In this week’s blog post from your community of South Austin apartments for rent, we’ll provide residents with some tips for staying on top of — and eventually paying off— your student loans.
There’s nothing that people like to complain about more than student loans — and rightly so. It’s kind of a bummer that you have to spend the next 10, 15, or 20 years of your life paying a good chunk of your income to the government. Nobody’s happy about it, but a good majority of us have to deal with it.
Thankfully, there are a few tips and tricks that you can use to your advantage when paying back student loans. If you’re interested in learning a little more about your student loans and the options out there, check out this week’s blog post. Also, be sure to share this post with any friends and neighbors at your community of South Austin rentals who might need a little help with their loans.
Research and understand the various payment plans
Income Contingent Repayment — This plan is a great way to keep your payments low and even avoid having to pay off the entirety of your loan. The way it works, is you pay no more than 20% of your adjusted gross income for 25 years. If the loan is repaid before then — great! If it isn’t, the rest of the loan is forgiven. If you have a massive student loan, this plan might be the way to go.
Graduated Repayment — If you anticipate getting a raise or two in the next 5 years, the graduated repayment option might be a good choice for you. The graduated repayment option increases your payment every two years, so you won’t pay much now, but you might be paying quite a bit down the road.
Pay-As-You-Go Repayment — This one is a little dependent on your financial situation, but if you can prove financial hardship, you’ll only have to pay 10% of your gross income for the next 20 years. What’s interesting about this loan, is the financial hardship bit. You have to prove a financial hardship to get the low payments, but you only have to prove it once before you’re locked into those low payments for the next 20 years.
Extended Repayment — If you want lower payments, it might be smart to go with the extended repayment option. You’ll end up paying more in interest, but you won’t pay as much per month. A lot of loans are meant to be paid back in 10 years, but extended repayment plans can give you up to 25 years to pay back your loans.
Understand Deferment and Forbearance
The main difference between deferment and forbearance is that during deferment, you may be able to get the government to pay the interest that your loans are accruing. You might be eligible for deferment if you’re unemployed, if you’re taking half-time college classes, or if you suddenly become disabled. If you have a Stafford Loan, a Perkins Loan, or a few other types of federal loans, you may not have to pay interest while your student loan payments are on pause.
As always, we appreciate the fact that many of our residents have come back to read our latest blogs time and time again. We’re happy to be able to help you all stay on top of your student loans, and we hope you’re able to pay them off as quickly as possible! If you’re interested in learning more about South Austin apartment living, please feel free to check this page again in a couple weeks when our next blog post goes live. Also, be sure to follow The Brodie on social media so you can keep yourself updated and informed about all the events and giveaways happening at your South Austin apartment community.