“The borrower is a servant to its lender” – Dave Ramsey
Today a lot of college students take out loans to pay for their college, but for most it is hard to pay them off afterwards. According to the U.S. student loans statistics, Americans owe nearly $1.3 trillion in student loan debt; in fact, the average class of 2016 graduate has $37,172 in student loan debt, a statistic that is up six percent from last year. This is a problem that is getting worse each year, and if students knew how to budget, manage and spend their money wisely we would not have this problem. Here are some tips, and steps you should take, to pay off your student loans.
First thing, do not go any further into debt. Try your very best to pay with cash for the remaining of the education. If it is possible, no more borrowing. You cannot get out of a whole while digging out the bottom.
If you really want to get rid of your student loans, you are going to have to sacrifice something or a couple of things until the loans are payed for. Maybe it’s not going out to eat as much, or not going to the movies, whatever you spend your money on that is not necessary, will have to be let go. At least until you pay for your student loans. You should make paying those loans one of your priorities.
Budget your money. Make sure you know where your money is going. Cut down on expenses.
We all know that the more you wait to pay your student loans the more you will have to pay later on, and those minimum payments are not helping. Try to make more than your minimum payments. Once you have lowered your expenses. you should have more money left over. All that money you have left over, or at least most of it, should go to paying those student loans. Keep doing this until you have paid off your loans
Paying your students loans is very important. Not paying you student loans can damage your credit score. This can keep you from buying a house, or an apartment in the future. Also, if you don’t pay your student loans, the government is allowed to take up to 15% of your paycheck every month to pay for your loans. You could also be sued for the full amount if you do not pay so even if you default, the government or private companies will get their money.
This might sound harsh, but in the long run it has many benefits. Remember, the sooner you pay your loans, the less money you have to pay. If you wait interest will build up.
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For more information on student loans or help visit:
https://studentaid.ed.gov/sa/repay-loans/default
https://studentaid.ed.gov/sa/sites/default/files/your-federal-student-loans.pdf
