Millions of Americans are saddled with thousands or tens of thousands of
dollars in student loan debt. In fact, student loan debt has become a
national crisis, with $1.2 trillion worth of outstanding debt in the United
States. Approximately 70 percent of bachelor’s degree recipients
graduate with massive amounts of debt, all at a young age and often without
lucrative jobs. As college costs and living expenses continue to rise,
and well-paying jobs become increasingly more difficult for recent graduates
to find, America’s student loan debt grows by an estimated $2,726
For many college graduates, this debt can be overwhelming. While it may
seem impossible to pay off school loans, there is hope to regain financial
freedom once again. Consider this list of tips gathered from people who
have conquered tens of thousands of dollars of debt in just a few years:
- Don’t ignore your debt. It seems obvious, but ignoring your debt
won’t make it go away. Meet it head on and create a plan that you
can stick to.
Know your repayment guidelines. It is important to read the fine print
on your loan documents
before you sign them. You need to know how much your minimum payment is, when
it will be due, and how much you plan to repay each month.
- Be prepared to sacrifice. Repaying your loans may mean that you will have
to live below your means for a while. Try to eliminate or limit certain
luxuries and focus on the necessities.
- Make more than the minimum payments. The longer it takes you to pay off
your loans, the more money you will end up having to pay in interest.
Making more than the minimum amount each month will make your balance
go down faster, and save you money in the long run.
- Start paying immediately after graduation. If possible, start making payments
as soon as possible, even before the six-month post-graduation grace period
ends. This will get you into a routine and you will pay less interest.
- Pay more than once a month. The more you pay, the less you will owe in
interest. Whenever you have leftover money, consider making another payment
on your loans.
- Create a budget. Be aware of how you spend your money and set limits for
yourself. Pay for everything with cash and avoid credit cards at all costs.
Accruing new debt – and new interest – should be avoided.
- Pay off your highest-interest-rate loans first. You pay the most in interest
on these loans, so your first priority should be to eliminate these first.
If you are struggling with unmanageable student loan debt, you are not
alone. We invite you to speak with a Los Angeles bankruptcy lawyer at
Wadhwani & Shanfeld to talk about your options. When you choose to
work with our firm, our attorneys can create a strategy best suited to
your individual needs so that you can enjoy financial freedom once again.
Contact us today to learn more about how we can help.
FREE consultation, please call (800) 996-9932.