Is it so that you got out of your college a few months back with big dreams and a big sum of dollars due? You had been a good student and you participated in the debate club which you thought will equip you with an edge to get kicking in your post-grad life. But the things did not go as planned. You had a hard time finding a job and you ended up earning $12 per hour, which as per your employer, was a good rate. If this defines your life you should not worry too much. This is how it is with many students leaving college. Now the thing to worry about is your huge sum of student loan. If you think you will not be able to pay it for a decade of your future life, this is not the case. Making a few adjustments in your current life will help you get over the loan amount. Besides, meanwhile, you will, most probably, land at a good job as well. Student loan is a big problem in the modern world. In the US alone, student loans climbed to 1.5 trillion in 2018.
Student loans have haunted many people for two to three decades of their lives. Some even struggle with student loans until their retirement. This should not happen to you because debt is a hurdle that will always haunt you in the way of your progress. It will require some serious self-discipline and tough practices but you will get out of your student debt in three to four years.
Don’t hit the bar every weekend even any weekend:
Well, you have officially graduated and entered in your adult life but you do not need to follow the lifestyle of a careless adult. You would love partying with your co-workers and friends but to tear that debt trap keep going with that broke college student life. You have no idea how much money you can save by avoiding the parties with your friends only.
Have a shared Living Space:
You may have enough money to rent accommodation for yourself and pay for the utilities and other expenses. But hold on right there! Get shared accommodation. Preferably, get an inexpensive shared room. Even if this is not possible, shift in your parents’ basement and avoid the rent altogether. Get desperate to pay off that stupid amount that is making you insecure about your life. You can live like this for some time to save decades of your life paying loan installments every month. This tip alone will save you a few hundred dollars a month. It is a good start, isn’t it?
The Snow-ball Method for Loan Payment:
Follow the snowball method for your loan repayment. It is effective and it leaves you with less number of loans to carry out with. The snowball method goes around like this:
You make a list of your student loans in an ascending. Starting with the smallest loan figures order down to the largest sum of money you owe.
Start by paying the small loans first. As you are trying every way out to save money as well you will soon help yourself to get out of the small loans totally. Meanwhile, keep paying only minimum payments of the bigger loans.
In a short time, you will overcome small loans and you will have fewer loans to deal with.
Another benefit of the snowball method would be that you will not have to pay additional interest payments on many loans.
Follow a minimalist life-style for some time:
It may sound crazy but you have to get crazy to red rid of that huge sum in the minimum possible time period. Try to follow a minimalistic lifestyle for debt-ridden period of your life. If you have a car, sell it you can buy a new one later, use public transport, start eating at home etc. You may have to learn how to cook but that is great. It is a life skill to help you in all the phases of life.
Start Earlier and Ask for Help:
The ideal situation is to start your loan payment while you are in college. This will help you in many ways. You will not be paying rent and utilities, most probably. You do not have adult life responsibilities during your college life.
Ask your professors for help. Ask them to write a job recommendation letter for you. Ask your friends to make a team to come up with an idea to make money. You will have favors of many people in college which will be really hard in post-college life.
Freelance if you can
You can find 2-3 hours a day with your job to get into freelancing and earn some extra money. If you have got some fine skill you can earn a good sum of money through freelancing. You can freelance while you are at your college and that will be an ideal situation. You can either start paying your loan right away or save the whole sum and make a big first installment.
Student loans have become a trap for many. We have to take crazy measures to deal with it. But if you are disciplined and determined enough a year or two of minimalistic life and discipline will take away a decade of your worry.