A recent study from the National Center for Education Statistics shows that 50% of recent college graduates have student loans, with an average student loan debt of $ 10,000. The average cost of college increases twice the rate of inflation. With rising college costs, it is difficult for aspiring college students to get enough scholarships and grants to pay for college and basic needs. More and more college students are being forced to use credit cards to pay for basic items like books and school supplies. According to United Marketing Service (UCMS), the average number of credit cards per student is 2.8.
Here are 8 ways to help pay off student loan debt:
1. Develop a plan. Develop a plan to pay off your student loan debt before you graduate.
2. Save your money. Every summer during your college education, get a job or an internship. Save half the money in a high-interest savings account like http://www.emigrantdirect.com (5.05%) or http://www.ing.com (4.5%). After a few months, consult a financial advisor to get the best possible return on your money. After college, you can use the money saved over the 4 years to pay off your college debt.
3. Be careful with consolidation. Student loan consolidation combines your loans into one payment, but it may or may not provide you with a lower interest rate. Do extensive research before consolidating your student loans. Also, you may not be eligible for various student loan forgiveness programs if you consolidate your student loans.
4. Trade jobs to reduce debt. Volunteer work or work for the following in exchange for reducing student loan debt: teaching in certain locations with low-income students or areas with teacher shortages, providing legal and medical services in low-income areas, or working for Americorps or the Peace Corps.
5. Get a work study job. To help pay for college costs, get a work-study job on campus to help defray the cost of college. Go to your campus employee office to inquire about their work-study schedule. Work Study Jobs pay at least that state minimum wage.
6. Apply for many scholarships. In recent years, the budget money for college scholarships has been reduced, making it more difficult to get a scholarship to go to college. You can increase your changes to get a scholarship by completing as many scholarship applications as you can. If you complete at least 50, you should receive at least 5 scholarships. Also, go to your campus financial aid office and ask about the financial aid programs that schools offer to students. Befriend the staff at the financial aid office, who will alert you to financial aid programs when they become available. You can also search for scholarships on the Internet. Some scholarship websites are http://www.fastweb.com, http://www.scholarships.com, http://www.finaid.org, [http://www.college-scholarships.com] or http://www.scholarshiphelp.org.
7. Apply for grants. Apply for as many grants and scholarships as possible. You can also apply for federal grants such as the Federal Pell Grant (Pell Grant), the Federal Supplemental Grant Program for Educational Opportunity (FSEOG), the Association for Achievement Educational Aid (LEAP), and the National Science Grant Program. Some grant websites are http://www.scholarships-ar-us.org/grants/, http://www.scholarships-ar-us.org/grants/women.htm, http: //www.careersandcolleges .com .
8. Protect your credit. Try to avoid late payments on your student loans, if you do, this will be reported on your credit report and can last up to seven years. If you are having financial difficulties, call the student loan company and inform them of your situation, request a hardship or loan deferral to make sure your credit is not damaged until you can start making payments again.