How Can You Pay Your Child’s Student Loan?

How Can You Pay Your Child’s Student Loan?

An undergrad degree in Singapore is worth more than it simply being a paper. This educational degree is what will lead to landing a dream job as well as secure your future. This could be the reason motivating as many as about 90% of parents. These parents consider undergraduate degrees as a necessary educational qualification fitting for their children.

What is more, as many as 83% of the parents will be ready to send their youngsters abroad for their education. Even so, 42% of these parents may not have enough money saved up for funding the youngster’s higher education. This information has been derived from a report done for HSBC‘s Learning for life.

In these instances the only option available for parents. More so when they are not able to afford higher education for their children. They have to borrow a loan which puts a load on them to fund their kid’s student loans.

The issue here, however, is how you will repay the loan. This is after you have paid for your children’s education with the loan.

Make a Budget

When you want to pay off the student loan as fast as possible. The best way to get you started is by taking the planned approach. To do this, you will need to make a working budget. Keep in mind that a good working budget can help you in saving more, monitoring your expenses. It will also ensure that you repay the premiums regularly. Here is a way you can come up with your budget.

  • Work out the sum of all your income. This needs to include the earned income, income you earn from house properties and investment dividends.
  • Write a list of all your monthly expenses. This will be easy because you have kept track of your expenditures.
  • Then divide the sum of income with the necessary expenses. This will include expenses such as transport, home utilities, and grocery.
  • Set aside some amount for loan repayment. Make sure that you put aside enough money to cover the minimum premium repayment.

Utilize your Bonus

When you get a bonus from your employer. Rather than you make big purchases or spending. You can use put it as a lump-sum for the loan repayment. This will significantly help you reduce the loan balance.

Save More

When you wish to repay your loan within a short time possible. The first thing for you to do is saving more. This might be rather challenging since there are many responsibilities and expenses to manage. However, here are some ways to help you save more.

  • Reduce your Expenses

First, identify those areas you are spending money on. Then look at the areas that you can reduce your expenditures. For instance, if you regularly buy ice-cream, candy, and chocolate boxes. Such buys are luxury expenses that can be reduced.

Likewise, determine those expenses that will be considered luxury expenses and are not necessary. Then you cut them down. Besides, look at other expenses that can be reduced. For instance, rather than taking a cab, you can use public transport for travel needs.

  • Monitor Your Expenses

To start monitoring all your expenses. This will help you know the areas that you are putting your money.

  • Give more than your Minimum Premium

You need to realize that the more money you pay, on your loan the interest charged reduces. So instead of maintaining the minimum amount payable to pay off your loan. You can focus on paying more. Below are some ways that you can use to do that.

  • Get a better paying job to help increase your earnings. This will mean you can pay higher premiums.
  • Save more to ensure that you gain extra funds which will increase your repayments.
  • Hone the best from your budget to increase your monthly or even bi-weekly premium repayment.
  • Consolidate your Debt

When a student loan among other debts you have taken. Then you may want to consider consolidating all your existing personal loans. You could be having a personal loan, home loan, and even medical debt. In this scenario, it is wise that you merge all your debts into a single one. In so doing, you will be able to better handle the repayment. You even may be able to ask for your interest rate to be revised for a better one.

It important that your child gets educated and this needs not to end at the schooling level. Undergraduate and postgraduate education will count as well. Thus your children need to attend college as well as the university. By acquiring higher education, it will improve your children’s career prospects. However, when you consider taking out a student loan. You will then have to take all the necessary steps for you to repay it quickly.

  • Your Child can Pitch in

Since you will have taken the education loan to take your child through their studies. You could ask that they pitch in. By taking a side-job or even a work-from-home your child can earn some cash which they can put some to help settle the loan. When this is done right, the side job will not disrupt their education. This will also prepare your child for adult life. A side job will also help teach your child to be financially accountable. It also is a good chance for some good parenting.

With the extra income coming in from your child, it will be very helpful in repaying the education loan as fast as possible.

Work With The Best Moneylender

When you burdened with a home loan, student loan, or even a personal loan. You can consider the debt consolidation loan from a reliable money lender. Make sure you do some research for a moneylender who is providing debt consolidation loans at a suitable rate. When choosing the right and legal lender, ensure you choose one who has been in the market for a long time. This will guarantee that you get a tailor-made loan deal to fit your needs.

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