Helpful Tips for Paying your Student Loan Debts
There was actually a recent study to which have been made by the National Center for Education Statistics which shows that about 50% of recent college graduate have student loans which have an average student loan debt of $10,000. The average cost of college increases of about twice the rate of inflation. With its rising costs on college, it is difficult for any aspiring college students in getting enough scholarships and grants in paying for college and also for basic necessities. There in fact are more college students nowadays who are forced at using credit cards to actually pay its basic necessities such as books and also for school supplies. Based on the survey of the United Marketing Service (UCMS), the number of credit cards for each student is 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. Each summer throughout your college education, it is best if you get a job or perhaps an internship. You should then save half of 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. 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 be eligible for different student loan forgiveness programs when you consolidate the student loan.
Consider exchanging work 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 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. If ever you are forced in facing financial hardship, make sure to call the student loan company and inform them on your situation and then ask for a loan deferment so you could get guarantees that your credit will not be damaged until you are able to make the payments again.