While living in student apartments in West Campus, Austin, student loans may feel like a problem for the future. But we also know many UT Austin students worry about student loan debt far before they ever move out of their UT student living. Data shows that the average student loan debt for members of the Class of 2017 was $39,400 and tuition rates have only grown since then. That’s a lot of money for an education and can leave graduates stressed about finances, even in a healthy economy. But having a plan to manage your loan payments and other expenses will ease your concerns.
Below we’re shedding light on a few ways to help you tackle your student loan payments. Oh, and when you’re done reading through it, please be sure to send this blog post to your friends.
Know Your Interest Rates
If you use loans to pay for college then you’ll likely pay interest on the amount you financed. Depending on the type of loan you took, interest may have started to accrue as soon as the loan was disbursed or will begin to accrue a few months after you graduate.
Interest rates will vary by loan. It’s recommended to pay off your loans with the highest interest rate first to avoid paying too much more money out of pocket for your education. This is also a strategy to keep in mind when paying off other things like a car or credit card debt.
Set Up Automated Payments
Paying down your loans on a regular schedule will help you budget accordingly. Additionally, setting up automated payments will ensure your loans are always paid on time. Missing payments can incur extra fees and harm your credit score, neither of which is good for your financial health.
Some lenders will even incentivize automated payments, so taking the time to look into automatic payments can really pay off. Even if it looks like a very small percentage, it will work out in your favor in the long run.
Prepay Your Loans
This option might not work for everyone, especially during today’s impacted economy, but if down the road you reach a point where you are financially stable and have the money to do so, it may be worthwhile to pay off more of your student loan debt than you are strictly required to. Paying off more than your minimum will allow you to focus on minimizing interest payments. Most lenders will allow you to select the specific loan you want your extra payments to go toward.
Prepaying your loans can also be a huge help in the event you run into financial issues down the road and can’t afford your monthly payment. If your loans are paid ahead then it will reduce the risk of defaulting.
That’s it for our student loan tips! If you’d like to see any future tips and recommendations from us in the future, make sure you bookmark our blog page for easy access to upcoming posts. Finally, if you don’t want to miss out on special promotions, community updates, and events at our apartments near UT Austin, follow us on Instagram!