Post on 20-Feb-2017
Five Ways to Get Out
of Student Loan Debt
Created by Matt Sapaula
Treat the loan like a mortgage
If you can afford to do so make larger
payments and treat the loan like a
mortgage. By making larger payments,
you will reduce the principal more
quickly, which will result in lower
interest charge. Another path that you
could take is by paying every two
weeks instead of once a month. Either
way you choose to pay, going down one
of these paths will significantly reduce
the amount of time that you will be
paying back the loan for.
Create a plan
Ideally you should be creating a
three to five year plan. Sit down one
day and look at your finances. Plan
out exactly how much you will pay
each month and make sure you
stick to your plan! Know how much
you make and see if you can cut
costs from somewhere else until you
pay off your loan. Having a plan can
really help you pay off your loan
faster than if you hadn’t sat down
and looked at your finances.
While in college start a business
Earning money while still in college is a great way to stay
ahead of your debt because you save money to begin repaying
your loans as soon as you graduate. Starting a business in
school something that is very easy to do, as many schools have
programs that help students if they want to start a business.
There are also organizations that specifically help students
who want to start their own company. There are many people
who started businesses while in college like Mark Zuckerberg
and Michael Dell.
Establish a fund
If your job allows you to do automatic
deposits, do it! Having money
automatically put into your bank
account is forced savings. It enables
you to set aside money instead of
immediately spending it on
nonessentials. To remind yourself not
to touch this money, make sure this
account is strictly for paying off your
loan. If possible, keep your money in
the account for as long as possible and
allow it to gather interest. Then make
a large payment towards your loan.
Student loan debt relief programs
If you call your state’s local government you can see what
types of plans they have available to help graduates pay off
their student loan debts. However, this process could take a
while and involve a great deal of paperwork. However, if you
have the time to deal with it it’s definitely a great path to
explore. Another option is checking out my company,
MoneySmartGuy. You can give us a call and see if you are
eligible for any student loan debt relief programs that we
can help you navigate.