Ways to Manage Student Loan Debt Efficiently

Student loans can be quite daunting. However, you can manage them effectively using some of the strategies for handling student loan debt below.

Know the Numbers

The first thing you need to know is the basics of your loan. Here are a few things you should know:

• Total debt amount
• Repayment period
• Repayment options
• Terms of the loan
• Interest rate 

Make it Automatic

Make sure you are set up to make automatic payments on your loan. It’s easiest to just set it and forget it. This helps you never miss a payment and some service providers give a slight discount when your payments are on auto-pay.

Repayment Options

Now that you know your numbers, it’s time to consider your payment plan. Here are some ways you can make your payments more manageable:

• Graduated Repayment. Increases your monthly payments every two years. You pay less at the beginning, and more as time goes by. This plan is good for those just starting in their careers. 
• Extended Repayment. This plan extends your repayment period, which allows you to pay less per month. However, remember that means you’ll be paying more interest because the repayment is now 20 years instead of 10 years. 
• Income-Contingent Repayment. This plan allows you to pay based on your adjusted gross income. After 25 years of repayment, any other balance is forgiven.
• Pay as You Earn. This plan is typically only approved for people with financial hardships. It allows monthly payments at 10 percent of your monthly income for up to 20 years.

Do One Thing: Explore all the student loan repayment options and choose one that fits your budget and goals.