Paying Off My Student Loan

| January 2, 2012

One of the greatest types of stress students face these days is not academic in nature, but rather it is financial. Financial stress has truly hit students in this tough economy. Many students are concerned about how they will pay off student loans after graduation. There are a few ways students can pay back student loans as soon as possible after graduation.

First, any student should actively negotiate the salary of his or her first job offer. Many students rush into accepting the first job offer they receive which can eliminate any potential for comparing salary offers. Companies are in the business of hiring new college grads at very low pay rates, because they exist to keep costs low and make profits. One way to negotiate compensation with a company is to state that one is flexible with compensation, but “would the company consider $X amount in return for my skills A, B, and C?”

A student will have six months before interest starts accruing on student loans. During this time, any student should continue to live like a student. Keeping a cheap apartment, using public transportation, and eating inexpensive food are some ways to continue to keep costs down. In six months, a student should try to pay down as much of the principal amount of a student loan as possible. This will prevent interest from compounding on the loan after the initial six months have passed.

Researching and using all possible tax credits is one more way to keep student loan costs down. All too often, students spend a tax refund as soon as they receive it. Using this money to go toward actual educational expenses will save a person much stress in the long run.

To pay off a student loan as fast as possible, shopping must be put to a halt. When at the store, a student should always ask himself whether something is a “need” or a “want.” If something is a need, then it may be purchase. If something is a want, then a student should refrain from purchasing the item. Buying things simply fills an impulse or emotional need in a moment of weakness. The more a student can refrain from impulse shopping, the more money he or she will have to pay down student loan debt.

Using these tips, any student can successfully pay off a student loan as soon as possible.

Category: Student Loan

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