You probably know that you can find a loan calculator for your student loan repayment, but do you know how to use it?
A new report by the Center for Responsible Lending and the Federal Reserve Bank of Dallas estimates that over half of Americans can’t even figure out the terms of their student loan payments.
That means that, in addition to making mistakes like not remembering to add a certain amount of interest to your student loans to get the loan forgiven, too many borrowers are using the same calculator to make incorrect payments, as shown in the graphic below.
The Center for Responsibility and Empowerment has released a new report called “What to Do if Your Student Loan Payments Are Out of Balance,” which details how students should avoid mistakes like this.
The report outlines several steps that borrowers can take to avoid making incorrect payments.
For example, students can double-check the amount of money in their bank account before paying any student loan balance, or they can ask for additional documentation when making a payment, such as a check, or a check stub.
If the loan is currently delinquent, students should also be cautious about taking out more than $1,000 in student loans in a month, the report notes.
These are just a few of the tips that you should keep in mind when making payments, the authors note.
You can learn more about student loan forgiveness by visiting the Federal Student Aid website.