Nine Tips for Student Loan Success

Michael Lux Blog, Student Loans 0 Comments

Whether you are thinking about getting student loans or already have student loans, making wise decisions can save you thousands.  Here are nine tips that everyone should know.

  1. The Pay As You Earn Plan is the way to make your dollars go the furthest – it may not be for everyone, and everyone may not qualify, but if you find yourself in a student loan mess, it can be the life saver you need.
  2. Don’t be a jerk on the phone – no matter who you are talking to or what your problem is, there is no excuse to treat someone like crap… plus, doing so will only hurt your cause.
  3. The six month “grace” period is not all its cracked up to be – your lender may not be sending you a bill right after you graduate, but your debt continues to grow during those “free” months.
  4. Student loan debt is not “good debt” – Its one of those myths that has been around long enough that people start to believe it.  There is no such thing as good debt, they are all bills and they all have to get paid back.
  5. Understand that these loans will not just disappear – bankruptcy may make many forms of debt disappear, but it will likely leave your student loan debt alone… your lenders will have much less incentive to help you out.
  6. Don’t let student loans ruin your good relationship with your cosigner – this person is helping make college a reality, and they are likely a member of your family.  Mixing family and money can spell trouble… keeping everyone on the same page is the key to success.
  7. Consolidating your loans can save you money… and increase your credit score! – It may not seem logical, but if you consolidate your student loans, it can actually make your credit score go up.
  8. Paying off student loans is a huge goal… set goals along the way to chart your progress – doing so helps turn a huge task into smaller more manageable tasks.
  9. Use your student loans to your advantage during tax season – Student loans may be a big pain, but paying tuition as well as student loan interest can you make for a happier April 15.