How to Get Rid of Student Loan Debts
Dealing with student loan debt is difficult and many people are aware of the student loan crisis which is currently being faced by Americans. An amount of $1.3 trillion is owed by Americans as student loan debt and the figure is constantly increasing and is going over credit card debt and even car loans.
70% of college students will be completing their education by carrying a student loan debt of $37,172. The figure is even higher for students that pursue advanced degrees and around 19% of all borrowers will be owing $50,000 or above with around 5.6% exceeding the figure of $100,000.
Getting rid of student loan debt is not an easy task but knowing how to manage your student loans in a better way and paying them off faster to lead a debt-free life is always a better option. Here are some tips to deal with student loan debt.
Taking advantage of the grace period of student loan debt
Lenders are known to grant a grace period for the student after he or she graduates when they are not required to make any payments towards the loan. Students who are trying to get rid of student loan debts must avoid using the grace period and begin paying off the loan as early as possible. The early payments will give the individual a head start and moreover will make them accustomed to set aside the installment of the loan at the beginning of every month.
Continue living a college lifestyle
Students have a tendency to believe they deserve a better lifestyle after they have completed their graduation. They should rather look to understand their debt situation and work towards clearing their student loan debts. They would have led a simple life in college and there is no reason why they cannot continue doing the same thing after they have graduated. They can pay off their student debts faster if they carry on living a frugal life even after college.
They can continue living with roommates to share the rent and other expenses and skip some of the pricey habits they are likely to pick up. They will need appropriate clothing for work but they are advised not to go overboard with the purchases. They can invest in a few pieces of good quality outfits for use during working hours and stick to the cheaper outfits when they are not working.
Creating a budget for the payment
After students get an inkling about what their income is going to be they can create a monthly budget along with a plan to stick with it without exceptions. When creating the budget students are advised to allocate at least funds towards the student loan debts and continuously find ways to try and save money which will help them but more towards the debt payment.
Try to earn more money
Earning more money is easier said than done but students are required to understand they cannot depend on their income from the job and will need to make attempts to generate more revenue in order to clear their student loan debts. Here are some ways they can make an attempt to achieve their objectives.
Students who are currently employed must try to negotiate a better salary or a promotion or at least assume additional responsibilities at the job to earn more money.
- Pursue opportunities for extra shifts and/or time.
- Send out applications for jobs offering higher salaries.
- Start their own business according to their personal interests.
- Get involved in work from home jobs during off hours from their employment.
Students that are interested in getting rid of student loan debts faster will find several opportunities available to them if they display a willingness to become involved in different activities. They can also reduce their taxable income by $2500 on the interest they had paid towards their student loan debts which will be a small figure but will prove helpful in every way.
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