How do you pay off student loans?

students who just have a degree but no practical knowledge have increased since the last decade. So for taking admission in good college you need to take loan. But these below points you need to follow for repayment within the given time

Make use of the grace period

Live a minimal life

Get a job

Pay down the principal balance

Repay while still in school

Hopefully, if you have student loan debt, you have some degree or specialized training to show for it. This should help you get a better paying job than you would have been able to get without your extra education or training. Put that extra earning power to work paying down your student loans.

I recommend listing all of your loans along with the minimum payments and the interest rate. Order this list from the highest interest debt to the lowest. Make the minimum payment on all your loans on time every month. Then apply any remaining money to the loan with the highest interest rate. Once that loan is paid off work on the next and so forth.

Paying down debt requires discipline. It requires doing without anything you don’t really need. Pay your rent, and your groceries and your utilities and the minimum you can for transportation. Drive a used car or take the bus; get a room mate; don’t eat in restaurants; avoid drinks at coffee shops or buying snacks; pack your lunch every day. You’d be surprised how much cash flow you can free up every month if you avoid frittering money away. Make getting debt free your priority and it will happen.

One should not take out such huge loans in the first place. You can get a quality education for a fraction of the price. Employers don’t necessarily give extra consideration to students who got their education from ridiculously expensive schools. Do not borrow more money than you’re able to pay back. It’s irresponsible.

In fact, easily had been an employer and knew an interviewee had such big student debt, I Would Personally assume she or he is reckless rather than also brilliant.

I think the first part of this answer is, “don’t get them or get as little as you possibly can”. I am a 41 year old with a family of 8, wife does not work, and I now own my own CPA firm.

Back when I was in my mid-20’s I had one kid, I was married, and we lived in a small apartment in an undesireable part of town (you know, to help keep rent down). I drove a 15 year old Dodge Neon that was pretty trashed and my wife stayed at home with our daughter while I was determined to help improve our lot. I was about 2 years out of college and I made $16/hour at that junction. We didn’t have a lot but we were happy (I mean, I was married to a beautiful French woman who for whatever reason marriage to me was the right decision for her and that pro-creation was also a good idea).

I started in my masters program at Golden Gate University in 2002. I took one class per semester first year (whilst working full-time) and when I went to more than one class per semester I had access to student loans. The classes were pricey (2k/class) and there was no way I’d be able to take them without getting the loans.

I applied for the loans and got an astounding loan offer back – over the following two years I was offered a total of $50,000 in loans from the school, even though I really only needed about 12k (I could pay for a couple of the classes from my tax refunds). The loan paper was almost numbing. $50,000? I was shocked. I took the bare minimum that I needed (about 12k) and let the other 38k just go even though I would have been able to take the money and maybe take a trip, buy a car, live in a nicer part of town, or afford some other luxury (we had neither cable nor internet in those years. Again, it was hard, but I didn’t have to pay anyone $50,000 back).

Whenever I see talk about excessive student loan debt, I think back to this experience and the difference in how progressives and conservatives face the loan issue. Progressives – “student loans are predatory in nature, surely they’ve been tricked, we should be providing this for free, etc. etc. etc.” My thought was that I would have rather lived on the cheap in bad conditions than to subject myself to paying that much back and subjecting myself to potential crippling payments. I can’t ever empathize with anyone who just wants to abolish student loan payments unless they want to first adhere a strict accounting over use of the proceeds of said loans. Anyone who prescribes otherwise just ignores the practical realities of personal responsibility.

TLDR – take much much less than you are offered, figure out a way to live off of less, then live conservatively once you are out of college to make sure you can pay those off.

The truth is, paying off debt isn’t easy but if you prioritize paying it down you can make it work.

I hated college debt because it made me feel tied down and enslaved to it. My first year out of grad school I made it a priority to pay off all $17,000 of my debt. That entire year I lived as frugally as possible. I went almost the whole year without a car, instead biking or traveling by public transit. I rented a room in a house instead of getting my own place. I rarely went out to eat or drink but instead got my consumption of food and drink and socializing done at my place or other friends’ houses.

Every month I put a thousand or so extra into those loans until they disappeared. The feeling of freedom and happiness upon being free of those financial chains was incredible. Not only was my happiness elevated, but also my self confidence. While sometimes I did feel awkward or even slightly embarrassed arriving everywhere on bike and being known as that crazy frugal guy, people really supported and respected my efforts to become debt free.

Something else I would like to add. Every time you plan to purchase something while you are in debt think about the purchase this way: I am about to spend $18 going out to eat. Is this meal going to be worth $15 more to me than the same meal at home? If I eat at home instead, I can cut $15 off my debt. Personally, I would calculate it even further and say, “if I have this choice twice a week and choose to eat at home every time, I will have over $1,500 extra this year to pay down my loan. Use the same opportunity cost based mindset for all your financial decisions and you will soon kick your loan’s butt!



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