Graduating from college is one of the biggest accomplishments many people ever experience.
It takes years of hard work and dedication to be able to walk across the stage and get that diploma. For many people, it also means they’re stepping off campus for the last time with a huge load of debt on their shoulders.
This is a distracting annoyance when you’re about to start your first full-time job and you’ve got to deal with all the responsibilities that come with that.
Paying off college debt is something many students worry about before and after they graduate. After making so little money for so long at part-time jobs and internships, it’s hard to wrap your mind around how you’re going to be able to pay off the debt you collected during your time in school.
The good news is that paying off your college loans isn’t an impossible thing to do. Check out some tips that will help ease your mind and give you some financial guidance.
1. Always pay more than the minimum payment
Like credit card, paying off student loans happens on a monthly basis. You can always make additional payments, but there is one required monthly payment you’re supposed to match at least once a month. That number changes for everyone depending on how much debt you have, but the secret no one talks about is that it’s actually better if you pay more than the minimum requirement.
If you miss a payment, you’ll acquire more interest as a financial slap on the wrist. It’s to encourage people to not miss the payments they need to make. By paying over that minimum — even if it means adding only an extra five or ten dollars — you’ll ensure that no extra interest will be added. Plus, you’ll get that much closer to paying it all off, which will give you some peace of mind.
2. Schedule your final payment
One of the most annoying and discouraging parts about student debt isn’t always the massive number you have hanging over your head, but rather the unknown amount of time you’ll have to spend worrying about it. Some people pay off their debt in just a few years while others spend their whole lives chipping away at it little by little.
Use a student loan calculator to find out when you’ll pay off your debt. Having that time period turned into a solid number will provide some hope and renewed resolve.
3. Look into refinancing
Interest rates run high on student loans — and because tuition costs increase about eight percent each year, you’ll accrue more debt the longer you’re in school. This means those interest rates you’ll deal with after graduation will apply to more debt than you expected when you first started school. When it comes to interest, there are ways to lower rates and make them more manageable.
Refinancing your loans is one of these options. Take a second to look into common refinancing questions to get all the answers you need. It’s not always right for everyone, but if you find it’s something you can do, it’ll help reduce how much you pay overall and relieve your monthly stress.
4. Get a debt-forgiving job
Depending on the kinds of loans you took out and which state you live in, you could potentially get a job that counts as debt forgiveness. Check out some jobs that will pay off your debt and the pros and cons that go with them. An easy pro is that working a particular job forgives a certain amount of your debt, but a con could be that those jobs have the debt forgiveness incentive because no one wants to work them. Consider all your options and decide what matters most to you.
5. Use your raises
For some, student debt takes years to work off, which doesn’t have to be as bad as it sounds. Having that extra time means more opportunities to get some unexpected cash. Winning money on a lottery ticket would be great, but it’s not something you can count on. Raises, however, are a different story.
Apply any future raises to your student debt even if it’s just a portion of it. It’ll give you an extra boost to reach that final payment a little bit faster.
6. Cut down your budget
Even if you’ve already tried it, look at your daily budget again and see if there’s anything you can cut back on. Dine in whenever possible instead of going out. Skip that urge to treat yourself to a shopping trip or extra expense. It may seem like only a little money now, but if you always put that money towards your debt, it’ll add up in your favor.
Try not to worry too much about paying off your student debt. There are easy ways to tackle it and make that debt shrink over time.
You can still have a good life while working on paying off loans, so just take it one day at a time. Eventually, you will be free of college debt and then you’ll never have to worry about it again.
