A recent study by the National Center for Education Statistics shows that half of recent college graduates have student loans, with an average debt of $10,000. College costs rise at twice the rate of inflation on average. With college costs going up, it's hard for people who want to go to college to get enough scholarships and grants to pay for college and basic needs. More and more college students have to use credit cards to buy things like books and school supplies, which are basic necessities. The United Marketing Service (UCMS) says that, on average, each student has 2.8 credit cards.
Here are eight things you can do to help pay off your student loan debt:
Develop a plan. Make a plan for how you will pay back your student loans before you graduate.
Don't spend any money. Get a job or internship every summer while you're in college. Save half of the money in a high-interest savings account, such as http://www.emigrantdirect.com (5.05 percent ). After a few months, talk to a financial advisor about how to make the most money possible. You can pay off your college debt with the money you saved during all 4 years.
Be careful when you combine things. When you consolidate your student loans, you put all of them into one payment. You may or may not get a lower interest rate. Before you consolidate your student loans, you should do a lot of research. Also, if you consolidate your student loans, you might not be eligible for some programmes that forgive student loans.
Trade work to pay off debt. Do volunteer work or work for Americorps or the Peace Corps to get your student loan debt reduced. You could also teach in places with low-income students or where there aren't enough teachers, or provide legal or medical services in low-income areas.
Get a job with work-study. Get a work-study job on campus to help pay for college. Go to the employee office on your campus to find out about the work-study programme. Work-study jobs pay at least that state's minimum wage.
Apply for as many scholarships as you can. In recent years, the budget for college scholarships has been cut, making it harder to get one and go to college for free. Fill out as many scholarship applications as you can to increase your chances of getting one. You should get at least 5 scholarships if you finish at least 50. Also, go to the financial aid office on your campus and ask about the programmes the school has to help students get money. Make friends with the people who work in the financial aid office. They will let you know when there are new financial aid programmes. You can also look for scholarships on the web. Some websites that can help you find scholarships are www.scholarships.com and www.scholarshiphelp.org.
Try to get grants. Apply for as many scholarships and grants as you can. You can also apply for federal grants like the Federal Pell Grant (Pell Grant), the Federal Supplemental Educational Opportunity Grant (FSEOG) Program, the Leveraging Educational Assistance Partnership (LEAP), and the National Science Scholars Program.
Keep an eye on your credit. Try not to pay your student loans late, because if you do, it will show up on your credit report and stay there for up to seven years. If you are having trouble paying your student loans, call the company and let them know. Ask for a hardship or loan deferment so that your credit doesn't get hurt until you can start paying again.