Don’t Let Your Student Loan Become a Burden
At the time of writing, it takes about 14 years for an engineering graduate with a $56,000 starting income to pay off a HECS-HELP (Higher Education Contribution Scheme – Higher Education Loan Programme) debt. However, the Australian government is intending to raise the interest on student loans to about 6%. This change will result in the same student taking 29 years of working life to pay off the debt.
Across the Commonwealth, current and past university students owe $26.3 billion HELP debts. A report further indicates out of that figure about $7 billion will not be repaid. Some students have outstanding university loan debts of $200,743, $244,198, $248,078, $313,308 and $413,252.
Due to this huge debt, some students have disappeared overseas, stuck below the $51,309 threshold for compulsory repayment of student loans, left college before completing their studies or simply decided to stay away from the workforce.
As the government and academic institutions pressure students, the victims are left on their own. They are pushed into solutions with dire repercussions such as debt agreements and bankruptcy.
Your student loan should not push you to financial difficulty
With the right tips and help from professionals who have helped countless students to repay their loan and meet their daily financial obligations without leaving the country or going below the radar forever, any student with a loan to be repaid can do so too. You can repay your loan in a record time, faster than you ever thought possible. A debt expert ensures you will find the best solution both for your family and yourself. The stress of your loan weighs can mean that you lack the clarity of mind to weigh up your options objectively and so a professional may help you in discovering that there really are solutions out there.
Get expert advice
To ensure your help debt repayment is clearly thought out, start by making the most of debt experts who offer free consultation and estimates of how to deal with your debt, insight on debt consolidation solutions available, debt agreements and how they can help advise on personal insolvency agreements, as well as negotiating with your creditors.
At the end of the day, not everyone wants to push a graduate with a loan to pay to repayment levels that they can’t afford.
Don’t ignore your debt
It may sound unrealistic but this is one of the biggest mistakes students make. Simply because you are not seeing the debt before you on a daily basis it hardly means that it will magically be repaid. Know how much you owe and at what interest rates it is being charged. That way you’ll always know exactly what you have to repay.
Understand student loan repayment guidelines
Ensure that you understand your graduation school loans and are aware of how much you owe. Keep tabs on when the repayments are due and what the minimum payment is, including the amount you intend to repay monthly.
Repayment means sacrifice
To meet your goal of being debt free and ensure the government and concerned institutions are not breathing down your neck you must make a few sacrifices.
Come up with a timeline of the amount you will repay and do all you can to follow the plan through. Perhaps you might want to avoid investing on VIP cable, BluRay DVDs, games consoles or other items that should really be considered as unnecessary luxuries (for the time being, at least).
There are affordable ways of ensuring that you don’t go without, but you have to set your goal and manage it through reasonable sacrifices.
Pay extra if you can afford it
Any time you have the chance, you might want to repay more than the minimum payment to accomplish your goal faster. The quicker you can whittle your loan down, the less interest you will have to pay tomorrow.
Begin repayment immediately
In case it is possible, don’t wait until the grace-period has elapsed to begin making payments. Once you have received your first salary, make payment. After repaying promptly and making it a habit, the interest you will pay will lessen. Being disciplined with your repayments is essential if you’re to avoid additional charges.
Live within your means
After leaving university or college, your salary will increase and chances are, compared to your student years, that you’ll have a better standard of living.
Even though this may be the case, you are better off living below your means. The extra income can then be channeled towards paying the extra loan.
Student loan debt is very stressful but once you have completely repaid it, you will be able to enjoy your increased disposable income guilt free.
Keep track of your repayments
Closely monitoring your student loan payments and seeing your declining balance will ensure that you’re kept motivated in continuing to reduce your outstanding loan.
Above all, you do not have to go through this tough period of your life alone. A debt specialist will not judge you and will provide professional help to improve your financial situation so you can start enjoying life again as swiftly as possible.
Student loans can be an asset
A student loan is a great way to be able to afford to pay your way through university or college. Like any loan, you need to manage it carefully to ensure it doesn’t become a burden in the future. If you keep track of how much you owe and repay the loan as quickly as you can, a student loan can be an asset.