Tuition.io was recently featured in Forbes: 10 Steps To Millennial Financial Success.
Create a strategy for your student loans: “A lot of people are looking for help navigating their student loans,” Bera says adding, “They are really complicated. You take out multiple loans over time and you break them up by semester. So you could be graduating with eight to ten different types of loans with different interest rates.”
Bera isn’t a fan of consolidating loans – taking out a new loan to pay off all of the smaller loans – because the interest rate you’ll pay is an average of all the interest rates on the loans, which is rounded up. Instead, she says, “if you have a manageable amount of student loans and you’re making decent money, chose the standard package (10 years) and find out highest interest rate loan and pay that off more aggressively first.”
For those with higher levels of debt, she advises looking into income-based repayment plans, in which you pay a percentage of your discretionary income. (Information on these can be found at the Federal Student Aid website). These plans, she says, usually offer a grace period before you have to start repaying the loans so you can “use that time to build up emergency savings and get out of credit card debt. If you can do that before your student loans kick in you’ll be in a much better position to repay your loans.”
She also likes the site Tuition.io, which allows you to track your student loans and see how much sooner they could be paid off if you were to increase your monthly payments.
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