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. 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 United Marketing Service (UCMS), the number of credit cards for every 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 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, you then should consult a financial advisor in order to get the highest possible return on your money. After you graduate college, you can then use the money you have saved in all your 4 years to pay on your college debt.
Try to use 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.
Consider exchanging work to reduce debt. Perform volunteer work or work for the following in exchange in reducing student loan debt: providing legal and medical services at low income areas, working for Peace Corps or teaching in areas with low income students.
Try to apply for grants. Apply as many grants and scholarships as possible as you 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).
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. 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.