Student loan debt is more prevalent than even consumer debt, but student loans are also debt that can be paid off quicker with a little planning.
The average American household owes $31,000 in student loans, double what they owe in credit card and consumer debt. After college, 1 in 4 people are in default or struggle to make their loan payments and 11 million are past due or haven’t made a payment in nine months.
You can start taking control of your debt by making a budget.
Making A Budget:
Using Mvelopes to link your money coming in with the money you spend can help show you how much you have to put toward your debts, whether it’s student loans, credit cards or your mortgage. As you pay off your debts, continue using the freed up money to repay what’s left.
Set A Goal:
Take a closer look at your plan and set a goal to have your student loan paid off in a set amount of time, 3-5 years from now or 3-5 years earlier than the payment plan you’re currently on.
Look For New Opportunities:
Find ways to restrict your spending and add more money to repayment options or go out and find a better paying job or even one that offers student loan forgiveness or repayment benefits.
If you’re not out of school yet, plan ahead so you take on less debt before graduation. February is Financial Aid Awareness month. Talk to a financial aid counselor at your school or make sure you’re receiving the help you’re qualified for and apply for any scholarships that will help reduce your cost of attendance.
Get A Job:
Work while in college to reduce your debt prior to entering the workforce. Even earning $1,000 a month is money that you don’t have to borrow and pay interest on later.
Pay Interest Early:
Pay interest on your loans while in school to avoid any extra surprises after graduation. Any unpaid interest from your time in school is capitalized and added to your balance once you graduate.
Student loan debt can seem daunting, but taking care to plan while in school and stick to a plan after will see you paying off your student loan debt much earlier and with less interest.
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