Student loan debt exceeds credit card debt in America with approximately $1.2 trillion in outstanding student loans. College graduates completing their education are beginning their careers in thousands of dollars in debt. This crushing debt load follows them as they try to begin their careers, start a family and advance in their careers. Unfortunately, most student loans are non-dischargeable in bankruptcy.
Even though most student loans are not eligible for discharge through bankruptcy, debtors who file bankruptcy are able to discharge their other debts thereby allowing them to use that money to pay their student loans. There are other ways that you can manage your student loan debts to keep them from spinning out of control.
Tips for Managing Student Loans
- Read each student loan contract. The first step in managing your student loan debt is to understand the terms of each of your student loans. Student loan accounts may have different terms including minimum monthly payments, late fees, default conditions, interest rates and deferment options. Understanding the terms of each student loan account will help you manage your student loan debt more effectively. Reading the fine print may also help you if you face a financial crisis are you are unable to pay your student loan payments. For example, many student loan contracts have deferment options that cover a variety of situations such as job loss and medical emergencies.
- Make a list of all student loan payments. In order to manage your student loans, you must know what amounts you owe, when the payments are due and the minimum monthly payments for each account. It may help you to place the due dates on a calendar so that you can visualize when the payments are due in relation to your pay periods. This will help you budget your payments each month according to your income and pay schedule.
- Discuss repayment plans with your advisor. You can choose several repayment options from ranging from standard payments to graduated and income-based payments. Each type of repayment plan has its advantages and disadvantages. Discuss your repayment options with your student loan representative and choose the option that will allow you to pay your student loans while remaining current on your other obligations.
- Budget for your student loans. If you are not living with a monthly budget, you need to begin to do so immediately. The key to managing your money and your student loan payments is to create and live within a budget. Prepare a monthly budget that includes your living expenses, debts and student loan payments. Periodically review your budget and make adjustments as necessary to ensure that you have more money coming in than going out.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
If you are experiencing financial problems due to debt, contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
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