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Graduation Advice from UBT: What makes student loans go away?

May 18, 2016

Managing Your Money

Articles

Caught your eye didn’t we?

First things first, ignoring your loans will not make them go away. The best thing you can do is to figure out what you will owe and how much your monthly payment will be. The Student Money Management Center here on campus can assist you.

Once you understand what you will need to repay be a smart money manager and understand your options.

  • Loan Forgiveness
    There are special programs for those who work full-time in a public service job. Some jobs that qualify include teachers, government employees or non-profits.
  • Employee Benefit
    Some employers are beefing up their benefit packages with loan repayment assistance. When you’re interviewing, ask about the benefits package. This may help you when choosing between offers.
  • Standard Repayment
    You will pay a monthly fixed amount over the course of ten years.
  • Graduated Repayment
    Payments start small and increase along with your income.
  • Extended Repayment
    Depending on your income, you may be able to lower your monthly payment but extend the term to 25 years instead of 10.

There are a couple of strategies that can help you repay your loan faster or lower your payment. Refinancing your current loans at a lower interest rate may create a significant savings. Another strategy is to make additional principal-only payments. This will reduce the amount of interest you pay over time. You can either schedule an additional payment each month or do it occasionally when you get an influx of cash from a bonus or tax refund.

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This blog article is for informational purposes only, and is not an advertisement for a product or service. The accuracy and completeness is not guaranteed and does not constitute legal or tax advice. Please consult with your own tax, legal, and financial advisors.