Eliminating your student loan debt; dos and don’ts
Updated on February 10, 2020
Most students take out student loans without fully understanding its impacts on their future careers and financial stability. While a federal student loan may help you survive college, it can take a significant toll on your finances once you are done with school.
Many people end up paying their federal student loans for longer periods due to late repayments and loan forbearance. It’s, thus, vital to begin your repayment plan while you’re still in college to avoid default and penalties.
Here are some dos and don’ts that can help you eliminate your student loans, whether you are still in school or are a graduate.
1. Get a part-time job
If you’re in college, try getting a part-time job to have an extra source of income. The more money you have in your pocket, the fewer loans you have to borrow to cover your school expenses. Additionally, if you’re a graduate, apply for jobs as soon as possible to start receiving checks to pay your student loan.
It’s always better to start paying your loans early instead of waiting for the six months grace period you have.
2. Make your student loans a priority
As a graduate, it’s reasonable to start saving for a car, a house, and retirement. However, if your student loans are unpaid, all your budgeting and saving plans are doomed since your debt can affect your credit score. When you land your entry-level job, you’ll have to make some tough decisions on where to allocate your money to ensure your debt is paid in full.
Make your student loans a priority by sacrificing on something else to make repayments quickly and on time.
1. Apply for forbearance when you don’t need it
Loan forbearance is a great way to postpone your loan payments until a later date when you’re able to make payments. However, if you can make your repayments, don’t apply for forbearance since your interest accrues over time, resulting in you paying more.
2. Live above your means
Many college students splurge on housing, food, clothing, and accessories when in college, resulting in overspending and, ultimately, over-borrowing.
StudentLoanify can help you find suitable student loan repayment options to eliminate your debt. Contact us today for more information on student loans.