The only way to stay on top of it is to make sure you understand all of your student loan repayment options and have a solid plan in place.
Boston, MA (PRWEB) October 05, 2017
Average student loan debt in the U.S. has soared to over $35,000 per individual. Once Millennials graduate, they are faced with the burden of repaying their student loans, a responsibility that cannot be put off. Defaulting on loans can destroy Millennials’ credit and put them deeper into debt. In order to help prevent this scenario, national nonprofit American Consumer Credit Counseling has put together tips for Millennials on how to pay back student loans.
“For many Millennials, student loans can be crushing – particularly when you add in the high cost of food, housing and other expenses,” said Steve Trumble, President and CEO of American Consumer Credit Counseling, based in Newton, MA. “The only way to stay on top of it is to make sure you understand all of your student loan repayment options and have a solid plan in place.”
According to Make Lemonade, the total student loan debt in the U.S. hit $1.31 trillion in 2016. The total number of borrowers in the U.S. with student loan debt is 44.2 million, and the student loan default rate is 11.2 percent. According to debt.com, student loan debt has risen almost 70 percent in the last five years.
American Consumer Credit Counseling offers advice on what every Millennial should know when it comes time to repay student loans.
1. Six-month grace period – use the six-month grace period to learn everything about your student loans and make sure you are aware of how much you owe.
2. Choose a repayment plan – a standard repayment plan is 10 years but based on your financial situation, it may not be the best option. Other repayment options include extended repayment, income-based repayment, income-contingent repayment and income-sensitive-repayment. Research all your options and decide what’s best for you financially.
3. Budget – If you do not already have a budget, be sure to create one and include your monthly student loan contributions. A budget is a good way to keep track of your spending each month.
4. Make payments on time – make sure you make all your payments by the due date. If possible it may be beneficial to set up automatic payments to ensure timely payment.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling, call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at http://www.ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx