If you’re like most residents of our apartments in South Austin, you’re paying back student loans each month. We want to help our residents get out from under the burden of student loans, which is why we’re talking about them in this week’s blog! We know this isn’t the most exciting topic in the world, but we think the advice in this week’s blog can help you pay back your loans faster and more efficiently.
Without further ado, let’s take a look at the tips and advice below. When you’re done reading this post, please be sure to share it with your friends and neighbors at CityView at SoCo — the South Congress apartments Austin residents choose for upscale living in the heart of the city.
Learn what it means to default
Listen up folks, because sometimes you need to be scared of something in order to be motivated to avoid it. If you miss student loan payments for 9-months, you’ll go into default. When that happens, the total amount of your loan will be due, and your credit score will basically go up in flames. This is a nightmare scenario that probably won’t happen to anyone reading this blog, but you definitely want to do everything in your power to avoid letting this happen to you. That means think twice before you quit your job and travel the world for 9 months!
When you first start paying your loans, the loan company probably told you how much you’d owe each month. Ever since then, you’ve probably been paying that same amount each month, or however much your loan company is telling you to pay. Instead of doing that until the end of time, we’d like to encourage our residents to pay a little more than the loan company requires you to pay. It’s called prepaying, and it can help you pay less in interest over time. You’ll have to send a letter to your loan company requesting that your extra payments be put towards the principal of your loan, but after that you should be all set!
If you haven’t consolidated your loans, pay off the expensive loans first
Consolidating your loans can be a great way to simplify your life and get a good interest rate, but it’s not for everyone. If you choose not to consolidate your loans, make sure you pay down the most expensive loans first — meaning the ones with the highest interest rate. You’ll usually only be able to do this if you receive a large sum of money, but if you are responsible enough to pay off your loans with that sum of money, put it towards the expensive loans.
We also recommend paying off private loans before you pay off federal loans, even if the private loans have a lower interest rates. Federal lenders are a lot more forgiving if you can’t pay your loans back, so you want to get rid of those private loans first.
That’s all the student loan advice we’ve got for you this week, residents! We’d like to thank you for taking some time out of your day to read this post, and we hope you’re able to put this advice to use when you’re paying back your loans! If you enjoyed this week’s blog and want to read more like it in the future, please be sure to bookmark this page so you can easily check it again in a couple weeks when the next blog goes live on the site. While you wait for that post to go live on the site, be sure to follow CityView at SoCo on social media! That way, you’ll be among the first to know about resident events and promotions happening at your community of SoCo Austin apartments.