(Newswire.net — January 20, 2018) — If we ask the current generation which is the biggest problem for them, many of the respondents will say “student loans”. Graduating might become less exciting if you think about the fact that you will have to pay back a large sum of money.
There are numerous strategies that should help you pay your debt easily, but there might be a strategy that you haven’t considered so far: waiting. We know, it sounds almost impossible to improve your situation by waiting more until you pay back the debt, but the secret here is timing.
The right moment
While paying off your debt right away might seem like a good idea, you may discover that it is not. You may discover that you are not yet ready to pay your debt, or you can find better solutions for your loan. Sometimes, you might even find a way to get forgiveness for your loan.
There are certain advantages when you pay your debt on time. For example, you might decrease the sum you need to pay by avoiding increased interest rates. You can also make your debt to income ratio go down which can be helpful if you ever need to qualify for a mortgage for example. However, there are also some reasons why you should wait more before you make a payment.
Loan forgiveness
If student loans stress you out you should know that there might be a way to get rid of them completely. Loan forgiveness programs might be the solution you were looking for and you can apply for them. If you are eligible you might get a chance to erase your debt in 20 to 25 years. This will happen after you enroll in an income driven repayment plan.
Additionally, there is something helpful for the persons who have public service jobs. If you were thinking about working for a non-profit organization or the government you should know that after 10 years of service your student loans might be forgiven. There is also something for teachers working in a public school that has a low-income. If you have that job for at least 5 years, the state might forgive up to $17,500 of your debt.
Therefore, if you were already planning to work in any of these fields, you may not need to think about paying your student loan right away since you could remove that debt in just a few years without needing to pay anything.
No savings
Before you begin making your payments, you should make sure that you have enough money to live on. You should create an emergency savings fund, so you can always have some money for unexpected expenses. You never know when you might need to go to the hospital, or repair something around the house.
Without a savings fund it is not wise to start paying your loan since you may not be able to afford to take care of yourself and you will discover that you were not ready financially.