by Sara Nash
(Patoka, IL, United States)
Many students receive thousands of dollars in student loans, making it difficult to pay off over time. Some students have no choice but to get student loans, such as myself. The options may be for many to either apply for student loans to earn a degree, or not go to college at all, or be forced to work a minimum wage job.
by Karen
(Augusta, GA, USA)
Many students leave college with significant student loans, and are looking for ways to pay off their loans or student loan debt forgiveness. As a student who did not understand about taking the time to research scholarships and grants, I have accumulated student loan debt over the course of six years.
My initial advice if you think that you need to take out a loan for your education is to speak with the financial aid office to determine what other alternatives are out there for you within the school or based on the degree in which you are pursuing.
The next step would be to read the disclosure and all other pertinent information regarding the loan in which you are approved for (i.e. is the interest rate variable or fixed, when does the repayment period start, and is there an early payment penalty.)
One thing I did not realize is that I did not have to keep the refund checks that were disbursed to me. Send them back to lender!!! There are two benefits to doing this: (1) you will reduce amount of money you owe back to the lender and (2) it will allow for you to have loans in the future should you decide to continue your education at a later date.
The final piece of advice I have for students regarding student loans are if you cannot make your payments on time then you need to communicate with the lender. There are many options in regards to forbearance, deferments, and other loan repayment options that could assist you in being able to take a brief period of non-payment to reducing the financial hardship of a large payment.
Hopefully, this has assisted you in becoming a bit more knowledgeable about the impact student loans can have the income that you are hoping to achieve through obtain a degree in higher education.
Happy Learning and Smart Lending!!
Read more tips on Paying off Student Loans from other students and parents who have been through the student loan process.
by Amanda
(Florda)
The time has finally come. No more late night study sessions, no more ruthless exams, and most importantly, no more Ramen noodle soup for dinner! Four years ago you were pulling away from what used to be your driveway, waving goodbye to your beloved mother while fighting back the tears, and today, it's her turn to hold back the tears as she watches you walk across the stage and put a bittersweet end to your college career. Congratulations, you're officially a college graduate!
A few months of "taking it easy" pass by all too quickly. Finally, you wake up one morning, stumble out of bed, and make your way to the coffee pot. After filling up your mug and taking a few sips, you manage to stop yawning long enough to take a look around. Oh no, there it is: the small envelope containing your first "Hey, we're about to start charging you interest on those student loans" letter. Suddenly, all the horror stories you've heard about people’s student debt drama flashes through your mind. Holding the piece of paper that has now ruined your morning, you realize that the one thing that they never teach you in school is how to pay for it and somehow you've racked up 45,000 in loans... what now?
Well, the first step is to RELAX. Stress and anxiety might give you high blood pressure, but they won't pay off your debts. After taking a few deep breaths and putting an abrupt halt to those unnecessary "worst case scenarios" racing through your mind, you've completed the first step to paying off those loans and you only have 3 more to go!
What is step number 2 in paying student loans 101, you might ask? It's time to budget your expenses. Going out to Applebee's once a week with the guys, hitting the outlets every weekend for a wardrobe update, and spending 200 bucks on that upgrade for the new iPhone are all on top of the "to don't" list. It is crucial to keep track of your spending habits in order to limit them. Spend some time calculating your necessary monthly expenses (rent, groceries, etc.) and make it your new duty to never exceed this limit. Make it a point to look at your bank account and your budget spreadsheet every week in order to categorize all the money going in and out. It's much easier to avoid splurging on things you don't need when looking at your savings straight on.
Step 3: Put that degree to use! It's time to quit your part time, minimum wage job and start your career. Apply for any and all open positions in your field, brush up on your interviewing skills, and take full advantage of any old recommendations or previously made connections (from interning, previous jobs, etc.). A salary income, health benefits, and guaranteed hours will be well worth the effort.
A message for the undergrads: Although you may still be in the process of getting your degree, there is no reason to skip this step. Pick up a few odd jobs that don't require you to take too much focus away from school (babysitting, dog walking, etc.). The extra income adds up and it can't hurt to get a jump start on slowing those increasing loan numbers.
Step 3: Hooray, we have now reached the final step! Although this is indeed the last step, unfortunately, it will not magically make the remainder of your debts disappear. This step is a little more gradual. It's more about embracing your new, no debt lifestyle! Don't be ashamed that your making necessary sacrifices, be proud, be very proud. Whenever you eliminate one loan and receive a debt-paid-in-full confirmation letter, slap it on your fridge like an A+ paper. Stick with your debt free goals, and while you're at it, be impressed with yourself for doing so.
I have covered the most significant factors in paying off your debts, however, I have not covered every factor. To guide you along a bit further, I will list a few additional tips that could potentially aid you on your conquest to becoming debt free.
1. Pay close attention to all paperwork and minor details. Make sure your lenders always have your most recent address, always carefully read all documentation, and always complete forms on time.
2. Increase your payments. Resist the temptation to spend extra money elsewhere, and instead, use it to increase your loan payments. This will reduce the total amount of interest you pay.
3. Consistently stay on top of payments. Missed payments can result in financial penalties, thus setting you back even further.
Eventually, your debts will be paid off—and the only dollar you'll owe is to yourself, of which, you can now comfortably put towards celebrating. Good luck!
Read more tips on Financial Aid Funding from other students and parents who have been through the student loan process.
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