Getting and dealing with student loans – Stay out of the debt mire

Completing university is a tough process. You require working hard and spending a lot of time studying as you need to get a good job through which you can make money and repay your student loans. You’re actually investing in your future and therefore you need to take some important steps through which you can easily get a grip on your financial future. Fortunately, the Australian government and the banks often offer various loan programs without checking your debt to income ratio,  to assist you with their financial state. There are a number of programs that allow you to defer payments until they’ve graduated and completed their studies so that the students don’t require going through hurdles while making timely payments on their student loans.

Not everyone is actually qualified to get a government student loan as the programs are typically available for only those who meet the required criteria. Although there are various tips that you should follow while getting and dealing with student loans in Australia, there are many who don’t follow them. Check out the most important tips that you should follow when you want to avoid falling in student loan debt.

  • Do your homework before taking out a loan: The foremost step that you need to take is to do your homework before taking out a student loan. You just have to make sure that you know the terms and conditions of the student loan before you sign the dotted line. There are few options that you need to check before you choose a student loan and unless you take some important decisions, you might end up with the wrong loan. Check the pre-payment penalty fees so that you know the fees that you’re supposed to pay them.
  • Don’t take beyond your afford-ability: While you choose to get student loans, you should make sure you choose to take out student loans within your afford-ability so that you don’t start defaulting on the loans. Check your monthly income and the expenses that you can make timely payments on your loan accounts. You can also use the debt calculators if you want to ensure taking out loans within your afford-ability.
  • Try managing your payments: You should try managing your monthly student loan payments so that you don’t start racking up debt. Student loan is another debt bubble that is going to affect the US economy and if the students in Australia take some more bad financial moves, they will also contribute to this debt crisis very soon. Therefore, you should manage your finances in the best way possible in order to help stay on the right track.
  • Continue saving money: No matter how many student loans you’ve taken out, you should ensure saving money so that you can build an emergency fund with which you can make payments towards your multiple accounts. Save at least 10% of your monthly income or allowances so as to help you remain armed against all the financial odds.

Look for ways to boost your income: As you’re a student and you’re living on a fixed income, you should always look for ways to boost your monthly income. The more you earn, the more will be the amount that you can devote towards your debt accounts.
Therefore, when you’re wondering about the ways in which you can take and repay the student loans, you should take into account the above mentioned points. Save money, follow a budget and stay within your means in order to reside on the right financial track.

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About the Author: Andrew