Studies prove that student loan debt has elevated close to 70 percent within just the last 5 years with the national debt total surpassing $1.2 trillion, per Debt.com. There are not many college graduates that have easy access to $29,400 – which is the average loan debt per borrower. Here are a few quick yet effective ways to manage student loan payments.
Make Payments Before Graduation
A solid strategy is to start making payments even before you graduate. While your payments are not due until after you stop attending school for a considerable amount of time, you can start chipping away at your student loan debt early to save time and money on the backend.
Consolidate Your Loans for Added Savings
In most cases, college students get their financial aid and student loans from multiple sources – private, government, personal bank loans, etc. Considering a federal student loan consolidation will allow you to place all of your loans under the same financial umbrella – allowing you to pay one company with a competitively priced financing option.
Focus on the Interest Payments
Even if you are not able to make substantial payments your federal student loans while attending school or consolidation is not a feasible option for you, it is highly recommended for you to focus on at least paying down the interest. Keep in mind that years after your school days are behind you that interest will still accumulate along with your principal balance.
You will be able to get ahead much further than you think by making payments toward the interest as soon as possible. Even if you qualify for a deferment or forbearance of your student loans, making a plan to pay down the interest will still add up to a nice-sized chunk of savings in the long run.