Your Guide to Surviving Student Loans with No Job
Life doesn’t always go as planned. So oftentimes, we might find ourselves in a pickle we aren’t prepared for. Yet, if you already know these pro-tips, unemployment doesn’t have to be so scary. Yes, even when you have a load of student debts to pay.
Most students are unaware that all federal and choice private loans have protection clauses, which favor students. You’re likely to be protected if you’re in-between jobs or are going through a disability or illness. Being uninformed about these options would leave you unduly stressed-out if a situation like this plays out in your life.
So here’s how you can get some sleep ending this nightmare:
1. Contacting Your Student Loan Provider
pathdoc/Shutterstock: Keep your loan provider informed
The loan provider must be informed as soon as possible when you lose your job. Not only would they have the most reliable information on your options, but they’d be bound to find a way that works for both parties.
Hopefully, they will be able to grant you a break from paying installments until you find a new job.
2. Applying for Forbearance or Deferment
Vitalii Vodolazskyi/Shutterstock: Student loan deferment
It’s always advisable to get a student loan deferment over a forbearance since you will be spared from paying interest if it’s a federal subsidized loan. Private loans, unfortunately, do not have this cover over interest charges.
3. Paying Interest On Your Loans If Possible
Artur Szczybylo/Shutterstock: Managing interest payments
Interest is the beast that keeps getting bigger during your deferment or forbearance periods. So it’s best to keep paying these even when you’re jobless, through utilizing an emergency fund or temporary gigs. If you do pay, make sure to take care of the ones with the biggest interest first!
4. Utilize Your Student Loan Resources
fizkes/Shutterstock: Planning for the emergencies
There are companies dedicated to refinancing student loans. They often offer services to help manage your debt, and even counsel you on securing another job! Make sure you don’t leave any stone unturned.
It’s always a good idea to be prepared for a worst situation. Of course, you never wanted to be jobless, but if you’ve already received notice on a lay-off or firing, setting up an emergency fund should be your priority. Saving money enough to cover three to six months of expenses is always a good rule of thumb. Don’t wait till disaster strikes to start saving!
More in Loans
Dream of Owning a Home? Here are Five Steps You Should Take Today to Make it Happen Sooner
The home buying process comes with a lot of research and preparation that needs to happen even before you actually start...October 23, 2020
Find The Best Economical Franchise for Yourself
Dominos, McDonald’s, Chick-fil-A are some of the most popular franchise options because they offer sure-shot revenue due to their popularity and...May 31, 2020
Having Problem Choosing the Perfect Car Loan? This Might Help You
Some investments are unavoidable when you want to live a comfortable life, like a house and a car. These necessities require...May 31, 2020
Invest in Your Children – And for Them Too
engagestock/Shutterstock: Planning for your kid’s future Responsible parents understand the value of saving up for their children’s futures. Astute financial planning...May 31, 2020
What to Do When a Large Client Goes Bankrupt
Scoring a large clientele is a cause for celebration. Still, news of the bankruptcy of the client can put a dampener...May 31, 2020
What Happens When You Are In Disagreement With Your Franchisor?
The excitement at the time of buying the franchisee was running high, you had vetted the franchisor and had faith in...May 31, 2020
Did An Employee Sue You? Don’t Fret!
Studies have revealed that one in every ten small businesses has gotten sued by the employees, and a disturbing 43% has...May 31, 2020
Things You Must Know About Independent Contractors
Have you ever heard the term “independent contractor”? Even though it sounds foreign to your ears, many companies have been hiring...May 31, 2020
Finishing Your Student Loans Faster, Why Not?
A student loan is like a wolf in sheep’s clothing. It seems soothing at first, yet the constant interest will haunt...May 30, 2020