Helpful Tips for Paying 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 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:
Develop your plans of paying off the student loan debt before you graduate.
Saving money likewise is very helpful. Every summer throughout the college education, you should consider getting a job or an internship. You should then save half of 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. Once that you have graduated in college, you later on could use the money you have saved in all your 4 years for you to pay on your college debt.
Try to use 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 possibly be eligible for various student loan forgiveness programs if 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.
Try to apply for grants. You should try to apply as many grants and scholarships that 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. 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.