The 411 On Student Loans

rp_money-548948_640-300x200-300x200-300x2001-300x200.jpgStudent loans are two words that many adults dread hearing and talking about. To some people, loans might help with financial burden during college years, and to others, it might be way too much money to handle responsibly. Whatever the case may be, student loans have to eventually be paid off, and it’s better to do it sooner than later. Here are a few tips that will help any potential student understand how student loans work and or need of advice.

1. Don’t take out more student loans than necessary. I have met many people who take out more student loans than they should for reasons such as: paying for vacations, nicer cars, etc. I also know of people who take out student loans in order to take more credits each semester, and thereby working less at a job so they can finish school quicker. I would say the latter is a better decision IF you are wanting to graduate quicker, but keep in mind that these loans will in fact stack up and build interest over the years.

2. Total up how much your tuition and books will be and ONLY take out that much in student loans. I did this every single semester of college and my student loans are considerably less than the average college student. It lead to working more and buckling down with a budget, but now I’m not stuck with a huge financial burden and I can go to sleep more at peace.

3. Come up with a pay off plan sooner than later. Figure out how exactly you will be paying off these loans. Maybe you will decide to work more so you can pay off your student loans quicker. Or how about starting a saving money challenge or refraining from stopping at for a coffee every morning challenge. These challenges will save you a lot more money than you would think and you can instead put all of this money towards something that will ease stress with your student loans.

Related: Top ways grads can save money

4. If you can, live with your parents as long as you can and all of the money you would be putting towards rent, put towards your student loans. A lot of people frown upon living with their parents, but this in fact can save you hundreds of dollars each month. I’m not saying to heavily rely on your parents, but if they are offering free room and board, take advantage of it.

5. Stay positive and realize that it will eventually be paid off one day with your hard work. Stick with your plan, ask for help when you need it, and  don’t beat yourself up too much. The majority of us have to deal with student loans, the trick is dealing with them correctly and responsibly.

What is your plan for paying off your student loans? If you already paid off your student loans, what tips do you have for others?

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Comments

  1. Point #4 about living with your parents can save people $10,000+ in rent. I graduated college last year and save around $1,000 a month by just living at home. Eventually I’ll move out, but it’s a no-brainer at this point. Sweet write up!

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