Tips for Managing and Paying Off Student Loans

Did you know the average student loan payment is over $530 a month? At that amount, it’s no wonder borrowers are struggling to pay back their student debt. In fact, about 42% of student loan borrowers report that covering their loan payments makes it difficult to cover basic household needs.

If you’re in the process of paying off your loans, it can be disheartening to see your balance drop ever-so-slowly over the years. You may even find it difficult and frustrating to manage multiple loans and keep track of your separate payments.

Fortunately, there are simple ways to make the student loan repayment process a little less painful. Here are a few ways to improve the experience of loan repayment, and maybe even pay off your loans faster.

Know each of your student loan lenders

As a student loan borrower, it’s crucial to know who your lenders are, especially if you have both federal and private loans.

The policies of federal and private lenders are very different when it comes to repayment plans, interest rates, loan forgiveness, and many other details. Therefore, you’ll want to have detailed knowledge of the policies of each of your lenders.

When you understand their policies, you’ll be able to better plan your loan payoff. For example, you might decide to pay off high-interest private loans quickly while maintaining minimum payments on a federal loan that could qualify for a forgiveness program. Many federal lenders also have deferment or income-driven repayment (IDR) plans that private lenders don’t offer.

If you’re not sure where to get started with finding your lenders’ information, an NFCC-certified credit counselor can help you out in a student loan counseling session.

Organize your student loan details in one place

If you have more than one student loan, it is vital that you organize your loan information. That way, you can easily access and track the following crucial details:

• Lender name and contact info
• Key deadlines
• Balance
• Monthly payment amount
• Payment due date
• Interest rate
• Payment assistance programs

Unfortunately, it’s very easy to confuse one loan with another, and even to forget about the specific details of some of your loans. And if you forget to make just one payment, your credit scores could drop by as much as 80 points or more.

But with tools as simple as a spreadsheet and calendar reminders, you can stay on top of everything.

Understand how student loan payments fit into your budget

Can you afford your current student loan payments? If your finances are disorganized, there’s no way of knowing whether the payments are truly affordable.

Instead of just guessing what you can afford to pay, or hoping that you have enough money to cover payments each month, take some time to create a budget. And remember, a budget can be as simple as a list of all of your monthly expenses, including debt, compared to your income. If you’re not sure how to get started, an NFCC-certified credit counselor can help out in a budgeting session.

Once your budget is put together, you’ll be able to see if you have enough money for spending on things like vacations and entertainment, or if you need to cut back. This will also help you determine if you need to reach out to your student loan lenders for assistance.

Get professional help from a counselor

Lastly, remember that very few people have it all together when it comes to money. It’s normal to have hiccups and bumps in the road that cause stress and make it difficult to stay on top of your loans. 

If you’re struggling to manage your student loans, don’t hesitate to get professional student loan help from an NFCC-certified credit counselor. These counselors can support you in the following ways:

• Answering questions about federal and private student loans
• Discussing options like loan consolidation, cancellation and forgiveness
• Explaining new student loan legislation

Completing a student loan session can help you figure out your options, and give you a roadmap to get your finances on track. If you combine counseling with all of these tips for managing your student loans, you’ll be more confident that you have the best plan for paying off the debt!