How do I Keep Track of My Education loan Balance and Repayment Status
How do I Keep Track of My Education loan Balance and Repayment Status .Education loans are very important in supplementing the dream of the students in procuring their dream education. As these loans can assist you in managing extra expenses immediately after arriving at college, such credits imply the subsequent repayment after graduation. Educational loan management is not an easy task as it is paired along with several other expenses, multiple jobs or a fresh start. One is required to monitor their credit outstanding balance and repayment status to reduce pressure in the future.
Here in this guide, we will give you tools to efficiently track your education loan balance, repayment progress, and timely payments.
1. Pay careful attention to understand the details of your loan.
However, there are certain factors which you need to know before tracking your loan balance all through the exploitation of your terms and conditions of the loan. This includes:
Loan amount borrowed
Interest rate whether fixed or floating
Repayment period (the time prospective borrower will take to clear his or her loan)
Repayment holiday or grace period (the time between the end of the graduation and the first time the borrower has to start repaying loans)
Installment amount and frequency or M.E.M.I. – Monthly Equated Installments and fixed payments.
These details assist you in predicting as to how much you are likely to pay, how much interest would be compounded, and how much you are likely to pay in every month.
2. Lender’s Online Portal
All banks and most financial institutions have a website where you can log into and see your loan account. These portals often provide a dashboard with the following information:
Current loan balance
Amount of interest accrued
Payment due dates
Remaining tenure
Total amount paid to date
It should become a habit to visit this portal at least once in a while, if not every month to see if there’s any changes on the status of your loan. This is particularly useful if you take a loan that is likely to attract a flexible interest rate or if you pay some extra amount towards the loan balance than the agreed regular payments.
3. Set Up Payment Alerts
Almost every credit provider lets you choose the option of receiving an email or an SMS for payment reminders, for due and for successful payments. These alerts are handy to avoid late charges and extra interest because the system keeps you posted on the due dates and if you have made the payment.
This is also well done through a phone calendar or using a Task List to create a reminder a few days before the next payment due date.
4. Use Mobile Banking Apps
All the banks and lenders have made their own applications where the customers can monitor the loan details. These apps offer similar features to the online portal, including:
Real-time balance updates
Payment history
Loan interest tracking
Repayment schedules
Perhaps, using the mobile app of work payment, one has no chance of missing a payment deadline due to busy schedules.
5. Create a Loan Spreadsheet
However, if you fancy a little more of tracking then you could make a spreadsheet where you record balance on your loan and repayment. Using programs like Microsoft Excel or Google Sheets, you can set up a simple sheet that includes:
Monthly due date
Loan balance in the beginning of month
Interest accrued
EMI paid
Outstanding amount that will be paid
This spreadsheet may also be used for wed show the effect of applying additional payments to a loan’s principal balance. Supplementary payments pay off sections of the loan, so the total amount of interest that will be charged on the loan account is lessened.
How do I Keep Track of My Education loan Balance and Repayment Status
How do I Keep Track of My Education loan Balance and Repayment Status
6. Watch the Compound Interest of Your Loan
This is a major component of your loan that you need to monitor – the interest. If left uncontrolled for long, it can greatly raise the figure you owe to astronomical amounts. By monitoring the interest accrued each month, you can:
Get to know the proportion of your EMI that is offered towards the principal amount and interest.
Other important decisions also contain a decision to part of installment ahead with an intention to pay the principal part and avoid high interest charges.
Do not capitalize the (interest added to the principal balance) which occurs if you avoid or delay your payments, or let your interest, bypass your grace period.
7. Supplemental Pay Whenever You Can
If you can afford to make additional payments, the best thing to do is make a little more than the average monthly payment to your loan balance to drastically affect it. The bonuses can go towards paying the principal reduced by which interest is charged upon. This way, over time, there are great amounts of money that you save and also whose repayment of the loan, helps you to clear it within the shortest time possible.
Try to make one or more additional payments at the beginning of your loan repayment schedule, if possible. This means, the more time it takes for you to reduce the principal amount, the larger amount of interest you will attract.
8. Use Loan Management Tools
There is also a variety of financial applications and loan management as a borrower can use to manage his loans effectively. Tools like Mint, Cred, or specific loan calculators can:
Monitor several facility from various organizations
Co-creating a repayment scheme
Send reminders for payments
Explain what happens when one pays an amount more
Predict when you are going to finally be out of debt
These tools are very helpful especially if one has several loans or other obligations that one has to meet as he/she attends school besides repaying an education loan.
9. Monitor Your Credit Report
May also use their credit report to monitor how the particular loan is being handled or not by frequently reviewing it. This means that, your outstanding balance of your education loan will reflect in your credit report and whenever you default in payment, it will dent your credit score. Monitoring your credit report ensures:
Your loan balance is accurate
All reported payments are in the right amount
In the list of Commission’s findings and recommendations with references, there are no omissions, mistakes and contradictions.
Each of the major credit bureaus is required to furnish you with one free credit report once a year. This is the best time to go through the credit report and ensure your loans details.
How do I Keep Track of My Education loan Balance and Repayment Status
10. Communicate with Your Lender
In case if you are financially constrained to make your payments towards your loan, then it is advisable to talk with the lender. Many lenders offer:
Loan forbearance: A temporary pause on payments
Deferment options: Delayed payment without the incidence of any additional interest (in some cases)
Loan restructuring: Prolonging the period through which you are suppose to complete repayment of the outstanding balance so that the monthly repayments are reduced.
The above options can assist you to manage your finances and not be pushed to mess up your credits.
11. Budget for Loan Payments
In order to avoid falling behind on repaying your loan, you need to develop a budget that will necessarily include this aspect. It is also important to set just a small portion of your earnings to take care of the monthly loan. This will guarantee that you pay your loan on time like other essential bills that are paid such as rent, food and electricity bills.
12. Plan for Tax Deductions
Depending on the country you reside in, it is possible that you’re able to claim the interest paid for an education loan as deductions in tax. For instance, In India under Section 80E of the Income Tax Act the interest on education loan availed can claim up to eight years from the financial year of availing the loan. Be sure to record your interest payments and be advised by a tax expert you on the various benefits availed to you.
Conclusion
However, getting a handle on your education loan does not have to be all that complicated. If you make a habit of checking your balance, creating a reminder, and staying organized you will be able to manage on your loan properly without contributing more than necessary to extra stress. Currently, there is a variety of techniques that will help you understand your loan’s terms and conditions, such as internet banking, mobile applications, and personal tables. This can be achieved by always paying more or simply avoiding interest charge to accrue for long time for which could make you to make small budget adjustments.
To sum up, it is crucial to be careful about your education loan similarly you attend to other financial responsibilities and therefore it doesn’t only help one to be financially stable but also wealthy in another way.
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