Easy Guide to Paying Off Student Loans: 7 Tips

Student Debt

Easy Guide to Paying Off Student Loans: 7 Tips 

At present, debt is a common problem for almost everyone. People are looking for ways to get an answer to the most frequently asked question “how to pay off bills?”. A recent survey conducted by the National Center for Education Statistics demonstrates that 50% of existing college graduates carry student loans and the average amount of student loan debt is $10,000. The average cost of college education rises at two times the inflation rate, which is really a matter of concern.

With the hike in college education expenses, it is tough for college aspirants to obtain sufficient grants and financial aids to pay for college education and essential requirements. As a result of this, they resort to student loans available from different sources. They even need to use their credit cards for buying school supplies and books. As per data provided by the United College Marketing Service (UCMS), every student carries 2.8 credit cards on an average. Since they don’t have income to pay off their loans, they often pile up a big amount of debt. Following are seven useful techniques to pay off student loans:

1) Develop a strategy

In strategizing how to pay off bills, it is important to pay off your student loans prior to completing graduation.

2) Try to save money

Every summer during your college session, look for a job or placement. Save 50% of the money earned in a savings account offering a high interest rate like Ing.com or Emigrantdirect.com. After one or two months, discuss with a financial consultant to get the maximum possible return on your money. Once you complete graduation, you can utilize this fund to pay off your student loans.

3) Consolidate your student loans

You can use consolidation to pay down your student loans. However, you should be careful. You can consolidate your student loans into one convenient monthly payment but you might not always end up getting an affordable interest rate. You must do thorough research prior to consolidating your student loans. You might not qualify for different student loan forgiveness programs if you go for consolidation.

4) Swap job to lower debt

You can do unpaid jobs or work in the following areas in return for lowering your student loan debts:

  • Working for PeaceCorps or Americorps
  • Teaching in particular areas with students with low income or areas with dearth of teachers
  • Offering medico-legal services in low income neighborhoods

5) Find a work-study job

To pay off the costs of your college education, you must look for a work-study job through campus. Visit the campus employee office to inquire about their work-study plan. These jobs pay you the minimum wage for that state.

6) Request for financial aids/scholarships

Most recently, there have been cutbacks in the budget for financial aids so it’s quite difficult to receive a scholarship to attend college. You can enhance your probabilities of obtaining a scholarship by filling out as many applications as possible. If you fill out minimum 50 applications, you have the chance of getting 5 scholarships as a minimum. You can also visit your campus scholarship office and make queries about financial aids available for students. Be amicable towards the scholarship office staffs who would let you know about any scholarship programs as soon as they become available. You can look for scholarships online as well.

7) Request for grants

Request for as many grants as you can. You can also send applications for federal grants like the Federal Supplemental Educational Opportunity Grant Program (FSEOG), the Federal Pell Grant, National Science Scholars Program and Leveraging Educational Assistance Partnership or LEAP.

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