A student loan is borrowed money that is repaid over time once a student has completed their studies and starts a job. In addition to repaying the amount loaned, most loans also require an additional fee called interest. A student loan is used to pay for college or university costs.
Repaying a student loan can often times put you on the back foot before you’ve even stepped through the door of your first job.
How do I make student loan repayments?
Once you are ready to start paying off your loan, you’ll be responsible for sending out monthly payments to the company or institute that you have taken out a load with.
You should have received all the banking details of the loan servicer upon approval, however if you don’t know where to send a payment, check with your college or universities financial aid office. You can then contact your loan servicers directly.
Tips to prepare for student loan payments
- Use the grace period to research student loan repayment options and decide which option you would like to use
- Never miss one payment or this will set everything back
- Create a budget
- Prioritize paying off student loans
- Communicate with your loan servicer
- Set up automatic debit payments so that the hassle is out of your hands every month
- Avoid student loan default at all cost
- Give yourself a target to shoot for and set a date by when you would like to be finished with the loan
When must I begin repaying my student loans?
Most student loans have a few months grace period, which means you won’t have to start making payments until after you graduate and find a job. The grace period is meant to give you a chance to find a job and begin earning an income so enable you to pay off the loan made.
