Managing Begins with Understanding: Key to Managing Your Educational Debt

Getting a good education requires a much larger financial sacrifice than it did in past generations. With tuition increasing year over year, student debt is becoming more crippling than ever for college graduates. Balancing loan payments and other expenses can prove to be a challenge despite the salary benefits of a college degree. Below are a few tips to help manage your college debt.

Calculate Your College Debt

It’s critical you begin your planning and budgeting with a firm understanding of the principal and interest you owe to your student loan lenders. Once understood, you can start the process of developing a plan to address your loan debt and determining the options available to reduce. Whether you consider loan consolidation or are eligible for a student loan forgiveness program, it’s important you explore your options and find a path that fits your budget and lifestyle.

Pay College Debt Automatically

Automatic payments are your best friend. Once established, it ensures you’ll never have a late payment and you’re on time payments will boost your credit score. Private loans come with hefty late payment fees to its critical you avoid at all costs (no pun intended). Also, many lenders provide discounts for automatic payment withdrawals so it’s worthwhile you enroll as soon as possible.

Know Your Loan Terms

It’s important you’re an educated borrower. Take the time to read your loan terms so you understand your repayment terms, interest rate and any penalties (especially those associated with earlier repayment). Learning the terms of your loan will enable you to create a short and long term plan that meets your expectations and financial needs.

Unfortunately, navigating your educational debt can be a daunting task. The KIG team can help determine the best path forward to paying off your debt as quickly as possible through a repayment strategy that aligns with your unique needs and goals.

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