The Importance of Planning Early
It's easy to get caught up in the excitement of college life and forget about the future. But when it comes to student loans, the earlier you start planning, the easier it will be to manage repayment later. While you're still in school, it may seem like your loans are far off, but having a clear plan in place now can save you from stress down the road.
1. Understand Your Loan Terms
Before you start planning, make sure you know the details of your loans. This includes the interest rate, whether it’s a federal or private loan, and when payments are due. Most federal student loans have a grace period (usually 6 months) after graduation, but interest may accrue during this time. Knowing these details will help you estimate how much you’ll owe once repayment begins.
2. Consider Paying While in School
Though it’s not required, making small payments while you're still in school can help reduce the amount of interest that accumulates. Even paying just $50 or $100 a month during school can make a big difference. It can reduce the balance on your loans, lowering your monthly payment after you graduate.
3. Take Advantage of Interest-Only Payments
If you can’t afford to pay down the principal while in school, look into making interest-only payments. Many federal loans allow this during school, so you can avoid having interest capitalize and add to your loan balance when you enter repayment.
4. Explore Income-Driven Repayment Plans
If you anticipate that you may struggle with payments once school is over, explore income-driven repayment plans. These plans set your monthly payments based on your income and family size, making your loans more manageable after graduation.
5. Use a Loan Repayment Tool
Staying organized is key to managing your student loans effectively. Tools like Life Planner can help you track your loans, see how much you owe, and estimate your payments. The app's loan tracking and amortization features will allow you to make informed decisions and monitor your progress over time.
Plan Ahead with Life Planner
The Life Planner app is the perfect companion for managing your finances while in school. With its budgeting tools, savings goal tracking, and loan tracking features, you’ll have everything you need to stay on top of your student loan repayment plan. Plus, the app's loan amortization and lender tracking features help you monitor interest and principal payments, giving you a clearer picture of your debt journey.
Ready to Take Control of Your Loan Repayment?
Don't wait until after graduation to start planning for your student loans. Download the Life Planner app today from Google Play or the App Store. With the Life Planner app, you'll be able to track your student loan payments, set up savings goals, and manage your budget all in one place. It's the best way to ensure you’re ready for loan repayment when the time comes.