Effective Tips to Pay your 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. Due to the rising costs on college, it can be difficult for any aspiring college student to get enough scholarship and grants for paying college and for 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.
What you will learn below are some tips that will help you to pay your student loan debt:
Consider developing a plan to pay off the student loan debt before you graduate.
Saving money is also 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 college, you could then use the money saved in all 4 years for you to pay down your college debt.
See to it that you have caution on consolidation. If you consolidate student loans, this is going to combine your loans to only one payment, but this could or could not give you lower interest rates. Make sure to also 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 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.
Try to apply for grants. You should try to apply as many grants and scholarships that you possibly could. You may also apply for the federal grants like the Federal Pell Grant (Pell Grant), Leveraging Educational Assistance Partnership (LEAP), Federal Supplemental Educational Opportunity Grant (FSEOG) Program as well as the National Science Scholars Program.
Be sure to also protect your credit. As much as possible, avoid making late payments with your student loans as this will be reported on your credit report and could remain in it 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.