7 Ways to Prepare for Your Graduate Loan Repayment
December 7, 2013 by Gmat
Graduate students believe that graduating from a college marks an accomplishment, a culmination of semesters of writing, extensive study and successful test-taking. However a few weeks after graduation, most students realize that the graduate loan they borrowed for their studies comes biting back at them. The grace period given by lenders, usually six months, run out faster making it even harder for the student to think straight on how they must repay their graduate loans. The following seven steps can help you as a graduate overcome this crisis.
1. Track down your loans
If you have a pending federal graduate loan, it’s important to track to find out your loan amounts. This is because some students take over a year to track down their loans since. This could be as a result of other personal loans from other financial entities making the student forget his/her graduate loan. However, private loans might trigger a follow up by the lender.
2. Communicate with your loan servicer
While still on your grace period, begin dialogue with your graduate loan servicer since within this period, it won’t cost you anything. This will ensure that details on your contact information will be up to date and ask any other aspect that might be confusing about the loan.
3. Start budgeting
Financial experts advice that understanding your overall student loan budget should be done within the six months of gracing period. Factor in loan repayment estimate into your personal budget of money coming and going out expenses and incomes. You can start repaying your loan within the grace period.
4. Explore repayment options
The standard repayment period for student graduate loan is normally ten years. If you are repaying your graduate loans you should know that this is not the only option, this period can be extended. However, most students are not aware of this. The lack of this knowledge cuts universally across all demographic entities. This relieves the students of the federal loan burden’
5. Make plans for interest repayment
Unsubsidized graduate loans accrue interest throughout the grace period and even though you are not required to make repayment at this period, it’s wise that you make a prudent plan to repay these interests. These accrued interests are capitalized at the end of your grace period and added to the principal loan. This further increases your debt; therefore make repayments for interests on unsubsidized graduate loan interests during the grace period.
6. Seek out your financial aid officers
After graduating, your financial aid office might still be open to your repayment questions while still in the grace period and into your repayment term of your loan. Majority of students are not aware of this. Financial aid officers are also open to alumni, friends of the university, and more so to the students. These officers give advice and possible solutions to your repayment stalemates.
If you feel that you are not capable of repaying your loan in time, do not panic. Utilize resources by visualizing the long term period of your repayment; this can ease the initial stress of repayment methods. The fact that you are beginning repayment down the road might help you relax.
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