Effective Ways on Paying Student Loan Debts
There was a recent study that have been made by the National Center for Education Statistics to which shows that about 50% of the recent college graduate have student loans that has an average student loan debt of about $10,000. Average costs of college increases for about twice the rate of inflation. With the rising costs of college today, it can in fact be difficult for any aspiring college student in getting enough scholarship and grants in paying for college and for the basic necessities. There are more college students today who are forced in using credit cards in order to pay for the basic necessities like school supplies and books. Based on the survey of the United Marketing Service (UCMS), the number of credit cards for each student is 2.8.
Below are some ways that will help you to pay off your student loan debt:
Developing a plan in paying off your student loan debt before you graduate is very important.
Saving money is likewise very helpful. Every summer throughout the college education, you should consider getting a job or an internship. Afterwards, you should save half the money in a high interest savings account. After several months, be sure to consult with a financial advisor for you to get the highest possible return of money which you saved. After you graduate college, you can then use the money you have saved in all your 4 years to pay on your college debt.
See to it that you have caution on consolidation. When you consolidate student loans, it will combine your loans to just one payment, but this may or may not provide you with lower interest rate. Be sure to do extensive research before you consolidate your student loans. Another addition is that you may not be eligible for different student loan forgiveness programs when you consolidate the student loan.
Exchange work for you to reduce debt. You should consider performing some volunteer work or work on the following in exchange to reduce student loan debt: teaching at locations that has low-income students or areas that have shortages of teachers, providing legal and medical services at low income areas or perhaps working at Peace Corps.
Try to apply for grants. Apply as many grants and scholarships as possible as you could. You also could apply for federal grants like Federal Pell Grant (Pell Grant), Leveraging Educational Assistance Partnership (LEAP), Federal Supplemental Educational Opportunity Grant (FSEOG) and also the National Science Scholars Program.
Make sure that you also protect your credit. You should try to avoid making late payments on your student loans because this actually will be reported on your credit report and this could in fact remain up to 7 years. In case that you are facing financial hardships now, see to it that you call the student loan company and then inform them about your situation and ask them for a loan deferment so you will get an assurance that your credit is not going to get damaged until you could make the payments again.