Student Loan Repayment – How it works?

Student Loan Repayment – How it works?

OMG!! I have taken a certain amount of loan during my graduation and now the time has come for its repayment! What to do? How to clear it quickly? Will I be able to repay it on-time? I am still in a process of job hunting, would I be able to manage it? Are there some simple ways for the student loan repayment? Such type of queries occurs in a student’s mind and they obviously get panic. But there are several options available by which students can make the payment easily without any burden.

Some of the general ways that anyone can go for are as follows:

Cutting down the unnecessary expenses

Making a daily budget plan

Taking tuitions

And many more options are available which makes your life easier and will help you to repay the loan at an early level.As we know that there are afew lucky ones who immediately get a job after their graduation. Therefore, it becomes difficult for them to digest the stroke of loan repayment. Even those who get placed in an organization, they too suffer from the loan repayment pressure as it’s not like in their first month itself, they can clear all their debts. It takes time to settle and then gradually the student gets accustomed to this new journey of life and he/she learns to save money and keeping it aside for the loan repayment.
Apart from this, there are some other plans also available which will make you wiseabout easy loan repayment ideas.

Let us now learn about the 3 plans which will make you free from the debt and will help you to concentrate on your future plans

1.Income-Based Repayment (IBR)

2.Pay As You Earn (PAYE)

3.Public Service Loan Forgiveness (PSLF)

Income-Based Repayment: In this plan, if you get a job, a certain amount of your income is restricted by the IBR. Limit of 25-year duration is allowed and the rest of the money is forgiven. This is one of the best options towards which the students are inclined more. To know more about it in details you can visit this will surely provide you with detailed information.

Pay as You Earn: Here, a margin is being set which determines that X amount of money will be affordable to pay to you as your annual income is above 150%. But in case if the scenarios are contrast i.e. your income is not sufficient and is below the above stated amount then your loan payment will be zero.

Public Service Loan Forgiveness: This is beneficial to those who are working in government sectors. This will forgive your remaining debt after 10years of eligible employment.
These are some of the loan repayment plans which you can choose accordingly. An expert advisor will also be a good option to overcome from the loan burden. A professional will certainly give you many more brilliant ideas which will be easier for you to implement. Agreed that paying student debt is little bit a threatening process, but proper guidance and experts advice is the key to clear the loan at an earliest.

Orungootan Kabusa is a 2 ft. & 60 cms tall Orangutan. He runs a student organization named thestoodent which provides student loan repayment, student loan calculator, and student finance for the students that need help in education. He believes Orangutans can change the world and not humans!! You can meet him on Facebook, Twitter & Pinterest.