Four Ways to Evade Student Debt Blues
Managing your financial aid responsibilities is one of the most difficult things to do as a student. College is a huge investment—which often requires students to take out loans. This investment takes careful research and planning to ensure that you’re on the right track for loan repayment. Read the following tips to help reduce your debt woes:
1) Know your debt: It might sound obvious, but a lot of students do not know how much they owe to their creditors. Being highly disorganized, they fail to make an effective strategy to pay back the loan. Instead, create a list to track your debt repayment obligations. In doing this, your primary task is to list your debts in order (if you have multiple student debts). If you have a single student loan, then verify the outstanding balance. Understand how much you owe and make plans accordingly.
2) Budget your way out of debt: Student debt cannot be discharged in bankruptcy or any other debt relief process. Therefore, you would have to get wise with your finances to eliminate your student debt. The best way to do it is to start a budget. List your total monthly income and expenses and design a budget according to your needs. This will help you to spend according to your means.
3) A new repayment plan: Though debt relief programs are not applicable in case of student loans, some creditors may allow graduates a restructured payment plan. If your financial state is critical, then contact the creditors with proper documents (like your income proof, recent billing statements etc.). You should also understand that you can push back your payments if you fail to find a job after the completion of your studies. However, you can delay the payments only if you are facing economic trouble.
4) Assistance for debt-stricken students: If you are feeling hopeless with your student debt then you might consider joining AmeriCorps or Teach for America. Your loan can be partially or even completely forgiven (depending on the situation) if you are a part of these programs.
If you need to take a loan to finance your studies then consider a Stafford loan, a form of Federal Financial Aid to help an undergraduate or graduate student pay for their education. These are low interest loans for part time and full time students. It is possible to borrow up to your full tuition fees with Stafford loans.
Student loans can be a menace if you default on them. Therefore, you should ensure that you are obtaining a degree from an accredited college or university that has a good career placement services; and analyzing the job outcomes in your degree program of choice. If you are already in student debt, then follow the above tips to help manage and understand your student loans.
About the Author: This article has been contributed by Amy Lewis. She has been associated with various number of financial communities like Liberty Fiduciary Services, Oak View Law Group, Karlin Daniel & Associates and many more. She has majored in media and communication and is very active in writing, sports and also works for various social service companies.