The feeling when you finally graduate from college is very freeing. You have put in a lot of years of hard work in order to get a job in the field that you love, and it is now time to embark on the next adventure in your life. However, that feeling can be quickly taken away because of looming student loan debt. College is expensive, and most students have to get loans in order to pay for their tuition. After college is over, it is time to start thinking about paying off those loans. Although it can be very overwhelming to pay off student debt right out of college when you are trying to find the right job, it is important to start as early as possible. This way your loans will be paid off faster. Below is a list of five helpful tips to make paying off your student loans a little bit easier.
1.) Get A Part-Time Job
Although this may seem like a huge task to take on, getting a part-time job will help you earn extra income that can go straight toward your student loan debt. You can get jobs where you create your own schedule, like freelance work, or work as a tutor. You should find a job that is worth your time, and that makes enough money to put a dent into that student loan debt. You can put all of this extra income into paying off your student debt, and then your regular job’s salary will not have to suffer because most of it is going to the debt.
2.) Make A Budget
Landing your first high paying job right out of college can be very exciting. Many people do not know what to do with all of the money that they are now making because they have never had a salary that large before. It is important not to blow all of this money on senseless items. Make yourself a monthly budget and put a portion of your new large paycheck towards student loan debt. It is much easier to cut back on items that you do not need and pay off student loan debt than having to worry about not being able to make the payment because you bought a new item that will not allow you to pay your debt off.
3.) Stay In Touch With Your Lender
If you move after college, let your lender know all of your forwarding information. If they cannot contact you with an important bit of student loan information, you could miss a payment without even realizing it and that could cost you. Make sure to open every piece of mail that is sent to you from your lender because the information inside could be crucial. If you have any questions or concerns, call your lender and ask. It is their job to help you through this process.
4.) Understand Your Grace Period
There are many different types of student loans, and each one has a different grace period than the other. A grace period is the amount of time you have after college until you have to start paying those loans. You should be familiar with your specific grace period so you can start saving money for when the first payment comes along, and so you do not miss your very first payment.
5.) Pay Off Your Expensive Loans First
You should put all of your loans in front of you and see which ones are the most expensive and have the highest interest rate, and then put a plan in place to pay these off first. If you have private loans in addition to federal student loans, you should pay the private ones off first because they usually have a higher interest rate than the others. Make sure a majority of your repayment goes to these bills, and then you can start making larger payments on other loans.