Four Tips for Handling Your Student Loans
Student loan debt is one of the biggest financial issues facing young people today. At Maxwell Dunn PLC, we understand the burden this debt can cause, and the stress that comes along with it. We encourage those with student loans to be proactive in handling them and to get educated on their options. And this is a great place to start — read on to learn about some of our tips for handling your student loans.
1. Calculate the total amount that you owe across all of your loans.
Getting the big picture can help us better understand our situation, and understanding it is the first step in overcoming it! If you went to an expensive school, the total amount of your debt might be extremely intimidating and repaying it all might seem impossible. Just keep in mind that knowing the total amount that you owe is a necessary step toward financial success Don’t panic!
2. Familiarize yourself with the terms of the loan.
Is there a grace period after you graduate. What are your interest rates? What are the rules about how you should repay it? Knowing the answers to these questions allows you to make a plan that avoids added interest, penalties, or fees as much as possible. Again, awareness and understanding are key!
Once you understand your situation, you can start to strategize. Could consolidation be right for you? Might you pay off the loans with the highest interest rates first to lower the overall amount you will pay? Can you pay extra principal to be charged less interest? Does your loan provider offer a discount if you set up automatic withdrawal? Would an alternative plan like graduated payment, extended repayment, income contingent repayment, or pay as you earn better suit your life circumstances? These are all things to consider that can help you develop the strategy that is best for your unique situation.
4. If keeping up still seems impossible, consider contacting a bankruptcy attorney.
If your financial situation is more than you can handle, an experienced bankruptcy attorney can help you get back on the right track. If you’re not sure, set up a consultation to find out if this might be the right path for you. The attorneys at Maxwell Dunn PLC can provide you with extensive knowledge and outstanding legal advocacy. Contact us today! You can reach us at (248) 936-6390.