What is a Student Loan? A student loan is borrowed money that is repaid over the time once a student has completed their studies and starts a job. In addition to repaying the amount loaned, most loans also require an additional fee called interest. A student loan is used to pay for college or university costs.
Repaying a student loan can often times put you on the back foot before you’ve even stepped through the door of your first job.
How do I make repayments?
Once you are ready to start paying off your loan, you’ll be responsible for sending out monthly payments to the company or institute that you have taken out a load with.
You should have received all the banking details of the loan servicer upon approval, however if you don’t know where to send a payment, check with your college or universities financial aid office. You can then contact your loan servicers directly.
Tips to prepare for student loan payments:
- Use the grace period to research student loan repayment options and decide which option you would like to use
- Never miss one payment or this will set everything back
- Create a budget
- Prioritize paying off student loans
- Communicate with your loan servicer
- Set up automatic debit payments so that the hassle is out of your hands every month
- Avoid student loan default at all cost
- Give yourself a target to shoot for and set a date by when you would like to be finished with the loan
When must I begin repaying my student loans?
Most student loans have a few months grace period, which means you won’t have to start making payments until after you graduate and find a job. The grace period is meant to give you a chance to find a job and begin earning an income so enable you to pay off the loan made.
