Figuring Out How to pay for student loan debt is as difficult and essential a decision as the college you choose, whether to live off or on campus and what to major in. You have to come up with thousands of dollars before you can even set foot on campus for orientation and that’s no easy task. Student Loan Debt is definitely the least fun part of the whole process.
Student loans bridges the gap between what you’ve saved , the scholarships you get, The part-time job you have and The amount leftover that you cannot pay yourself.
The advantages to borrowing for school seem limitless. You’ll be able to go to the college you want to go so badly and pick that program you long for. You won’t have to work as much while in school because you’ll have funds readily available if all your expenses are covered by your loans.
Because of this you’ll be able to study more, work unpaid internships or engage in extra-curricular activities where you can explore several career fields that you normally wouldn’t have had that much time for.
It all sounds great while your in school until afterwards. Then reality hits and all that Student Loan Debt smacks you in the face. You will likely not get a job right away and things can get tough. You start wishing you had payed for more and not borrowed quite so much.
That’s not to say that student loans are bad though. They have funded many great educations and they’re certainly helpful to those who cannot pay on their own.
The key is to be educated on the very best way to deal with the debt as fast as possible. You have plenty of good options and that’s what I will discuss in this post.
Let’s take a look at what you can do to deal with your debt responsibly~
MAKE A PLAN AND TAKE STOCK OF YOUR STUDENT’S LOAN DEBT
It’s normal to want to avoid the reality of the amount you owe; you should however have a clear understanding of your student loan debt so you’ll know how to pay it off. To find the interest rates on your loans and the total principal sums remaining; access your loan servicers’ sites. Also include your credit card. To know the exact amounts you owe and to whom, get a list of all your debts and total it. After this is done, you can now think of plans to pay it down as fast as possible.
TO INCREASE YOUR PAYMENTS CONSIDER PICKING UP EXTRA WORK
Instead of the normal 40 hours, consider the workweek a 50 to 65 hours week. Working as a freelancer or having a part-time job together with your full-time position will earn you more income that you can use to pay off your Student loan Debt. Use the extra income to pay for your loan debt only.
It sounds pretty rough to work so much right out of school but it’s a good and responsible option. There are other ways to make extra money as well. You can try to earn online by doing paid Surveys, Blogging, Selling on Ebay and Etsy and using sites like Ebates. You have to think outside of the box and these can create a lot of extra money.
WORK FOR AN ORGANIZATION THAT WILL HELP
There are several organizations out there that are tailoring all their offerings to Millennials with student loan debts. Just do some research and you’ll find many that may be able to help.
GIVE UP THAT IDEAL LIVING SITUATION
Get real with the type of place you want while in debt – you don’t need to try to buy your dream home straight out of school. Sharing an apartment with a friend or staying in your parent’s home for awhile won’t hurt a bit. Forget that one to three-bedroom in the big city and live cheaper as you pay off that debt. Doing this will allow you put more towards your student loan debt and you will be happy you did later.
PUT A HOLD ON YOUR LUXURIES
Go back to your budget and cut out expenses that are not necessary such as eating out, travel, parties, clothes, and cable TV. Evaluate where most of your money is going and how you can cut corners.
Student Loan Refinancing
In the past few years, different private lenders have been offering student loans refinancing. The refinancing rates begin as low as 2.0% for qualified individuals. You can reduce the costs of your student loan debt; by refinancing the loans at a very low interest rate. This is SUPER helpful and everyone with student loan debt should go this route. One company called SoFi specializes in this and they have extremely low rates. They are the best and they give out other loans as well so you can work with them again in the future when you are ready for that big beautiful house. You can check out SoFi here.
Credible is also another option and they are essentially the biggest name in the industry for student loan refinancing. They also have kick ass rates that can’t be beat. You can take a look at their site here.
You can pick a new term repayment period (term length) when you refinance student’s loan debt. The repayment period ranges from 5 years to 20 years typically but vary by lender. Also, selecting a shorter period will reduce your total cost more. Most lenders don’t charge any origination, pre-payment, or application fees.
REDUCE THE RATES OF YOUR INTEREST
To reduce your interest rates, sign up for automatic payments. Most loan services will cut down your interest rate by 0.25% usually, when you do this. It’s not a lot but every little bit helps.
VOLUNTEER YOUR TIME
You could earn rewards or raise funds by volunteering your time; to repay your student loan or possibly to receive eligibility for loan cancellation or forgiveness. E.g. Peace Corps, AmeriCorps, Zerobound and SponsorChange all offer programs.
LEVERAGE THAT TAX REFUND
It’s very tempting to have your tax fund spent on purchases you had always wanted or on a night out, instead, use this to pay off part of your loans. Take that cash and deposit it in the loan debt immediately when you receive it.
For most individuals with student loan debt, there is no easy and fast solution. However, having a positive attitude and creating a plan, will keep you on that journey of becoming free of debt.
I hope your Student Loan debt doesn’t become too painful for you! They’re pretty rough on me but Refinancing has helped. Do you have any suggestions for paying debt? Comment below and let us know how you did it!
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