Pursuing your dreams and furthering your career goals requires a lot of passion and a sense of financial responsibility. Often people get opt for student loans to be able to acquire a decent degree and then go on to secure a profitable job in the market to be in a position to pay off their student loans. Sometimes student loans are a thing which has no escape and is often an inevitable burden that all students carry throughout college.
However, to look on the brighter side of things, student loans are like a blessing in disguise which enables a student in a financial crisis to get the degree of their choice. However, before undertaking this risk one should definitely know what they are signing up for and before even taking up this liability, they should weigh their repayment options. Having an assurance of the future beforehand will make sure your experience of borrowing is not a very unpleasant one. Just like you work smartly to achieve good grades similarly you need to learn to tackle student loans the same way.
1. Make frugal living your best friend
Assess your situation and then act accordingly. Just because you have graduated and are no longer a ‘college student’ doesn’t mean that you leave your frugal ways of your college life. Always keep in mind the endless hours you dedicated to your studies, managing your part time job in the hopes of making a few extra dollars just so that you could afford a decent lifestyle. Do not procrastinate and delay your debt payments and make it a point to start paying off your loans as they are incurred or when their due date arrives. It is likely that you lived within your means when in college so continue to do so.
This could be in the form of:
- Saving smartly while in college by sacrificing some of your social outings to save a few bucks for a rainy day.
- Cutting down commuting costs by planning carpools and other environmental friendly ways to travel.
- Affordable rent spaces can save you a lot of dollars in the long run.
2. Dig into the details of your student loans
Ignorance is bliss, but not always. Not being aware of what you are dealing with can land you in a lot of trouble as you may be unable to keep track of your payments. It’s very likely that you evade your payments and just make way by making the minimum possible payments.
3. Track down your liabilities
Not remembering how many creditors you owe money to? Sounds bizarre? Yes! This is a likely possibility that you haven’t kept track of your loans and you are there with a question mark on your face regarding your loan payments after graduation. Since you cannot rectify your careless habits as an 18-year old, you need to take some ardent steps to nullify them. For starters you can check out federal student loan types and their repayment options.
4. Get to know about the loan’s details
Being under the clutches of student loans, you might be liable to tackle and pay off multiple loans. Here you need to prioritize which loan payments are more urgent as they might be incurring a lot of unnecessary dues on your account due to high interest rates. You could even explore options of loan deferment, forgiveness, loan consolidation plan or a better payment plan.
5. Take advantage of being employed
When you have a proper repayment plan in place you are more likely to get the debt burden off your shoulders. For example if you know that your monthly income will be deducted with the amount of the loan installment every month you will know how much you will have in hand. This way you will not become too relaxed and keep delaying your payments. If you are already at a job negotiate with your employer for a compensation package and if you are a recent grad looking for a job you can bring it up in the interview only. You can preferably sign a contract which commits you to the company for a certain time period and maybe a lower salary but at least it will help you eliminate student debt and ultimately get rid of the stress related to it.