What are the ten easy way to repay student loans?
Paying off student loans is always difficult. However one should be judicious in making the right choice of repayment and try to finish paying off as soon as possible, else possibility being you might end up paying higher and unable to save for your retirement years.
Here are some easy ways to repay your loans:
a) Step-up repayment facility (SURF) – Repayment directly associated with increase in income annually, helping you save on your interest amount and not taking too much burden.
b) Flexible installment plan or Step-down repayment facility – Pay higher installments in the early years and reduce it with the years passing. Ideal when you are reaching retirement age thus helping reducing your load of repaying during your sun-set years depending on how many years you have opted for.
c) Tranche based EMI payment – This type applies for an under construction property. Installment to be paid till the property is ready.
d) Accelerated repayment scheme – Increases your repayment amount whenever you have extra funds. Repay your loan faster, increase whenever you wish to and save on interest.
e) Smart fix loan – in this the first 3 years will be fixed interest rate and from the fourth year onward pay on floating rate.
Read on for more easy ways to repay student loans.
f) Pay more – Make more payment towards the principle amount reducing your overall duration + interest thus reducing the no. of years on your mortgage thus saving your time and money.
g) Choose the right federal-student loan repayment plan – The federal system of loan repayment offers students a lot of flexibility such as easy repayments, break before you start your repayment, subsidized interest rates,
h) Employer loan repayment – some banks permit this for student loans. They give a brief period of time for students to get a job before they start their repayment. In this they even have provision that the employer to repay your loan with preconditions such as getting slightly lower salary, staying committed to your job, signing bonds etc. However this may be beneficial for both parties.
i) Consolidation – There is nothing wrong in consolidation of all your loans provided you choose the right payment method. Choosing a loser repayment scheme can be dicey as you may end up paying higher interests in the long run. Hence consider all your options before consolidating and choose that is best option for you.
j) Select auto deduction option – This is an easy way of repaying as you need not follow up each month and fixed stipulated amount gets deducted automatically from your account. Some banks even offer lower interest rates for such options where you can end up saving money.
This article has been compiled solely for providing information on how students loans can be repaid. http://gr8researchpaper.com is not affiliated with any loan providing or loan repayment assisting companies.