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Helpful Tips for Paying your Student Loan Debts

There was a recent study that has been made by the National Center for Education Statistics that shows that about 50% of recent college graduate have a student loan that has an average student loan debt of about $10,000. The average cost of college increases of about twice the rate of inflation. Due to the rising costs on college, it can be difficult for any aspiring college student to get enough scholarship and grants for paying college and for basic necessities. There in fact are more college students nowadays who are forced at using credit cards to actually pay its basic necessities such as books and also for school supplies. Based on the United Marketing Service (UCMS), the number of credit cards for every student is 2.8.

Below are some tips to which could help you in paying your student loan debt:

Developing a plan in paying off your student loan debt before you graduate is very important.

Saving money likewise is very helpful. Every summer throughout the college education, you should consider getting a job or an internship. You should then save half of the money in a high interest savings account. After several months, you then should consult a financial advisor in order to get the highest possible return on your money. After you graduate college, you can then use the money you have saved in all your 4 years to pay on your college debt.

See to it that you have caution on consolidation. Consolidating student loans will combine your loans to one payment, but this may or may not give you lower interest rate. Be sure to do extensive research before you consolidate your student loans. Another addition is that you may not possibly be eligible for various student loan forgiveness programs if you consolidate the student loan.

Exchange work so you are able to reduce debt. Perform volunteer work or work for the following in exchange in reducing student loan debt: providing legal and medical services at low income areas, working for Peace Corps or teaching in areas with low income students.

Try to apply for grants. You may want to consider applying to many grants and scholarships which you possibly could. You may also apply for the federal grants like the Federal Pell Grant (Pell Grant), Leveraging Educational Assistance Partnership (LEAP), Federal Supplemental Educational Opportunity Grant (FSEOG) Program as well as the National Science Scholars Program.

Make sure that you also protect your credit. As much as possible, avoid making late payments with your student loans as this will be reported on your credit report and could remain in it up to 7 years. If ever you are forced in facing financial hardship, make sure to call the student loan company and inform them on your situation and then ask for a loan deferment so you could get guarantees that your credit will not be damaged until you are able to make the payments again.