Student Loan Repayments: Tomorrow’s Problem That May Hunt You for Many Years
Indeed it is expensive to become an adult in America, especially if you are planning to finish a degree. In fact, to some who can’t afford college, this would mean spending $949 per month for the next 25 years. Ashley Huntington is one of them. And her greatest challenge after graduation is paying such large debt incurred over the years.
“I did not know how much I will be billed for my loan until I start paying it 6 months after graduation. And I have no idea how big the amount is until I received my bill. Indeed, over these years, I have been in blissful ignorance”, Ashley said.
Ashley Huntington is a graduate of law from Loyola University in Chicago and has borrowed to as much as $125,000 student loan. Part of the amount was used to finish her bachelor’s degree at DePaul University. However, majority of the loan was spent in her law school. The Federal Student Loans only gives borrowers 6 months after graduation to prepare for the loan repayments. After 6 months, one will be billed for the loan.
The sad part is, you don’t really know the exact amount for the loan repayment even if you spend hours doing calculation on it. You need to choose your repayment plan for you to know how much will be your monthly bill. And you need to do this before you forward your first payment.
“After knowing the amount I have to pay for the loan, I was shocked”, Ashley said. She just found out that the interest will cost her three times as much as the principal cost for the amount she loaned. Meaning, she needs to pay $949 a month in 25 years’ time. As a result, Ashley tried to be frugal in her expenses to keep up with the bill. She transferred to a more affordable gym, eat out less often and do away with her subscription for a music streaming. But for Ashley, the cost she has to pay to get her to what she is now is all worth it.
“I did not really mind the cost of the loan when I applied for it. All I have in mind is to get to college”, Ashley admitted. However, little did she know that there are ways to cut down your student loans. You just need to choose the right lending company and this is the best thing you need to do right from the start.