4 Tips for Paying Off Student Loans
There is possibly no greater feeling than paying off your student loans except maybe paying off your mortgage. Student loan debt affects 19% of American households, double the amount effected in 1989. With rising tuition costs and the need for workers with college degrees, it is no surprise that student debt has reached $1.6 trillion as more students turn to borrowing money.
On average a college graduate can expect to leave their higher education institution with a degree and a $25,000 outstanding bill. Some students may not realize that there are ways to get started on paying off your student loans early. This doesn’t mean you should stop making payments toward your other debts, but start paying your student loan as soon as you can. The tips below will help you pay back your student loans.
Start Setting Money Aside Early
If you are a working college student consider setting some money aside each month. In addition to accumulating an emergency savings fund, you can also use it to make a large student loan payment once you begin making payments. Should you not immediately find a job this fund could help cover your minimum payments when you need to start paying back student loans. If you save $50 a month for four years you will have $2,400 by graduation.
If You Have Multiple Loans Consider Consolidating Them
Federal student loans may be consolidated through the government. Private loans may be a bit more difficult to consolidate, but if you took out small loans to pay for books each semester, you might be able to use a debt consolidation loan to merge your multiple payments into one.
Consolidating student loans involves combining multiple loans into one, typically to simplify repayment and potentially lower interest rates.
You can follow these steps to consolidate your student loans:
Research loan consolidation options: Investigate federal and private loan consolidation programs, comparing terms and interest rates.
Assess Eligibility
Ensure you meet criteria for chosen program(s), including credit score, loan types, and repayment status.
Gather Documentation
Compile loan details, personal information, income verification, and credit history.
Choose a Repayment Plan
Select from available options, considering monthly payments, loan term, and overall cost.
Apply for Consolidation
Complete application with chosen provider, submitting required documentation.
Await Approval
Monitor application status and respond to requests for additional information.
Review New Loan Terms
Carefully read and understand the consolidated loan’s terms and conditions.
Sign Agreement
Confirm acceptance of new loan terms by signing the agreement.
Notify Old Loan Servicers
Inform them of the consolidation to avoid miscommunication.
Begin Repayment
Make timely payments on the consolidated loan, adhering to the new repayment plan.
Explore Your Lender Options
What some students may not realize is that forbearance and deferment might be an option depending on your lender.
Economic hardship, unemployment, poor health, and various other reasons may allow you to stop paying back student loans for a certain amount of time. This is not a permanent solution but a possibility if you’re going through hardships.
Consider a Personal Loan to Make Paying Your Other Debt Easier
Typically, you can’t and shouldn’t consolidate your student loans into a regular debt consolidation personal loan.
Still, if you’re having a hard time tracking and paying your debts, consolidating your other debt could help if you use a low-interest, low-payment debt consolidation loan.
Many lenders offer debt consolidation and credit card payoff loans, but some lenders offer better deals than others.
Check out the consolidation loans from the lenders below to find the best loan for debt consolidation.
Get Creative
Post-grad life might not be what you expected. Maybe you landed a job, but it isn’t pulling in as much money as you hoped and you find yourself living back home or you found a job in a completely different field.
Whatever the case may be it’s time to get creative about where your funds are coming from. Start babysitting the neighbor’s kids, moonlight as a bartender at a restaurant, become a tutor, or start your own mini business. Sometimes you have to branch out into unfamiliar territory to start making a dent in your debt.
The Bottom Line
Although the average student has over $20,000 in student debt, there are many who owe more than that. If you’re a parent whose child is set to start college soon be sure to have them follow some of these tips for paying off student loans.
A college education should not have to mean lifelong debt. If you’re a recent graduate, AmONE can help you get connected with debt consolidations services that might help cover your student loans.
Credit repair may also be an option if you’ve been unable to pay your debts on time and your credit has been affected. Contact us today to discover how we can help you pay off your student loans.
