Student Loan Mistakes to Avoid

Student Loan Mistakes to Avoid

There are a few things you can rarely get out of in life — family dinners with your in-laws, rush-hour traffic on holiday weekends, and paying back your student loans. But just because you’re stuck with them, it doesn’t mean you can’t be smart about how you pay them back. These are some student loan mistakes you should avoid in order to make your life easier.

You wait to make payments until your grace period is over.

Most loans come with a grace period that gives you six months before you have to start paying back your debt after graduation, but it’s better to start making payments right away after you graduate to avoid accruing more interest.

You don’t set up auto pay.

Online, automatic payments take your loan amount directly from your account each month, which ensures you won’t miss a payment and incur late fees. Plus some companies will even offer you a lower interest rate for setting up auto-pay.

You don’t prioritize your different loans.

If you have multiple student loans, on top of paying them off as scheduled, you should work to pay more than your monthly minimum on the loans with higher interest rates. This way, you’ll make a bigger impact on the largest amount you owe and spare yourself from accruing higher interest.

Student loans don’t have to be a burden on your shoulders if you’re smart about how you pay them back. At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From 529 college savings plans to estate planning, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.