Tips to Keep Student Debt Low
For many people, student debt is a debt that cannot be avoided. However, there are ways to keep it to a minimum. There are tips and tricks you can and should take advantage up to reduce the burden of student debt.
These steps should be taken at the beginning of your student career to optimize them but even if you already have a lot of student debt, there are actions you can take.
Use these tips and tricks to get you started:
- Look into scholarships and grants. These are basically ways to get free money for education. The more of these that you can get, the less you will have to repay after you graduate.
- Look into special loans. You can find loans that have lower interest rates if you simply look for them. Do not just apply for loans from a government agency without looking into other options.
- Be smart. When looking for student loans, be sure to ask the right questions. Some of these questions include asking if you can pay them off early without a penalty.
- Work with your school. If possible, consider working through college so you can pay your tuition outright. You do not even have to have a full-time job. It can be a part time job and just make sure that most of the money you earn is put towards our tuition. Save up for the first semester and while you are taking classes, work for the tuition you will have to pay for the second semester. Even if you cannot pay for all of the fees, you can pay for the majority of them and basically pay as you go with little debt.
- Start early. Begin paying your student loans off earlier than required. Doing this will reduce the amount of interest that accumulates after graduation. Also, there is no interest while you are in school so be sure to take advantage of that.
- Tackle the interest. While paying the loans back, if you took out more than one, make sure you pay off the one with the biggest interest rate first.
- Go big. Whenever possible, make bigger payments on your student loans whenever possible. This will reduce the premium and ultimately, the amount of interest you are charged over the life of the loan. Consider taking your tax refund each year and simply putting it towards your loan repayment. This could easily help you repay your loan in just a few years.
- Live within your means. By creating a budget and sticking to it, you can allow yourself the opportunity to pay off a little bit more each month than the minimum. Even an extra $100 can make a big difference.
Contact Clark & Washington for help controlling your student debt.
