3 Tips to Deal With Your Student Debt

Statistics reveal that most college graduates these days move back in with their parents in order to pay back their college debt. So that should tell you how difficult it has become to pay back student loan with jobs being difficult to find and the economy that refuses to pick up the pace.

So here are 3 tips that should give you a good idea as to how you plan the repayment of your student loan:

#1: Understand the nature of student loans

Student lenders can pursue you as long as they have to in order to obtain repayment of the loan since there is no provision that erases this debt in the case of bankruptcy. It won’t matter if you are aged or disabled as you will have to cough up the full amount as promised. Of course, this doesn’t work in the case of other forms of debt.

#2: Ignoring your debt might be a big mistake

In understanding the nature of these loans, it would be a bad idea to ignore the repayment of the student loan. You can be sure that this will affect your credit score which in turn, will affect the rates that you are offered when it comes to loans and credit cards. In addition, you could be sued, your income tax refunds won’t be given to you or the renewal of your professional license will be denied.

#3: First private student loans, then federal student loans…

Considering how tough student lenders can be, it’s a good idea to clear off your private loans at first while paying the minimum amount for the federal loans. Once you’ve cleared your private loans, then you can focus on clearing your federal loans.