It’s not easy being a single mom as you often face challenges like managing unexpected expenses without extra income from a spouse apart from the burden of caring for the child. But it is the time that you stop making excuses and begin to take charge of your life and of your baby. But your situation can take an adverse turn if you financially default on your college loan payment.
How can single mothers pay off student loan debt?
You can apply for grants designed for women to overcome your financial problems. These days, many single moms take advantage of the college grants offered to the women to complete their education and pay off their college debts. These grants are offered on the basis of merit and your financial need. Now, learn some tips to get rid of your college debts.
Know the type of your loan
If you plan to get out of debt quickly, then you should track the balance and repayment status for each of your student loans. You can determine your options to pay off your debts with the help of these details. If you have a federal loan, then you can visit www.nslds.ed.gov to know the loan amounts and repayment status on your debt. If you have a private student loan, then you can check the billing statement.
Gather some knowledge
There are different grace periods on different student loan program. A grace period is the time span that you can wait for after leaving college before you make your first payment. Remember, if you have federal Stafford loans, then the grace period is six months and nine months for Federal Perkins loans. You can check the documents on your private loans as the grace period might vary on this type of loans.
Determine a method
If you have multiple payments, then you can consolidate your student loan debts. If you have federal student loans, then you can consolidate your debts through the direct loan program offered by the federal government. You can consolidate your private student loan with a low-interest loan from a private lender. Avoid consolidating your private and federal student loan together as you’ll not be able to get the benefit of all the repayment options and borrower benefits – like unemployment deferments and loan forgiveness programs offered with federal loans.
A portion or all of your federal student loans will be forgiven with the help of various programs offered by the government if you work in certain fields. According to the Public Service Loan Forgiveness, your student debt will be forgiven that is remaining after 10 years of qualifying payments for the government, nonprofit, and other public service employees.
How can you manage the debt on your own?
At first, you should calculate the total amount of debt you owed. Make a list of all the debts and the interest rates of each of the debts. Then balance your debt against your monthly income and make a payment plan according to the result.
Pay off your debts with debt snowball
If your debt amount is not big, then you can go for the debt snowball method. In this strategy, you need to first pay off the accounts with the smallest balances while making a minimum payment on your larger debts. When you have successfully paid off the small, you can pay off the larger debts. Thus, you’ll be able to clear your debt gradually.
Assess your monthly payments
If you find that your monthly income is lower than the monthly payments, then you must try to lower your monthly payments. How can you do it?
You can take out a consolidation loan at a lower interest rate to consolidate all the high interest debts into the loan.
You can request your creditor to extend the loan term. Tell your financial hardship and convince the creditor.
Seek help from government and non-profit organization
Some government programs and non-profit organization help to low income or unemployed single mothers to get out of debt. You’ll be eligible for some scholarship programs that are mainly designed for single mothers. Many states offer basic living expenses to single mothers as well. So search well and get information to get help from government and non-profit organization help.
Debts are troublesome, but you can get rid of it. You just need to become a bit calculative and financial knowledge. Read financial articles to know more about a perfect single mother’s personal budget. Thus, you can enjoy a debt free single motherhood that you always desired.
Amy Nickson is a web enthusiast. She is associated with ovlg.com where she shares her expertise through her crisp and well-researched articles on a regular basis.