You recently completed one of life’s highest achievements, graduating from college. Now that you are beginning this new chapter in your life at your first fulltime job, you likely have not thought about paying your student loans off yet. Although there is a six month grace period before you have to pay the loans off, the time is quickly approaching. Iowa State Bank is taking the time today to write about how you need to prepare to pay student loans off.
Preparing to pay student loans:
- Communicate with your loan provider. You may be receiving emails about the status of your loans, but once the time gets closer to the ending of your six month grace period, get in contact with your provider. This will give you a chance to ask questions and clarify your payment plan.
- Start saving money. This seems like an obvious way to prepare to pay your student loans, but you will not realize the importance of saving until student loan payments come around. Always plan to pay a little more than the monthly minimum. By saving money now and paying a little more off on your loan, you can save in interest later.
- Make payments on interest now. Even during the six month grace period, your unsubsidized loans are collecting interest. Depending on your rate and amount of loans, this could add hundreds of dollars. Figure the interest and start making those payments now, if you can afford to do so.
- Stick to a budget. With your first fulltime job, new responsibilities and loan payments around the corner, set a budget for yourself each month. Within that budget, be sure to save the maximum amount possible within your earnings.