Student debt is a problem, with the average debt per student exceeding $37,000. In fact, a Forbes report shows that the total U.S. student loan debt is approximately $1.3 million. If your goal is to earn a degree, you probably think you need to get a loan to earn that piece of paper.
Loans are not a necessity to go to college. If you choose a cheaper school, you could actually get by on internships and work-study programs to cover the bill. Be sure to look into grants and scholarships as well. There are a plethora of options to consider. Some colleges do have installment plans to help you pay for your college without the need for a loan.
Keep The Debt Under Control
If you have no other options and student loans are your only recourse to go to school, consider taking out only the minimum. You’ll have a lot of expenses to contend with, but each dollar you borrow now will need to repay in the future. Limit the debt to the salary you’ll make in the first year of your employment.
Learn What Options You Have
You have all kinds of student loan options to apply for – private and federal loans also have their options to consider. When you review federal loans, you’ll see there are subsidized and unsubsidized loans to apply for. Federal loans tend to have better loan terms. However, if you don’t qualify, you may have to look at several loan sources. Be aware that each loan comes with its own terms.
Go Ahead and Start Paying Your Loans Back
The majority of student loans give you the option of waiting to repay your loans until you graduate. Don’t do this. If you can repay, go ahead and do it. Be aware that additional debt is accrued from the interest. A $100 extra a month could go a long way in the grand scheme of things.
Look At Repayment Options
When you’re talking about repayment terms, you have an array of choices to go with. Some federal loan programs provide loan forgiveness after so many payments. There is also the public service loan forgiveness program. You also have the option to use the income-driven repayment plans. Each of these plans can help you address your monthly payments to ensure they are more manageable.
It’s not fun carrying student loan debt, and it will take years to pay off if you take too much out. However, with some proactive thinking, you can ensure your financial future isn’t ruined upon your graduation.