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It can take months to find a suitable job after you graduate, and you may be worried that you won’t be able to repay your student loan on time. We find out about the grace periods that student loan providers offer.
7 February 2022 · Harper Banks
It can take months to find a suitable job after you graduate, and you may be worried that you won’t be able to repay your student loan on time.
We find out about the grace periods that student loan providers offer, and we consider how you can successfully service your student debt.
Tip: You can consolidate your student loan with your other debt to reduce your monthly instalments.
Your repayments may be postponed
Sheila-Ann Robey, financial adviser at Lifeguards, an affiliate of Liberty, says that you generally need to start repaying your student loan once you complete your studies.
“While you are studying, the person standing surety for you – either a parent or guardian – may be required to pay the monthly interest and fees,” says Robey. You may indirectly assist them with this, but the aim is to focus on your studies without having to worry about your student loan.
Once you complete your studies, however, you will need to start thinking about paying off the loan.
Fortunately, Robey explains, students are often given a grace period in which to repay their loan in full. This allows graduates time to find a steady income before they need to tackle their debt.
Here are some examples of the grace periods that are offered:
Because each loan provider has different requirements and repayment terms, it’s crucial to understand what these are before taking out a student loan, Robey notes.
Tips to pay off your loan on time
Robey says that, when you apply for a loan, you should read the fine print in your credit agreement. Make sure you understand the options if you default on your loan repayments.
“It’s important to maintain open lines of communication with your credit provider, so that your credit score isn’t tarnished, and you don’t end up with a default judgment against you,” says Robey.
When paying your student loan, consider these tips:
“Your liability toward your student loan should never be ignored. If you’re struggling with this obligation, it may be helpful to schedule a consultation with a trusted financial adviser, who can assist you with budgeting and financial planning,” says Robey.
Get your debt under control by consolidating it – click here.
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