Are you or someone you know getting ready to start their college journey? Or maybe they just graduated and it’s time to start making payments on those student loans. College graduates are entering the workforce with high hopes, bright futures, and years’ worth of student loan debt. Day Air Credit Union is here to help you every step of the way, whether you’re just starting out or just finished.
Plan for the Payoff When You Plan Your Student Loans
Planning ahead for college is not just a matter of getting good grades and accumulating a list of extracurricular activities and awards. It’s also a process of understanding how to pay for tuition and living expenses during the college years, which often extends beyond the typical four-year period and sometimes also includes graduate school.
You may have the means to keep your student loan borrowing to a minimum, which is ideal. But many parents are looking for every financial advantage available in scholarships and loans. Working together with your child, begin early by considering all the options for minimizing total student loan debt and the forthcoming monthly payments.
Here are some ideas for starting your family conversation about planning for the payoff:
Begin your journey by creating an account for both parent and student borrower at StudentLoans.gov, which provides information on federal student loans, the ones with lower interest rates and more flexible repayment options.
Inform your search for student loans at ConsumerFinance.gov, which provides information on private (non-federal) student loans, which have higher interest rates and less flexible repayment options.
Consider studying for a career in public service, which offers student loan forgiveness under the Public Service Loan Forgiveness Program. An initial career in government organizations at any level (federal, state, local or tribal) or not-for-profit organizations that are tax exempt under Section 501(c)(3) of the Internal Revenue Code can lead to many other opportunities in the future.
Explore the possibility of serving in the military prior to entering college. Active service members and veterans of all branches, including the National Guard and Reserves, have several student loan programs available to them under the GI Bill. A calculator to compare the various program benefits is available at Vets.gov.
Utilize a tax deduction of up to $5,250 on tuition paid by or reimbursed by an employer. It’s possible to get a job and get a college education at the same time, so giving consideration to getting a job first may be surprisingly smart. Both McDonald’s and Starbucks offer employer-paid tuition assistance in certain states.
4 Ways to Repay Your Student Loans Once You Graduate with Help from Day Air!
Graduation day seemed like it would never come. As a freshman, you saw seniors swaggering about like they owned the place. Then, just a few short years later, there you are. You’ve crammed for your last final, written your last paper and said tearful goodbyes to your friends. For many graduating seniors, though, leaving college isn’t “real” for quite some time.
Day Air Credit Union can help you pay back your loan in more ways than you might realize, and save you money in the process. Here are four convenient ways you can pay for your education and get greater flexibility. You might be able to get some extra rewards out of the deal, too!
A Savings Account for College Students
You can’t start paying off your student loans while you’re in college. But that doesn’t mean you have to sit and wait to get buried under an avalanche of debt. You can take proactive steps while you’re in school to make your life easier.
Take advantage by setting up automatic bill pay. When you do, you can designate an amount of your choosing to be paid to the lender every month. You can pay your bill back at your own pace and save some money on overall interest while you’re at it!
One of the benefits of a student loan is the bump you get on your credit score by paying it regularly. Lenders see your management of student loan debt as evidence of responsible borrowing, making them more likely to trust you in the future. If you want to maximize the benefit to your credit score, you can use a credit card from Day Air Credit Union to make your student loan payments.
It might be time to consider refinancing. You can take a personal loan for all your outstanding debt and consolidate it into one monthly payment. You can lower your interest rate and simplify your financial life at the same time.