Effective Tips to Pay your Student Loan Debts
There was a recent study that has been made by the National Center for Education Statistics that shows that about 50% of recent college graduate have a student loan that has an average student loan debt of about $10,000. An average cost of college increases 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 with the United Marketing Service (UCMS), the average number of credit cards per student would be 2.8.
Below are some ways that will help you to pay off your student loan debt:
Develop your plans of paying off the student loan debt before you graduate.
Saving money is likewise very helpful. Every summer throughout your college education, you should consider getting an internship or a job. 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. Make sure to also do extensive research before you consolidate your student loans. Another addition is that you may not possibly be eligible for various student loan forgiveness programs if you consolidate the student loan.
Exchange work so you are able to reduce debt. Try to consider some volunteer work or consider working for the following areas in exchange to reduce student loan debt: providing legal and medical services at low-income areas, working at Peace Corps or in teaching at locations that has low-income students or a shortage of teachers.
Consider applying for grants. You may want to consider applying to many grants and scholarships which you possibly could. You could apply for the federal grants like the National Science Scholars Program, Federal Pell Grant (Pell Grant), Federal Supplemental Educational Opportunity Grant (FSEOG) Program and the Leveraging Educational Assistance Partnership (LEAP).
Also consider protecting your credit. Avoid making late payments with your student loans because this is going to be reported on your credit report and could remain even up to 7 years. When you are faced with financial hardship, try to call the student loan company and then inform them about your situation and ask for a loan deferment in order to get assurance that your credit is not damaged until you could start making payments.