How to Get Help with Budgeting to Start Repaying a Student Loan

Repaying student loans is a big responsibility. Defaulting on your student loan could have major consequences down the road. A budget is your best defense against defaulting. These steps will help you find information on where to turn when you need to budget in order to start paying back your student loans.

Difficulty:

Moderately Easy

Instructions

1. Begin repaying your student loan according to the payment terms. Most student loans require that you begin payments within six months of graduation or if you drop below half-time enrollment.

2. When you graduate you will receive information about your repayment schedule. It is important to draw up a budget by the time you have to start paying back your loans.

3. Think hard about your post-graduate expenses. Things to include in your budget are fixed costs such as rent, insurance, utilities, and variable costs such as food, entertainment and phone. You should also set aside money for savings and medical emergencies. Add in your student loans and balance this budget with your income.

4. Consider debt consolidation as a way to pay back your student loans. Debt consolidation means that all of your student loans are combined into one loan, usually with a lower interest rate. It is a good way to ease the burden of paying back student loans.

5. Another great resource is a credit counselor. A credit counselor will help you draw up an airtight budget plan by making you account for all of your purchases. Counselors usually have other ideas on how to make debt more manageable.

Tips & Warnings

• Stick to your budget. If you live within your means, you will be able to pay back the student loan on time.

• Defaulting on a student loan will adversely affect your credit rating.

• Grace period for a Stafford loan is six months, and nine months for a Perkins loan.

• Consider debt consolidation. Combining all of your student loans into one bill is a popular option.

• See a credit counselor. Credit counselors can help you plan a budget and also give you other ideas on how to repay your student loan debt.

• Do not pay off your student loans with a credit card. The interest rates are much higher.