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Here’s How To Lift The Weight Of Your Student Loan

28 June 2016 No Comment

canstockphoto8610559It’s shocking when you realize the graduates will enter the job market this year carrying hundreds of thousands of dollars in debt. Obviously, it varies depending on the university and the course but for many, the outlook can seem quite bleak. Students need to be taught how to deal with their loan and stop it from becoming a burden that could hang over them for the rest of their life.

Avoid Borrowing More Than You Need

If you’re in university right now, you should think about how to avoid borrowing more than you need. When you’re in university or college, it’s easy to fall into the trap of thinking everything is being paid for you. It’s not, it’s more like when you have a bar tab on a night out. You’re probably not keeping track of what you owe, but the bartender sure is. You’ll be in for a nasty shock once you decide to head home. The good news is that by living on a budget through college, you can avoid that massive cost. You will be able to shave thousands off how much you owe, reducing the pressure you’ll face to pay it all back.

Take A Job

It’s not a bad idea to take a job on when you’re in college. That doesn’t mean you should have a job during term time. However, rather than wasting your summer, you can get a job when you return home. This won’t do a great deal to lower the debt, but it will again, reduce what you owe. Rather than wasting what you make on your spring and summer vacation, put it into savings. You will then be able to use it to pay off the debt faster once you graduate.

Consider Using REPAYE

Repaye is a new pay as you earn plan, approved and introduced by the US government. It is designed to help those who are already struggling under the weight of their student loan. There is plenty of pay as you earn information available to look at online and it could really help you out a lot. The amount you pay back will be determined by how much you earn. After a certain period, the rest of your debt will be canceled, and you will be completely free of your student loan.

Choose A Payment Plan Carefully

When you finish college either this year or in the years ahead, you will need to choose a payment plan. Choosing the right payment plan can make managing your student loan a lot easier. The biggest question most students have is how much they should aim to pay back each month. A good rule of thumb is to aim to pay your debt with ten percent of your income each month. That should put you in a good position and allow you to pay off the debt quickly before interest can build up on it.

If you take this advice, you will escape the debt of your student loan sooner rather than later. It seems unfair that we have to pay so much just to receive an education. Unfortunately, this is a price we all have to pay.

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