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Tips To Pay Off Your Student Loans Quickly

Tips To Pay Off Your Student Loans Quickly
Created By: Casita Teamon 08 November, 2021

If you have always dreamed of studying abroad, but you keep thinking that it is too expensive and don’t want to ask your parents for money? There are different solutions out there. One of them is to get a student loan. Banks all over the world offer student loans; however, terms differ from a country to another. If you are an Indian student looking for a student loan, check out Casita X services and apply for a student loan with Casita. We have partnered with the best education loan providers in India to help you move forward with your study abroad journey, and if you are worried about the repayment stage, here are 6 tips to help you out.

1. Calculate Your Debt 

If you took more than one loan to complete your education abroad, you need to be aware of how much you owe and the interest rate of each loan to avoid any surprises. Check how much you get from your salary and calculate how much you need for your monthly expenses and other loan payments, Be sure to keep checking how much you have left to pay and see if it’s worth paying in advance. This way, you can avoid having to pay more interest. 

Student Bank

2. Review the Grace Periods

A grace period is a no-pay period that students get after graduation, and it differs from one bank to another. If you intend to study abroad in a highly competitive environment, chances are you won’t find a job quickly. This means you will have to ensure you have the longest grace period to only start paying back your debt only when you start working. 

3. Compare Loans

Different banks offer different options. To decide on the right loan, you have to be aware of the best option out there. Then, compare the interest rates of the different loans, the highest amount you can borrow, and the grace period you have until payback before moving forward with your plan. 

4. Consider Consolidation

If you are sure you will not be able to repay the loan on time, you can postpone payment through consolidation, which means paying back via combining more than one loan together. Of course, consolidation is not the best option; however, if that is the only option you have, it is worth a try. Be sure to talk to your Bank even before you miss a payment; they will help find a solution.

5. Hit Higher Loans First

If you have more than one loan, set a repayment plan by first targeting the loans with higher interest. For example, if you have a loan with a 4 % and one with a 3% interest rate, add the largest sum of money to the one with 4% of the interest first. Try always to pay some of the premium amounts whenever you can as well. This way, when you are done, the only one left is the one you can play as slowly as you can. 

Student Loan

6. Pay Automatically 

If you are not sure you can manage your budget effectively and make the payments on time, it might be a good option to ensure your salary is transferred to the same bank you took the loan from. If so, you can easily ask the bank to create a direct debit, so your loan payment gets done on time every month. 

Finally, keep in mind that many times you might find that your loan payment is not enough to cover your expenses abroad. Read about part-time jobs and freelance opportunities wherever you are going to ensure you have all your options ready. 

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