Paying Off Student Loan Debt – Clock Stopped on Your Education

The Student Loan Clock is ticking for many college graduates. It seems like the more they borrow, the further ahead they seem to be going. They are living in hope of one day landing a job with a decent salary that will allow them to start paying back all of their student loans. Unfortunately for many, this dream rarely comes true. As a result, they are usually stuck trying to manage their student loans while barely making enough money to survive each month.

There are some things you can do to make sure that you don’t fall far behind on your student loan debt. The first thing that you need to realize is that there is a certain amount of time after graduation that you cannot legally default on your loan agreement. While most student loan debts are due at the end of a specific six-month grace period, there is an exception for federal loans. For this reason, you do not want to fall too far behind on your payments when this grace period is ending. If possible, try to finish out your loans by then so you have some time to catch up. If not, you will be required to start repayment as soon as your first paycheck goes into default.

Once you have started the repayments on your loan, it does not mean that you cannot pay another bill or loan in a timely manner. It only means that you will have to focus your efforts on increasing your income while repaying your debts. The fastest way to do this is to go back to school and get a better degree. This is especially true if you can finish a degree that may have higher salary potential than the one that you currently have. In the New York Times, it was reported that the median income of someone with a bachelor’s degree was $75k per year while someone with a master’s degree earned almost twice that amount.

After completing your education, you should plan on spending money wisely after graduation. The last thing you want to be doing is racking up student loans that will further put you into debt. One way to do this is to max out all of your credit cards and then roll them into just one loan. You can then use that new loan to pay off all of your other debts leaving you with just one monthly payment. In fact, the best student loans for this purpose are typically the ones that have the lowest interest rates since you will probably not be paying them off in full anyway.

One way to make sure that you are getting the best deal on your student debt is to keep in mind that there is a sugar baby industry that is willing to prey on young adults seeking to get out of their debt. The reason that you want to avoid becoming a sugar baby is because the industry will exploit you by charging you exorbitant fees. It is important that you research the debt settlement companies that are available so that you do not become a victim of this scam. However, you may not know that the companies that are most popular are actually owned by the same company that owns the debt settlement industry. This makes it very difficult to find a reputable company, but if you are patient and if you search hard enough you can succeed in eliminating much of your debt.

One of the first things that you will want to look for when shopping around for a student loan debt consolidation program is to make sure that you read the fine print. The most important factor to consider here is the interest rate that you will be charged on the money that you save through this repayment program. You want to make sure that your interest rate is not much higher than the average interest rate that you are currently paying, otherwise you are simply making a waste of your money. Student debt consolidation programs are not an alternative to bankruptcy, and the fact of the matter is that if you cannot manage to repay your student loans on your own then you should seek professional help immediately.

One of the other ways that you can avoid a student loans clock that is ticking is to remember that it may take several years for you to build up enough of a debt relief savings to pay off all of your other debts. Many students simply do not realize that they have to make a monthly payment while they are in school. They often underestimate the amount of money that they would actually need to pay off their debt while they are still in school. Do not wait until you are in college to start thinking about your financial situation. Save money and pay attention to your budget every month.

The sooner that you get started on your student loan debt clock, the sooner that you will be able to enjoy the freedom and independence that comes with finishing your higher education. Remember that there are many options that you have available to you when it comes to paying off your debt as quickly as possible. However, you have to be smart about it and make sure that you shop around for a reputable company that offers the right student debt consolidation program for you. The more options that you are able to choose from, the better your chances are going to be of successfully paying off your debt in the shortest amount of time possible.