Education gives us the credibility to achieve our dreams. However, not everyone has the means to continue their education. Most of the students want to find out ways to stretch the student loan to get the maximum benefits. The increasing cost of education forces students to take out overwhelming student loans to bear the cost of college fees. This ultimately results in students incurring student loan debt.
Repaying the student loan debt becomes difficult due to the lack of good employment. The problem becomes more intense when a stay-at-home home has to deal with her student loan debt.
A mom plays an important role when it comes to matters related to money. It is she who looks for the betterment of her family. She takes the right step to her children as to how money should be spent sensibly. However, As a stay-at-home mom, managing finances is pretty tough, and having an additional college debt could be stressful. Following are a few simple steps you can repay your student loans being a stay-at-home mom.
1. Consider a work from home job to boost income
Regular payments can help you to avoid extra charges and penalties on your loan. If your monthly income is not sufficient to pay off your financial obligations, then consider a part-time job that you can manage from home to boost your income. By doing so, you can make your loan repayment easier. Remember, a missed payment may lead to a major financial crisis. Your credit score may drop or your account may go to the collection agencies. Thus, you should try to make regular payments on your student loan.
2. Attend the loan repayment assistance counselling program
You should attend the student loan exit counselling program or Loan Repayment Assistance Programs (LRAPs) to understand the student loan repayment process. Loan Repayment Assistance Programs (LRAPs) also offer help to make student loan payments. However, you should meet the eligibility criteria. Some schools and employers serve Loan Repayment Assistance Program to eligible students, single mom, or employees. So, you should try to find out whether or not you are eligible to get help to repay your student loan debt.
3. Review all loan details
Ensure that you know all the details of your loan terms. Go through the documents and arrange them for future reference. Find out about the interest rates, grace period and all other important things. Remember, the grace period of the student loans can be different. Like what? Federal student loans offer 6 months’ grace period and Perkins loans have 9 months as a grace period. In the case of private student loan debt, the grace period for making the first payment can differ from one loan to another. Remember, making the first payment on time is important. Thus, you should be clear about every detail of your loan terms.
4. Set up a time frame for repayment
It is advisable to set up an aim to repay your loan. 10 years might be sufficient to get rid off all your student loans. Stretching out the period may reduce your monthly payments but you’ll end up paying more as interest on your loan.
5. Consolidate your private student loans
If you are finding it hard to keep up with multiple payments on your student loans, you can opt for consolidation. Thus, through a single monthly payment, you can repay your existing debts.
If you opt for a consolidation loan, you need to borrow a new loan to pay off all your existing student loans. This way all loans get bundled into one, which means a single lender and a single monthly payment that you have to manage.
6. Talk to the lender
Many students have confessed that even after getting a degree, they are doing the same job what they used to do while pursuing the degree. Working for $10 per hour is not enough for fresh graduates when they have $30 thousand in student loan debt. However, if a student hasn’t got a job after completing his studies, he/she can negotiate and reduce the payments up to a certain percentage. If you are unemployed and stay-at-home mom living with one income, you can talk to your lender to get a revised repayment option as well.
7. Lower the principal amount
In a debt repayment process, you should pay the late fees first (if any), then the interest rate and then the principal amount. But if you have financial ability to make more than the minimum payments, then you should go ahead. By making larger monthly debt payments, you can reduce the principal and the interest rate too. However, it is advisable to send a written request to the lender to get permission to do so. Make sure the extra payments are going to the principal amount. Often lenders consider the extra payments as future payments.
8. Seek help
The government and some non-profit organizations offer grants to moms who are struggling with their student loan debts. So, look for the grants that are available for single moms or unemployed mothers.
Lastly, young mothers are shackled with overwhelming student loan debt but they can overcome it with their determination. Remember, there are some government grants and non-profit organizations that help brilliant students so that they don’t have to leave their dreams midway. However, it is also advisable to stay within your means. Using credit cards to make ends meet can only make your financial situation worse.
Bio: Sophia has started blogging after completing her graduation. A deep passion for writing has inspired her to get connected to other bloggers. She loves to give her opinion on finance, pets, and lifestyle topics. You can connect with her on Instagram here!