There is possibly no greater feeling than paying off your student loans except maybe paying off your mortgage. Student loan debt effects 19 percent 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 over a trillion dollars 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. Let’s find out how to get started.
- 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. 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.
- 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 forgo making loan payments for a certain amount of time. This is not a permanent solution but a possibility if you’re going through hardships.
- 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.
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 this advice. 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 effected. Contact us today to discover how we can help you.