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Student Loans – Handle The Repayment With Five Handy Tips

October 01,2010 by: Dallas Browne

College years are the most beautiful and interesting time in a person’s life. For some of them, the college ambition is achievable only through student loans. Obtaining student loans are challenging enough by itself, but the real difficult part comes with the loan repayment process. While student loans empower students to learn from college, most of them land in debts unable to pay off their loans. Careful planning and cautious spending habits are two most necessary things to get past the phase and successfully pay off the student loans.


Thorough research to obtain loans from source that charges the lowest interest rates will definitely help in the long repayment process. Most students are unable to pay off the loans, due to the high interest rates that accumulate over the time. Make a thorough research of all the available sources and consider every detail of the loan plan. Most money lenders offer a deferred payment option where you don’t have to worry about the repayment until after the college. Search for a fixed interest plan, that doesn’t change for the entire duration of repayment.

Government loans

Applying for government loans are worth a shot because of their attractive loan plans. Government loans charge much lower interest than outside market and their repayment options are far better than other money lenders. You can show your financial need and get the loan for almost zero interest rates. This helps in the repayment process and lower interest means being debt free much sooner.

Spend cautiously

The most important of all factors affecting the repayment of loan is overspending the money. Understand what your requirements are, before applying for the loans and as much as possible work out a budget. Obtaining loan only for the amount required, will help to repay the loans sooner. Prudence is the key here, so find out alternatives for expensive books and boarding. The more money you save up during college, the more sooner you will be debt free. If you do not utilize all the money you obtained as loan, the burden while repaying it back will be reduced considerably.

Consider Consolidation

Most students borrow money from different sources during their college years. Sometimes the sources are more than three. Different money lenders have different repayment policies and different interest rates. Keeping tab with all these might be difficult and repaying them to different sources might not be very comfortable. Consolidation of loans can be a very useful step during the repayment process. Consolidate all your loans from different sources onto a single account, preferably the one with the lowest interest rate. That way, you will have complete control over the repayment process since it is much easier paying back to a single source.


Forbearance can be an option if there is a financial crisis and you cannot repay the loan for the time being. Forbearance means you can defer the loan payment for a short period of time until you come out of a financial crisis and plan some method to repay your loan back. But Caution must be taken as this option is only for a limited period of time before you will have to start repaying the loans.

Student loans are an unavoidable part of college life for most of us. Repaying them will not be a bitter experience with some financial planning and cautious spending.

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