As you probably know, Sallie Mae is one of the leaders in helping students pay for college. They have a pretty widespread social media presence, and they offer a veritable encyclopedia of tips and advice for minimizing debt and paying for your education. Recently they offered three “debt-savvy” tips which apply just as readily to car loans as they do to student loans:
- Graduate on Time: if you need to repay an auto loan, graduating on time is key. The sooner you graduate, the sooner you will find your first postgraduate job and start making enough income to pay off your debt in larger installments.
- Make Payments While Still in School: you are not required to begin paying off federal students loans until 6 months post-graduation. However, you must begin paying off student auto loans as soon as they are funded. If you are receiving help from your parents to pay off the loan, you may want to ask them to help you pay more than the minimum amount per month required (if it’s not a financial burden for them). That way, you will have less to pay off once you are making the payments all on your own.
- Keep Track of Paperwork: this is KEY. You must stay organized. Missing auto loan payments can quickly damage your credit, and could even lead to a repossession – a real stigma on your credit report.