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. Average costs of college increases for about twice the rate of inflation. Due to the rising costs on college, it can be difficult for any aspiring college student to get enough scholarship and grants for paying college and for 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 with the United Marketing Service (UCMS), the average number of credit cards per student would be 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 the college education, you should consider getting a job or 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. After you graduate college, you can then use the money you have saved in all your 4 years to pay on your college debt.
Try to use caution on consolidation. When you consolidate student loans, it will combine your loans to just one payment, but this may or may not provide you with lower interest rate. Also consider doing extensive research before consolidating 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 for you to reduce debt. Try to consider some volunteer work or consider working for the following areas in exchange to reduce student loan debt: providing legal and medical services at low-income areas, working at Peace Corps or in teaching at locations that has low-income students or a shortage of teachers.
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.
Be sure to also protect your credit. As much as possible, avoid making late payments with your student loans as this will be reported on your credit report and could remain in it 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.