College graduation is one of the greatest accolades that someone can achieve. However, in order to make the most out of your degree, you have to be able to cover your student loans later on in life. Bob Jain, as well as other authorities on finance, will tell you that this doesn't have to be challenging. As a matter of fact, it can be surprisingly simple if you know what to do so. Here are just a few of the do's and don'ts of covering student loans to be aware of.
DO cover your student loans sooner. One of the reasons why this should be done - and companies such as Bob Jain Credit Suisse will agree - is that you don't have to worry as much about interest. For those who don't know, interest has to be paid on top of the actual monthly payments, which adds up over the course of time. The sooner you make the payments in question, the less that you have to concern yourself with interest rates.
DON'T pay the smallest loans first. Let's say that you have multiple loans to cover; you might want to know which ones to cover first. Instead of starting with the smallest ones, why not focus more so on the larger ones? After all, these will have the bigger interest rates mentioned earlier, which means that you'll eventually pay less later on down the road. It might seem easy to pay off the smallest amounts first, but it's not in your best interest to do so.
DO look into part-time work. It's not uncommon for college students to have jobs. One of the reasons for this is that students require money, which is gained through jobs like cashiering, waiting tables, and the like. As students continually build their bank accounts, they'll be better able to pay off their loans in the future. According to the likes of Bob Jain CS, this is a great way to help students learn about responsibility, which goes into adulthood as well.
DON'T miss a single payment. It cannot be said just how detrimental it is to miss a single student loan payment. When you miss multiple payments, you tend to be looked at in a less favorable light, particularly by banks and other financial companies. If you want to apply for a loan, for example, it's needlessly more difficult to become approved. No matter how difficult it may see, do not miss even a single payment you're responsible for.
DO cover your student loans sooner. One of the reasons why this should be done - and companies such as Bob Jain Credit Suisse will agree - is that you don't have to worry as much about interest. For those who don't know, interest has to be paid on top of the actual monthly payments, which adds up over the course of time. The sooner you make the payments in question, the less that you have to concern yourself with interest rates.
DON'T pay the smallest loans first. Let's say that you have multiple loans to cover; you might want to know which ones to cover first. Instead of starting with the smallest ones, why not focus more so on the larger ones? After all, these will have the bigger interest rates mentioned earlier, which means that you'll eventually pay less later on down the road. It might seem easy to pay off the smallest amounts first, but it's not in your best interest to do so.
DO look into part-time work. It's not uncommon for college students to have jobs. One of the reasons for this is that students require money, which is gained through jobs like cashiering, waiting tables, and the like. As students continually build their bank accounts, they'll be better able to pay off their loans in the future. According to the likes of Bob Jain CS, this is a great way to help students learn about responsibility, which goes into adulthood as well.
DON'T miss a single payment. It cannot be said just how detrimental it is to miss a single student loan payment. When you miss multiple payments, you tend to be looked at in a less favorable light, particularly by banks and other financial companies. If you want to apply for a loan, for example, it's needlessly more difficult to become approved. No matter how difficult it may see, do not miss even a single payment you're responsible for.
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For further student loan pointers from Bobby Jain CS, please consult Bobby Jain Credit Suisse today.. Check here for free reprint license: Bob Jain: The Do's & Don'ts Of Paying Student Loans.
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