Effective Tips to Pay 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. 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 likewise is 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, consult a financial advisor so you are able to get the highest possible return on the money 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.
Be sure to have caution with 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. Also consider doing extensive research before consolidating 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. 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.
Consider applying for grants. You should try to apply as many grants and scholarships that you possibly 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.
Be sure to 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. 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.