Managing Your Student Loan Online Can Pay Off

Monitoring and paying your student loan online brings you conveniences of speed and up-to-date information. Instead of waiting for weeks or months for your student loan bills, balance updates or status change notifications to arrive, turn to the loan management services offered directly online by the Department of Education and private loan providers, such as Sallie Mae.

Stay Informed

One of the most prominent benefits of managing your student loans online is the wealth of personalized information at your fingertips. Through the federal Direct Loans website, you can view your complete payment history, including number of payments made, method of payment, date and related fees.

The information is also broken down by payment amount and separated into interest vs. principle payments. This information is valuable and shows how much of your loan bill really goes to interest and may offer you the incentive to pay off your debt sooner. You can also change your repayment plans or method of monthly payment online.

Sallie Mae offers similar online services, as well as the option to apply for reduction or postponement of payments and monitor your loan benefits online. Some lenders choose to use third parties to manage loans online, but offer many of the same benefits of managing the bill on the Internet.

Monetary Payoffs

Not only does managing your student loan afford you the same incentives of portability and immediacy that paying other bills online does, but it also brings concrete dollar rewards. The Federal Direct Loan program reduces interest rates by 0.25 % to enroll in its Electronic Debit Account (EDA) system. The EDA system will automatically withdraw the monthly loan payments from your bank account. You can enroll in this program online or by mail.

The online option gives you the convenience of monitoring when your last payment was made via EDA and also allows you to update your bank account information. The information is helpful if you're planning on switching banks in the course of your repayment period. Managing your loans online also gives you access to information that can have further financial benefits.

The Direct Loans site allows you to immediately download your IRS Form 1098-E, which shows how much interest you have paid on your loan annually, an expense that is tax-deductible.

No Need to Get Lost in the Shuffle

Chances are you will move between graduation, and making the final payment on your student loans. In the move, many times mail is held, misdirected or lost. If you use online payment systems, you can always make timely payments. That way you won't have to worry about your bill going to the wrong place if your mail isn't properly forwarded to the new address.

Need a Student Loan? Click here!
blog comments powered by Disqus