As a parent, it is very convenient to sign up for a student loan payment on autopay. Anytime when you make loan payments, it reduces the burden of what you owe in the long run. Making payments on time will improve your credit history and keeps you in good books of the lender. The autopay option is the easiest and fastest way to keep your student loan repayment program updated. The service automatically withdraws the loan amount from your savings or checking accounts on a specified date and avoids you from late payment penalties.
It’s smart to keep an eye on the lender’s website to re-examine and remain aware of the updates which could save you from missing opportunities to save on loan interest. But that doesn’t mean that you need to check in every day or every second week- but to remain alert whenever these life events occur.
Interest Rate Fluctuations Are In The Headlines
Private loans are variable in nature, which means their interest rate fluctuates in the wider market. Whereas, disbursed federal student loans interest rates are fixed, which means there is no rise or fall in the rates for the life of the loan. If you’re smart parents, you must keep an eye on the interest rate changes. It will help you to consider favorable refinancing options.
New Rules Imposed By Legislation
The Student loan has been in debates in this year’s presidential election. Anytime when you come to know about the changes in college debt and its repayment rules and regulations, you should check your loan to know if any of the changes applies to.
You’re Planning To Buy A House
Your decision to make a big purchase, such as a car or house, can become crucial for your student loan repayment plan. This is because the monthly payments you make and the amount you owe can affect your credit score and other types of financing. How much money the financial institution will lend you depends on your credit score and obviously on your student loan plan. To improve your debt image, it is advisable to change the payment plan or refinance the student loan.
You’re Struggling To Make Both Ends Meet
During the repayment of your student loan if you find yourself struggling, then you should examine your finances and loan to check if you qualify for a forbearance. Deferment doesn’t mean that you can sit back and relax, but it could reduce you some of the pressures for the particular time or until you get back on the track.
You’re Making Financial Plans
Whether you are revising your budget or making a new one, this is the best time to check how student loan fits into your overall plans and financial goals. It is not an intelligent approach to make your loan repayment and then forget it to include in your next budget. Adopt a questioning approach when preparing a budget for your family, for example, ask yourself a question, would credit card payments with high bank rates save you more rather than making your student loan higher repayment.
You Get A Promotion
If you can see an increase in your status and salary or you experience a windfall, in both cases, determine your ability to pay your student loan and other types of loan faster. Consider whether your income increase will significantly make any difference in repayment plans. For example, if other interest you pay is higher than your student loan interest amount, then it is the more sensible approach to direct your extra income to those kinds of loan which have higher interest rates.
The Six- Month Approach
It is a good practice to visit your lender’s website at least a month or if not, then at least six months to know about any updates or favorable changes such as updating your email id, changing passwords, reviewing the lender’s message, if any, and updating your physical address. Check-in every six months because a lot can happen during this period.