How to Repay a Student Loan: Steps in a Plan to Pay College Loans
A student who can find time to study, can find time for this project. Commit several hours to ensuring repayment of loans to avoid a “bad credit” label. Treat this project like an appointment. Designate a time and date to complete a student loan tablet and figure out how much is owed for education.
Student Loan Tablet
Purchase a tablet or folder in a favorite color or with the emblem of one’s favorite sports team or even from a children’s notebook section, but ensure that the tablet or folder that is chosen is unique and separate from any other paperwork in the home. Ensure that the information is placed prominently in memory and location.
If the student loan borrower moves to a new residence or apartment, this is one of the items that he/she wants to be able to quickly locate. This tablet should be conspicuous so that the individual pays attention to it and remember its whereabouts.
Gather the Paperwork
Begin gathering all of the loan company paperwork. For individuals who are not organized and have letters and notices lying about in no particular order, get a box or organizer, label it, and began gathering all loan statements and placing them in the container.
If necessary, spend several days gathering the paperwork from nooks and crannies in the residence because when the student loan borrower finally sits down and begins to arrange payments he/she will need all of the paperwork. It’s like committing oneself to putting a puzzle together; one needs all of the pieces and the necessary time to put all of the pieces together.
Sort Letters by Loan Institution
When the day (or night) set aside to begin this project arrives, take the gathered paperwork, a pen (or type the information if that is preferential), the student loan repayment tablet, and a large envelope or folder. Go through the letters from the loan companies and separate the letters according to the creditor or loan institution – letters and correspondence from one loan institution are separated from other loan institutions.
Annotate Name of Each Loan Institution
Next, write the name of each lending institution in the student loan tablet; include loan name and loan account number. Leave several spaces between entries to write the amount owed to each agency and additional information.
Arrange Letters from Loan Companies by Date
If the latest notice from the loan institution is readily available, underneath the name of each lending institution write:
- the total amount owed
- the number of payments that must be made
- the amount due each month
If the latest notice from the loan agency has been received, but it is mixed in with other company notices, separate the correspondence by date; this helps in separating the monthly interest statements from the notices that indicate the repayment period is about to begin. Arrange the letters by date, and locate the latest correspondence; begin with the most recent notifications from the loan agency.
Find the Letter with the First Payment Due Date
Look for these key phrases on the paperwork:
“No. of Payments”
“Amount of Payments”
After locating the student loan letter with this information, copy the information in the student loan tablet. The letter should include the projected date of the first payment, the date of the last payment, and the total payments. From the same letter, find the website address, phone number, hours of operation, and mailing address of the loan institution and include this information in the entry.
Mailing Address of the Loan Company
Regarding the mailing address – Large corporations usually have several different addresses for routing and directing mail. Ensure that the letter clearly indicates the payment mailing address. A payment that is sent to the wrong address may not be correctly rerouted. Ensure the correct mailing address for receipt of payments is annotated in the tablet.
Method of Repaying Student Loan
The borrower will determine how he/she will make payments. Payment options such as automatic debit, mail, check, etc. are available. A borrower who opts for electronic payments is required to supply a username and password for transactions. Write down a hint or clue in the student loan tablet as a reminder of username and password or write down a hint or clue for where to find the information.
This is also the time to read through the paperwork and understand the terms of the loan. Read the information and write down any important details in the student loan tablet.
Entries in Student Loan Tablet
One complete entry in the student loan tablet (or folder) should look like the example below:
- William Stafford Federal Loan (Name of loan and account number)
- Monthly payment – $100.00 (Amount due each month)
- Date of first monthly payment – January 1
- Number of payments – 10 (Total number of paymenta)
- Total amount owed $1000.00 (Total amount to repay)
- Phone number – (Include hours of operation)
- Email Address – (Include website address of loan institution)
- Paying electronically – Register for account annotate Password and Username
- Include routing number of personal bank (Having this information is useful)
- Mailing Address for payments – Useful information even if not opting for payment by mail
- Add any other pertinent information
Place the letters used for attaining the payment information in a large envelope. Photocopy the letters later and maintain the copies in the student loan tablet. This way, if meeting with a loan counselor, discussing loan consolidation, changing the terms of one’s loan, or even seeking a deferment, the original paperwork and required documentation are readily available.
Student Loan Consolidation
If the student loan tablet looks overwhelmingly complicated, consider loan consolidation. A loan consolidation combines all loans into one requiring one monthly payment to one loan institution. For more information research student loan consolidation. Note: federal loans generally are not consolidated with private loans
Arranging all of the loan payment information makes it easier to understand one’s financial situation and confer with financial advisors about loans.