Excessive student loan debt is a significant issue for today's society. Before you graduate or leave Drexel University, you should consider the best way you can manage any debt you have accumulated. You should consider the following when making plans to repay your student loan debt:
- Calculate your Monthly Payments: Before you can plan appropriately, you need to determine how much you will owe monthly for each of your loans. You can use the calculators at the Federal Student Aid website for federal loans; for institutional loans you should visit the ECSI website and for private education loans you should contact your lender directly.
- Create a Budget: Smart financing planning involves creating a budget that allows you to map out how much your bills and income are for a week, month or longer. You should include all your student loan debt along with other types of bills and obligations in your budget to determine how much of your income you need to make your loan payments.
- Consider Federal Loan Consolidation: Consolidation of federal loans allows you to collapse your individual federal loans into a single loan, with a new interest rate and repayment options. Consolidation may make the repayment of your federal loans easier. You can review information about federal loan consolidation at the Federal Student Aid website.
- Pay More than the Minimum: Sometimes you may only have enough to pay the minimum amount due; however, the longer you take to pay off a loan, the more you wind up paying in the end as interest accumulates. If you can, consider paying more than the minimum due each month. You should always contact your Servicer/Lender if you intend to pay more than the minimum due to ensure your extra payments are being applied to principal loan balances. Additionally, you want to ensure that there are no penalties or fees for paying more or early on your loans.