Student Debt Struggles: How to Get Out of Them

| July 18, 2016 | 0 Comments

Student loans often add up to hundreds of thousands of dollars. They can take a lifetime to pay off and feel like a huge burden. While some people can manage their debt easily, others aren’t so lucky. Even if you manage to land a well-paying job, you can feel like your student loan debt is getting on top of you. After graduating, there can be many other expenses coming your way. Adult life is full of expensive events, from buying a new car to get to your first proper job to getting married. You might even continue into graduate education and build up even more debt. If you’re struggling, here are some of your options to deal with it.

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Get Organized

If you haven’t already taken a long, hard look at your finances, you need to do that right away. Although no one wants to live an incredibly boring life just to survive, sometimes it’s necessary to be strict with yourself. You won’t have to remove all joy from your life in order to make some savings, however. In fact, many of the savings you could make can be on the boring things. Maybe you can get a better deal on your energy bills or save on your car insurance. When it comes to fun expenses, you can save without making your life miserable. For example, do you need to go to Starbucks every morning when you could fill a travel mug with coffee from home?

Refinance or Consolidate

Refinancing or consolidating your student loans could be the answer for you. If you choose to refinance, you move your debt from one lender to another. A private company pays off your debt, and you will owe them instead. This might seem pointless, but the idea is to get a better interest rate with your new lender. You can find some great student loan refinancing choices that will make your debt more manageable. Refinancing can also help you consolidate your loans. Instead of having several payments to make, you can turn them all into one payment.

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Loan Forgiveness

Some people are able to use student loan forgiveness, when they can be excused from paying their debt. It sounds perfect, but you need to meet a set of criteria to be able to access it. It will largely depend on where you live. Some states have programs to help you with your debt, while others aren’t as helpful. There is also a federal program, Public Service Loan Forgiveness, which can help you with federal loans. You need to work for one of a number of institutions connected to the government or public services. It’s unlikely you will be able to have all your student loan debt forgiven. For example, the PSLF requires you to make 120 payments on your debt. However, these programs can help you deal with some of it.

Student loan debt can be a huge worry that greatly affects your life. If it’s difficult to deal with, make sure you explore your options to make it easier.

Category: Student Loan

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