HOW TO HANDLE BUSINESS SCHOOL DEBT AFTER SCHOOL

Talk to current MBA students about life in MBA programs (not for app advice/discussion)
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Business school can leave you with a hefty student loan that you need to pay off, having the average debt of students in business schools being $56,000. It may seem gruesome and tedious to pay these loans off but here are some tips that can aid you to handle and pay them off with ease.
Make sure you understand your loans. You must keep track of the lender, balance, and repayment status for each of your student loans as they determine your options for loan payment and forgiveness. If you are not sure about them, ask your lender or visit www.nslds.ed.gov, as they are listed in the site. Private loans are not listed and would require a recent billing statement.
Make sure you take advantage of the Grace period given because your lender may have granted you the luxury of a grace period; a period where you do not require paying off the loan. Take full advantage of that time and fully understand your loan. Do not sit back and relax. For example, if your loan payment is $300 per month, make sure you take that $2,400 at the end of 6 months and apply it towards your loan. Doing that will lighten your burden.
Make sure you choose the right payment option. Federal loans, generally have a standard 10 year repayment plan that you could extend if you want or need to. However, the extension increases the interest that you pay back. Some options for student loans is utilizing Income Based Repayment and Pay As You Earn, where a percentage of your salary is cut and pays off your loans. Private loans, may offer a type of forbearance for a fee that you may be able to make interest-only payments for some period of time. Make sure you scrutinize your loan paperwork.
Pre-paying your loans is a good idea. If you can afford to pay more than your required payment, do it, as it can lighten your load. A request must be written to specify the extra amount that is to be applied to your loan. Your prepayment may even be credited to a future payment and may allow you not to be billed for the next month.
Make sure you pay off the most expensive loan first. Start with the loan with the highest interest rate, as it is the hardest to pay off. If you also have private loans, make sure you start with them as they have higher interest rates than federal loans.
Know whether you want to consolidate or not. A consolidation loan combines multiple loans into one for a single monthly payment and one fixed interested rate which is very appealing. Private loans can be consolidated with ease. Federal loans, should not be consolidated as you will lose all the repayment options and borrower benefits such as unemployment deferments and loan forgiveness programs.
Make sure you utilize loan forgiveness. Some programs may choose to forgive all or some of your federal student loans in certain fields or for certain types of employers even business fields. The Public Service Loan Forgiveness is a federal program that forgives student debt after 10 years of qualifying payments for people in the government, public service or non-profit jobs.
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Great post. For private student loans, you can also use a student loan calculator to estimate of the size of your monthly loan payments and the annual salary required to manage them without too much financial difficulty. A lower interest rate could lead to major savings. Say you refinance $40,000 worth of loans at a 6.00% interest rate. Over 10 years, you'd shell out $13,290 in interest. But if your rate was 4.00%, you'd pay $8,598 in interest, saving close to $5,000. As with any decision you make regarding your student loans, refinancing or a private student loan consolidation should be considered with care. If you're a qualified borrower, refinancing/consolidating could help you repay your debt faster and/or lessen your monthly payments.

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Planning your loan repayment can help students not only lower their financial burden in an organized way but also save big. And this planning can begin quite early, in fact as soon as the loan is disbursed. Since the more they pay back the lender, the lesser their financial liability will be; we advise students to be prudent in their expenses while studying and even utilize funds that they can earn while studying. Let us take a look at some ways in which students can lower their education loan burden while studying.

Getting a Part-time Job Such as Assistantship - Working part-time during the course not only helps you with your living expenses but will also help you save some amount that can be used to repay the education loan. In the USA the stipend for assistantships is approximately $12 per hour and students are allowed to work a maximum of 20 hours in a week. A student can, thus, easily earn between $900 to $ 1000 a year. This translates to INR 58000 to INR 65000 - money that can be used to repay a part of the education loan.
Get an Internship During the Summer Break - Students are allowed to do an internship during their summer break. This not only helps them get the relevant industry experience but also allows them to earn between $3000 to $ 5000 that can again be used to pay a part of the education loan.
We also suggest students build a budget and stick to it. Removing extravagances and unnecessary spendings and saving every penny should be a goal here. This not only helps you save money but also get used to a lifestyle that is not extravagant. This will come in use when you start earning and have money to spare but are wise enough to stick to your budget.
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