Can you avoid debt from student loans? Can you go through your college education without getting into debts?
Attaining a college degree is a requirement for getting a good job, but many students cannot afford to pay the expensive college fees, even with parental support.
Banks and financial systems have set up convenient loans for students, but the trouble begins when it is time to pay them back with added interest.
Right from the moment you apply for a loan to when you get your first job after graduation, taking your loans seriously is very important.
Not racking up debt means you will have a less stressful time after college and a better credit record for further on in life. Follow these tips to avoid becoming a nerve-wracked debtor.
5 Top Tips On How To Avoid Debt From Your Student Loans
1. Research Student Loan Options
This may seem like an obvious step, but students will always be lazy with ‘doing their homework’. Sometimes they choose a less favorable loan without giving due thought to their future. Federal loans are usually more flexible than private ones when it comes to repayment, even if the initial paperwork seems like a lot.
Look at repayment and deferment options. Delaying a loan may spread it out, but will also accumulate more interest, so it is best to plan ahead before picking a loan package.
2. Be Responsible And Organized
Keep all your loan documents in a safe place and keep abreast with any developments. Use the federal loan tracker to manage your various loans, or devise your own organizational system to have your balance and credits easily accessible when you need them.
3. Plan Your Payment Time
Standard federal loans have a 10-year repayment program – it would do well if you start planning how to repay it well in time because of the tricky economy. Good planning and organization will help you pay your first payment in time once your grace period ends – missing that crucial payment is a mistake many lazy students suffer for!
4. Stick To A Budget
Even when you leave college and get your first job, pretend you are still a college student living off meagre finances. This will help save more money for your repayments and restrict unchecked spending. Draw out a monthly budget plan for yourself and see that you stick with it by recording your expenditures.
5. Remove Expensive Student Loans First
Always pay off loans with a higher interest rate first so you don’t keep on accumulating crazy debts. Being responsible and paying on time will build a good impression that can help waive off or reduce loans. Avail loan consolidation to pay back with less interest rate.
Programs that accept community service or military time instead of payment may be suited to some students and should be looked into.
This is a guest post by Brendan Egan
Brendan Egan is an expert on financial dealing and spending wisely. He writes often on credit card issues, being economical and productive, and how to solve money-related problems.