A recent poll carried out by TSN at the behest of Citizens Bank claims 59 percent of surveyed millennials do not know when they will be able to pay off their student loans. In fact, 15 percent of the people surveyed were unware of their current student loan balances.
Many more did not understand the differences between private and federal student loans. Now, this poll is not bashing millennials, but it is suggesting that student loans can be confusing to understand. Followers of our blog should know there are many aspects to student loan debt.
Fortunately, millennials are a ‘tech savvy’ generation, which means they can make use of free online calculators that are useful for budgeting monthly payments.
Understanding student loan calculators: All student loan calculators have several boxes where users can input information related to their debts. For example, the loan amount (which is the current principal balance of the loan), the interest rate (the percentage of the principal balance that accumulates) and the loan term (the length of the repayment period).
Borrowers can obtain this information from their loan servicers, financial aid office or the Department of Education. Once the information has been obtained, simply plug it into the appropriate boxes. The student loan calculators will display the length of repayment, interest paid and expected monthly payments.
Other student loan calculators: Student Loan Hero has several other free calculators on its website for different purposes. For example, refinancing calculators that help borrowers understand how much they can save each month by refinancing their student loans. There are calculators for comparing different types of student loans and calculating interest during deferment periods. The information we have described above can be used on these calculators.
Want to Avoid Default? It Is Essential to Understand Your Student Loan Payments
If you are struggling to understand student loan payments or how to budget around them, it can be helpful to use one the calculators we have listed. It may sound obvious to some people, but knowing exactly how much is due each month is essential to avoiding default. Other calculators can help plan around unexpected fees, raises in interest rates and other expenses.
For future updates on how to manage your student loans, continue following our blog.
The Kansas City bankruptcy attorneys at The Sader Law Firm can help struggling student and graduates manage their student loan debts.