My Goals with this Blog...

Are to document my experiences with various income streams and programs in my quest to becoming a full time freelancer working from home. I plan to list my current 'eggs' and to post the things that have and haven't worked for me.

How to manage student loan debt

Posted by tehblogging trolless | 6:45 PM

This is an awesome guest post that landed in my inbox by Jonny Pean. It was so useful I had to post it. If any of you out there have related articles you'd like to share, hit me up by email! ~DS


How to manage student loan debt - Effective tips for the students

Description – This article is about some useful tips and strategies on student debt repayment.

Due to the sky-high cost of education, most parents have become unable to bear the costs of their children’s education and as a result, students are doing part-time jobs to furthering their studies. But even after that, sometimes it becomes really difficult for the students to cope with the mounting education expenses. Under such circumstances, they often take out loans, which are commonly known as student loans. Student loan is something that most students in America need to borrow to continue their education. Since such loans are long-term loans which can be stretched even up to 3 years, the borrowers often need to pay huge amount of money in interests. Students in American often fail to repay student loan either due to high interest rates or unemployment or other reasons.

Tips to avoid huge student loan debt

Huge student debt is going to be the most imminent debt bubble to burst in the country. However, by following some easy tips, students can easily repay their loan and prevent themselves from being knee-deep in debts. The tips can also help students keep the debt under control, while they are striving for an employment or facing financial hardship to repay the loan.

Know the loan properly – This is very important that you know your loan including the amount, interest rate, repayment status, loan balance etc. very well. Each of these particulars is significant in order to quality for flexible loan repayment option as well as loan forgiveness programs. Should you’re not aware of them, you may ask the lender. You can log on to for federal student loan. In case of private loans, you may use the recent bill statement or the loan agreement. Make sure you don’t misplace such papers.

Inquire about grace period – Every student loan, whether federal or non-federal, gives a certain grade period. This can be defined as the period of time between you leave your school and make the first repayment. Generally federal loans offer a grace period of 6 months. But in case of federal Perkins loans, it is of 9 months. For non-federal loans it differs by the lenders. Therefore, make sure you know the grace period of your loan. And also make sure you don’t skip the first payment.

Be in touch with the lender - Make sure you intimate your lender whenever you change your contact number or contact address or email id. Unless your lender knows your present contact status and fails to contact you, it may cost you a lot. Read every mail, whether paper mail or email, you receive from your lender. If you miss any payment and thus get call from your lender’s office or collectors, directly visit the office of your lender and talk to them to resolve the problem.

Choose the best repayment option – In case of federal student loan, there are different repayment options to avail other than standard 10-year repayment option. By extending the repayment period, you can lower your monthly payment significantly. However, it may require you to pay much more in interests. You can also choose the income-based repayment plan and make your payment according to your yearly income. This program also forgives any payment due after 25 years of regular payments. However, this option is not available for non-federal student loans.

These are just some of many useful options and tips of paying off outstanding student debt. You can use any of them or browse the Internet for more options.

Author’s Bio – Jonny Pean is a senior finance advisor who presently works for He helps people by giving useful advice of loan repayment.