Taking a loan is not a bad thing, sometimes it becomes a tool to grow faster and sometimes it is the only option you have. People take different kinds of loans in order to fulfill their immediate or long term goals. From taking loans from institutions to taking personal loans for starting a business and from taking home loans to taking a loan for your education.
Student life is not a piece of cake, especially when you have taken loans. Taking loans can be easy, but it is the part that comes after that is difficult. Repaying loans is not easy in any way, and when the interest keeps adding up, the situation only gets worse. Click here to find out more. Here are some student loan hacks you can follow.
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Pay While In School
One way you can minimize your student loans is if you start to pay the interest while you are in school, so your loan does not get bigger. Many student loans provide the option to students where they can defer paying while they are still in school. However, if you are a graduate student, the interest on your federal student loans is very much your responsibility. If you pay now, it will be a lot better and easier because no excessive will be added in your principal balance.
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Get Scholarships
Most students go straight towards loan options when you have so many other better options. Before you consider applying for loans, try applying for scholarships and other programs. They can help you just as much, and there will not be any debt on your shoulder that you will need to pay back.
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Earn Cash Back
Did you know that you can get paid for the things you normally do every day, such as shopping and eating out?! Well, you can, and you should start thinking about it too! Maybe the dollar amounts are not that huge, but every big thing starts small. If you link your credit card to your Upromise account, the dollars will add up over time. You can also invite your family to join in.
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Keep Track Of Your Loans
If you know that you will be facing problems regarding loans and their repayment, you should start thinking big. Start getting organized; it is never too early to do that. You can lose track of your loans very easily with your studies and extracurricular activities going on. You should make a plan about how you are going to repay. Make a list of all of your student loans and include every detail starting from names to contact information. Record the amount you are owed, the interest rate, and when you are supposed to give it all back. Breakdown your federal student loans, if you can.
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Tax Write-Off
Take advantage of the student loan interest deduction allows you to deduct up to $2,000 in private and federal student loan interest. Take advantage of this policy. You can claim this money even if you do not itemize.
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Auto-Debit
There is an offer that many lenders have. In this offer, there can be an interest rate reduction of if you sign up for auto-debit. What happens is that every month, your loan payment will be deducted from your bank account automatically. You can save up to $300 in interest for every $10,000 that you have borrowed.
Follow these tips and make your life easier!
About the Author:
The article has been written by Taylor Hill for Times of Startups. Taylor works for a financial technology company Stilt located in San Francisco which is revolutionizing the way individuals with limited or zero credit history get loans in the U.S.
