Estimating your student loan repayment is often overlooked as part of the college affordability decision. How to pay federal loans back is a topic that is getting a great deal of press now. Student loan repayment debt is skyrocketing and many young adults are not getting the jobs or salary they were hoping for after graduation. This is a problem you need to consider before taking on the student loan debt. We think it is important to do a four-year cash flow and projection of the debt. This helps identify the financial quality of life after graduation.
The good news is that federal government offers student loans repayment options. The government has created some repayment plans that help students stay current and avoid default. The most important part of the student loan repayment process is staying current. The difficulty is that these plans are only available for federal student loans. Parent PLUS and private student loans do not have these same repayment options.
The repayment process can be overwhelming in other ways. There are currently 8 different methods of repayment to consider. Based on the major you select and your career path selecting the correct repayment method will impact your student loan forgiveness.
As stated throughout this website, properly planning for the outcome of the education is critical. Understanding the purpose of the education and the quality of life that it will bring is all part of the college affordability decision. With advanced planning, taking on high levels of debt may be justified. Knowing that your career will support the higher loan repayment or be eliminated with student loan forgiveness can be planned. By doing this you will improve your overall financial life.
The how to pay federal student loans video covers:
- Loan inventory process
- Review of the 8 methods
- Best practices of repayment
- Impact of private student loan repayment
Having knowledge of the loan repayment process before you take on the loan is a good idea. Our college financial aid service can help you with the entire college funding and loan repayment processes. Please visit our Services page.