3 top tactics for managing student loan debt after graduation
Updated on April 1, 2020
Graduating from college is a fun-filled time to share with family members and friends. But, it can be hard to celebrate your success when you have a hefty federal student loan attached to your degree or diploma. Unfortunately, this is the reality for many graduates in the US who end up in default.
Additionally, some graduates find themselves with other types of debt including;
• Credit cards
• Mortgage
• Personal loans
• Car loans
This makes it more challenging to balance your debt with your living expenses, especially if you’re unemployed or your career isn’t paying much. Here are some ways you can manage your student loan debt as a graduate.
1. Decide which loans to pay first
If you have other loans apart from your federal student loan, it’s vital to select one to pay off first. This way, you are not stretching out your income too thin by trying to make several payments each month. For instance, you can pick the loan with the highest-rate debt first and move on to the other loans with time.
2. Live like a college kid
Once you graduate, some aspects of your college life are worth keeping, especially if they save you money. For example, rent a place with two other roommates to split expenses like food and utility bills. You can also live at home to avoid paying any living expenses, thus, freeing up more of your income to pay off your student loans.
3. Make a plan to pay off your student loans
Student loan repayment requires discipline and sacrifices if you want to avoid default. First, start by writing down your repayment goals as this makes you accountable. Second, use your grace period to begin making payments. This a great way to develop a habit of setting aside funds for your student loan debt.
Third, try and get a job and a side hustle as soon as you graduate to have an extra source of income to pay down your debt. Lastly, ensure you research the various student repayment options available to find what suits your finances best.
Hire us
At StudentLoanify, we can help you manage your student loan debt to avoid default. Contact us today for more information about student loans.