How To Settle Your College Debt
Because it is graduation time all over the nation, a lot of graduates are now getting into the corporate world. However, a greater majority of these graduates are also facing a larger task of paying off their student loans. This task is much bigger than finding the business-casual look or writing a perfect resume. In a recent study by the Bank of New York, it was found out that most college graduates have an average loan of more than $23,000. If the debt is not paid on time, any graduate stands to lose his credit rating.
Any student loan can be paid if you are organized. You have to keep a record of your student loans as well as the loan’s contact information, grace period, repayment status, and balance. If you can’t understand some loan terminologies, you can always check them online. It is also important to keep the original documents of your loans as well as the current billing statement. Also, you must make an effort to pay your loans on time because your FICO scores are affected if you are remiss with your payments. If you don’t know, your payment history makes up 35% of your FICO score.
When you move to another location, you must inform your lender. If you fail to inform your creditor, he may get irked and you may be slapped with cash fines. It is important to let your creditors know of your whereabouts. You must strive to pay your monthly dues. If, however, you can’t afford to pay off your monthly amortizations, you have to talk to your lender and ask for a deferment. You mustn’t be on default or delinquent in paying your loans. Usually, a lender will agree to a deferment if you reenroll in school, experience financial hardships, or are unemployed.
During these trying times, even law graduates are affected. Most of them are struggling financially and can barely make ends meet. Add to that the fact that these people owe at least $100,000 in student loans. It is very difficult for these graduates to gain entry-level employment. Because these graduates are facing these problems, it pays if they’ll follow the above tips so that their FICO scores won’t be affected.