5 Handy Tips to Easily Pay Your MBA Student Loans

1. 5 Handy Tips to Easily Pay Your MBA Student Loans

2. A student loan is the easiest way to finance your MBA. The availability of funds lets you take your pick of the best local or international colleges without letting money be a constraint. Now, it is important to start planning your loan repayment as soon as you receive the funds. Student debt that has accumulated over time can really eat into your initial paychecks. To prevent debt from piling up, here are some easy tips that you can use to repay your MBA student loan.

3. Start paying your loans during moratorium Your student loan comes with a moratorium. It is advisable to start repaying your loan during this period. Moratorium can extend anywhere between 6 to 12 months but it is not interest-free. So, make use of the moratorium and start paying as much as you can. • Pay more than the minimum amount When you repay your student loan, it is important to always put in more than the minimum amount due. Making the bare minimum payment will see you lose more money in interest on your MBA student loan. Making more than the minimum due helps you reduce the principal on your loan and a lower principal automatically equals lesser interest to be paid. • Set up automatic payments Manually making payments each month may see you forget an installment or two. This can turn you into a defaulter. Defaulting on your loan can impact your credit score and the credit scores of your parents who are co-borrowers on your loan. Plus, you put the collateral at risk of being claimed by the bank. So, to avoid this from happening, make sure to set up automatic payments to ensure your loan instalment goes out on time each month. Regular payments will also save you from getting late fees.

4. Request your employer for aid Some companies help students with their loans by offering them a lump sum payment when they start work. Do check if your employer would be willing to do this. However, if you do receive this kind of help, it might be accompanied by a lower salary or certain cuts in benefits. Make sure to discuss the details before accepting the offer. • Take up a part-time job If you are study in abroad, expenses can be quite high. It is advisable that you take up part-time employment to save money. This money can be put into a separate savings account. Once you have a sizable amount saved up, you can start using this money to repay your MBA student loan. Start looking around for part-time jobs as soon as your academic year begins but remember to also focus on your studies. Finally, do shop around for various offers and rates on MBA student loans before selecting one. Also, do draft up a repayment plan as soon as your loan is approved. Keeping these tips in mind will help you repay your loans on time with no hassles. We hope this article has been helpful.

5. We hope this article was helpful to you.

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