take at this time before your you have to start repaying your loans kick in is to sit down and map out your monthly income and expenses to have a better idea of how much you will need to budget to fit your new loan expense into your budget.
2. Create a Monthly Payment Amount Before Loans Kick In
If you know basic information such as the total outstanding loan amount and what your interest rate is, there are a variety of helpful online tools such as student loan calculators to have help you get a jump start on your student loan budgeting.
By knowing exactly what you will be paying every month, you can set yourself up for success by being proactive about your spending and saving habits.
3. Take Measures To Protect Your Bank Accounts
If you feel you may not be able to comfortably pay off student loan debt after doing the proper research, there are a variety of ways to ease the pain of loan repayment.
The first step if you feel you will be in financial trouble when it comes to your loan payment is to contact your lender to lower your monthly payments all together based on your income at the time your loan forbearance period is up.
You may also qualify for the loan forgiveness program if you meet certain criteria. It is important to do the research on all of the above topics so you will have time to prepare and leave no room for surprise when it comes to repay your loans.
At Camino Federal Credit Union, we offer a variety of services that will be beneficial to both your bank account and your financial future. Contact us at (800) 835-3400 fore more on how we can help you navigate through any of your stressful financial situations with the advantage of our personal services.