It's inevitable.
Student Debt.
With college tuition costs rising steadily every year, more than 70% of graduates are leaving school with about $30,000 in debt or more! Like most loans, they may be referred until after graduation. But then what?? Here are a few ways to tackle that student debt and shorten the race to financial freedom
1. Tackle Your Debt
Seems repetitive, but here its more about understanding how much debt you really have. Most debts come from private loans, but don't forget about those federal subsidized and unsubsidized loans. Make sure to have a clear note of how much you owe. In reaching that clarity, make sure you read the fine print of your loan terms and repayment guidelines. Remember interest also has to be paid back and familiarize yourself with when your repayments are due and how much is due.
2. Sacrifice
Being a student at High Point University has put me in the life of luxury and has left me a little detached from the real world. Loan repayment is a huge wake-up call. Paying back your loans is a big responsibility and that requires sacrifice. Such things as staying home to save on rent, delaying in buying a new car, or even going out less can be simple sacrifices that can save you money to use toward paying off debt. Even some of the money you receive from graduation, birthdays, and holidays can be set aside for those loans.
3. Pay More
As simple as it may seem, paying more on your loans every chance you get can cut down the time it takes you to pay them back. This sort of goes hand in hand with sacrificing. If you're committed to being debt free, paying more than the minimum payment not only cuts your interest down but the repayment period of the loan.
Student loan debt is a serious responsibility to have on one's shoulders fresh out of undergrad while yearning to take on the real world. It is manageable and possible to overcome it. These ways are just a few of the strategies you can implement to come closer to financial freedom, Be sure to also check my previous post on financial strategies to establish in your twenties for more information on establishing a solid financial foundation.
Tesia, I agree with your tips on tackling student debt. While we are currently enjoying the luxury life at HPU, we must keep in mind that it all comes at a price; and in this case, a BIG one. Not only do we have to worry about paying back our student debts but taking on the numerous expenses (phone bill, car insurance, etc.) that most of our parents have fortunately been paying for up to this point. I agree with your statements about making sacrifices to save money. I am definitely planning on moving back home after graduation, at least for a year or so until I can claim myself as financially stable and I am confident being independent from my parents. Your blog has great advice on life after graduation and I look forward to reading your future posts!!
ReplyDeleteWhitney, HPU has certainly sheltered us a bit from the real world, but knowing that sacrifices will have to be made not only in living on your own but in tackling your debt is great mindset to have before graduating. Glad you enjoyed this post!
DeleteBeing a senior graduating in May, I try my hardest not to think about student debt, but I know that I can not escape it. Being a High Point University, we are very fortunate and being thrown into the real world with a lot of student debt is going to be a huge wake up call. I always pray that my education pays off in the long run.
ReplyDeleteMiranda, I believe it will. We just have to remember that we are here on on borrowed time and money. These strategies should help your financial life in total no matter how much money you make after graduation.
DeleteTesia, your posts are just spot on every week. Even though I'm a junior and still have a little ways to go before I start having to pay back my debt, it's great to have some ideas on ways to go about tackling the debt monster to make it less of a scary thing. Love the article!
ReplyDeleteThank you Erika! I'm glad you enjoy them. And there is no harm in starting early. It's actually better to have a strategy on hand being that senior year goes by fast and it gets super busy with job and graduate school applications.
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