Managing Your Student Loan
As a new student, the last few months have been filled with school and Student Revolving Loan Fund (SRLF) applications and visa appointments. Finally you are ready to start your programme. Apart from getting good grades, you also have the budgeting of your student loan to consider. You may have been granted up to fifty thousand dollars ($50,000) from the SRLF and you may have loans from other institutions or individuals you have to repay. The next few years will fly by a lot faster than you think and the reality of balancing your student loan(s) with your other possible expenses: car, mortgage, children and so on will soon kick in. Here are a few tips on managing your student loan to reduce the financial burden.
- Don’t acquire a loan unless it is necessary. If you are attending the University of the West Indies (UWI) for a first (1st) degree, you may be able to handle your expenses without a loan. Choosing to take the loan for a little extra party money may become an unnecessary burden. Accessing a SRLF loan is a personal financial decision that you will have to make based on your circumstances and future academic plans. If you decide to pursue studies at a higher level, monies borrowed for your undergraduate studies will be a set back when you are ready to tackle studies at the post-graduate level, where the costs are significantly higher.
- Start to repay your loan during your grace period. Your loan has a grace period, which can extend from six (6) months to one (1) year after the completion of studies. No interest is charged during the period of study, which means any early repayments made will go directly towards your principle. Immediate repayment of two hundred dollars ($200) per month on a fifty thousand dollar ($50 000) loan disbursed over a three (3) year period of study will reduce interest payments by at least two thousand five hundred dollars ($2,500), while reducing overall monthly payment by about sixty five dollars ($65) per month. Everyone may not be able to do this, but it is a viable option, especially for those students who are working and studying either part-time or distance.
- Start repayments when you are due to start. You will receive a letter from the SRLF notifying you of the start time. You can also contact us upon completion of your studies to confirm your start date so that you can budget for the monthly repayment amount.
- Communicate with the SRLF. If during the course of your studies, you wish to change institution or programme, it is important to inform the SRLF first. If you do not consult the SRLF, it may result in the cancellation of your loan and a change in repayment arrangements. Please see the conditions outlined in your contract or contact your Loans Officer to discuss the details. If during repayment, you run into financial difficulties, contact our Credit Unit and a Credit Officer will be more than willing to work with you. Further information along with the contact details for the Credit Officers can be found at http://srlfloan.edu.bb/Repayment/CreditUnitPersonnel.aspx.
The SRLF is staffed by well-trained and courteous staff who understand the difficulties that you may experience financially. Please don’t hesitate to contact us with any queries; whether current or future, you may have regarding your loan. We at the SRLF hope you have a successful first semester!