Being late on student loan payments can negatively impact your credit score, making it difficult for you to qualify for loans, credit cards, and mortgages in the future. Although it may feel overwhelming, it’s never too late to get started on the right foot. If you are struggling with managing student loan debt and want to pay it off as quickly as possible, you can try three different strategies.
The college has made you want to go broke. You took out student loans to get an education, but now you’re paying your loans back instead of yourself. You work for minimum wage while your rent is due, and your student loan payments are late.
Making ends meet as a college student can be quite the feat. They are often left with less money than they started with each year between tuition, books, and living expenses. And when your student loans are late, the situation can become even more stressful.
Why is your Student Loan late?
Even if you’re not struggling with student loan debt, if you are struggling to manage your finances, it may be time to look at ways to improve your money management skills.
Did you miss the Student Finance application deadline?
Understanding the difference between a grace period and when payments become due is extremely important. If you miss your deadline, payments will start piling up 10%-15% higher each month. The later you enroll, the harder it will be to make up lost ground and minimize interest.
When should you get your Student Loan?
A student loan is a debt that must be paid back out of future earnings. If you are unable to pay, you may fall behind on your payments, which can impact your credit scores. Your interest rates may increase in extreme cases, and your payments could increase.
Are you officially registered at your university?
Are you officially registered at your university? Many schools require their students to register for their FAFSA (Free Application for Federal Student Aid). The FAFSA is used to determine a student’s eligibility for federal financial aid, including grants and loans. If you don’t register your FAFSA at a college or university, you may not receive financial aid. If you aren’t able to receive financial aid, then your financial aid won’t be available to pay your school bills.
Tips If Your Student Finance Hasn’t Come Through
You can borrow from the bank and your parents.
There’s nothing worse than receiving your student finance, only to find out that your bank account isn’t big enough to cover your tuition fees. So, what can you and your student do? Borrow from your parents, of course. Student loans, grants, and bursaries are there to help you study, and it’s up to you to make sure you get all the help you can.
You can make money online to tide you over.
If you’ve been waiting for your student loan repayments to start but still waiting for that money to come through, you might want to look into making some extra money online. Even if you’re in school, you can use your computer and some free time to make some extra money.
Borrow cash from friends.
Is your student finance not coming through? There’s still hope! If it hasn’t come through, you should be able to borrow the cash you need from friends and family. Check what’s available to you with student financial loans or alternative routes to funding, and borrow the cash you need.
You can start a mini business.
Student loans are one of the most stressful things about college. Many students worry about paying for tuition and books and how they’ll repay their loans once they get their first paycheck. If you’re a student and your bank account is still empty because your student finance hasn’t come through yet, don’t panic! There are ways to start a mini-business that can help you start earning some money right away.
Managing student debt is a challenge, but it doesn’t have to be overwhelming. If you’re struggling to make your student loan payments on time, you can do a number of things to make the situation easier. One simple step is to contact your lender and ask about deferment or forbearance, which can help you ease the burden of making loan payments. However, deferment and forbearance are only temporary solutions and don’t solve the problem of your student loan balance.