A number of banks and other private financial institutions offer student loans to individuals who have no financial means to cover their university or college costs during an academic year.
In most cases, students explore this funding option when they don’t meet the qualifying criteria for a bursary, scholarship or study grant, but some of them have unfortunately missed the application deadlines for these funding options.
However, all of these options help students cover essential costs such as registration fees, tuition fees and living expenses.
When it comes to student loans, they need to be repaid with interest and typically have fixed payment schedules and terms.
Although that is the case, it is beneficial to the guarantor and/or student to explore several strategies to pay off the student loan faster.
Here Are Strategies To Help You Pay Your Student Loan Faster:
- Stick to the contractual agreement by paying your minimum monthly instalment on time.
- Pay more than the minimum monthly instalment.
- Reduce your overall spending, so that you can put extra funds towards your student loan every month.
- Avoid late payments and paying lower than the minimum monthly instalment because this may increase interest rates and also harm your credit score.
- Communicate with your lender should you have issues making repayments, and discuss options that are available for you, such as a temporary payment plan or deferment.
- It is also important that you also seek financial advice from a Certified Financial Planner as they can provide the expertise and guidance needed to get an accurate estimate of your monthly payments, and help you to identify how much of your financial resources can be put towards paying off student loans.
Whilst it may be difficult for university and college students and/or guarantors to manage student loan repayments but these strategies are key in making the repayment process easier and stress-free.
Here’s How You Can Choose A Student Loan:
When choosing a student loan, it's important to take a look at the different options, compare features, eligibility criteria, interest rates, and repayment plans, read the fine print, and consult a financial advisor.
Additionally, it is important to understand how much you will need to pay back over time and if you are comfortable with the terms.
