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. 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 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 United Marketing Service (UCMS), the number of credit cards for every student is 2.8.
Below are some tips to which could help you in paying 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. Each summer throughout your college education, it is best if you get a job or perhaps an internship. 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. 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.
See to it that you have caution on consolidation. Consolidating student loans will combine your loans to one payment, but this may or may not give you lower interest rate. 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.
Exchange work so you are able 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 may also apply for the federal grants like the Federal Pell Grant (Pell Grant), Leveraging Educational Assistance Partnership (LEAP), Federal Supplemental Educational Opportunity Grant (FSEOG) Program as well as the National Science Scholars Program.
Make sure that you also protect your credit. Avoid making late payments with your student loans because this is going to be reported on your credit report and could remain even up to 7 years. When you are faced with financial hardship, try to call the student loan company and then inform them about your situation and ask for a loan deferment in order to get assurance that your credit is not damaged until you could start making payments.