Understanding the Student Loan Repayment Calculator
Students loans are VERY beneficial to any and student and are becoming an essential part of college life today. At first, the loans were not so popular but now years later almost every college student applies for this loan to assist in paying their tuition fee.
College education life can be challenging, and expensive especially if you don’t come from well-off family.
Various lenders offer the student loans at different rates to start repaying once you complete your learning. The state also provides the student loans at cheaper interest rates but you can decide whether to go for the state loan or bank loan.
Student loans are of two types which include;
1. Federal loans
These are student loans provided by the state and almost every student possessing high school diploma qualifies for the loan. You only need to apply for the loan using the right procedure and channels and when times comes the cash will be disbursed to the college finance account.
Federal loans are divided into three; direct plus and direct loans made for graduate students and parents, the other one is Perkins loans which charges low-interest rates and only undergraduates and graduates are eligible.
2. Private loans
These loans are offered to students by private financial institutions and banks. You can apply for the loans with your parent or a guarantor. The amount and interest depend on your credit score or that of your parent.
The repayment options for these student loans are very friendly but the interest rates are higher than that of federal loans. Sometimes you may not get these loans depending on your credit score or due to other reasons the financial institutions may sight.
When can you repay your student loan?
In many cases, the student loan lenders give you a grace period of six months after graduating before you start repaying.
The period gives you a chance as student to look for job or any means to start earning for you to easily repay the loan.
Sometimes if you have the private student loan you can negotiate with the bank on the grace period or the methods of repayment. Within the grace period plan on how you are going to repay, create a budget and set a repayment target to ensure you pay it off within a short time possible.
How to calculate the amount of student debt you need to repay?
Many students have a challenge in calculating the amount of student debt they are supposed to repay their respective lenders. There are various loan calculators available online and a majority of financial institutions have their calculators on their websites or applications.
These online calculators are easy to use and you can use them to calculate any loan not only the student loan. You can calculate your student loan using the following procedure;
First, if you don’t have the loan calculator on your smartphone, download it or if you prefer search online for one similar to the one in citation below. Once you have the application log in and go straight to the loan calculator option.
Here you will have to feed in your current loan balance, repayment term, and the interest rate. Ensure you have the correct information for you to get the right results that will help you in planning how to repay the loan.
Once you have the information feed the loan balance on the loan amount option, repayment time or period and interest on the subsequent options.
Most will have different calculate options, clicking on the calculator will automatically calculate the loan amount you have to repay. In case it displays what you have to repay per year convert to months to know what to repay per month.
After the calculations now budget how you are going to repay your student loan and if you can repay the debt within a short time the better for you. Engage your lender to come up with a repayment plan that you will be comfortable for you.
How to repay your student loan
The end of the grace period means that you have to start repaying your student loan. Different lenders have various methods you can use to repay your debt.
Some financial institutions will accept any payment method such as visa or cash deposits. In case you are not sure, you can confirm with your college financial aid office to help understand how to repay your debt. Engage your lender to adjust your payment date to come after you get your salary so that it becomes easy for you to pay on time.
What to do when you can’t afford the monthly payment amount?
It’s possible that you won’t get a good job to enable you to repay the monthly deposits easily. The lenders understand financial situations and if you engage them they will give you a plan that will suit your earnings. However, if you're inclined to think outside the box a little, you can make money online like so many of the members here are doing.
The best thing about it is it won't cost you a cent and as you'll see there's no reason why you can't make 4 5 or push through to a six figure income. You may even find a few of our members here at Wealthy Affiliate finished their college education and just stuck to growing an online business as it gave them freedom.
Understanding the amount of money to repay your lender will make it easy for you to plan on how to repay the student loan in time. ... but putting what you can learn here for free into action may have you never worrying about loans ever again!
If you want to try earning money online, just talking about things you love... and not have to search for the last bar job in town, sign up for you free starter account. Chat to those here and take a good look around. Having your own online business is a great way to earn passive income.
Plus financial payback and success may be quicker than you think!