Home > Students > 10 Ways to Manage Your Student Loans

Comments 0 Comments

Student loans are a hot topic these days, with everyone wondering the same thing: How are current college students or recent college graduates going to repay theses debts?

While millions of Americans have been navigating these waters for years, new graduates may be nervous about the total bill for their degree. Education is still a wise investment to make, and paying these loans back is very doable.

Here are a few tips to help you manage your student loans and keep them from overwhelming you:

Choose a career field that will pay you back

For those who aren’t 100 percent sure what line of work they want to go into, a career in public service can be rewarding, in more ways than one. No only will you get the benefit of the opportunity to improve your community, but working for a local, state, or federal government agency makes you eligible to apply for the Public Service Loan Forgiveness Program. If you qualify, some of your student loan debt may be forgiven. Additionally, since the public sector is about to experience a mass exodus in the form of baby boomer retirement, there’s predicted to be millions of vacant jobs in the coming years for millennials to fill.

Add a little to your monthly payment

If and when you can afford it, add $10-20 to each monthly payment you make. This amount will be applied directly to your principal amount, as opposed to paying off some of your interest. This also creates a small avalanche effect of its own, since reducing the principal amount also reduces the interest accrued.

Get a part-time job

It’s not ideal, but if you’re already employed full-time, and your loans are still overwhelming, there might be some part-time jobs out there that can help ease that burden. The side-hustle economy is booming, and there are hundreds of jobs out there that can be done on your own time and at your own speed.

Expand your job search

If you’re not finding full-time work in your area that pays enough to help you manage your student loans, consider expanding your job search… across the ocean. A lot of other countries, such as Japan, Korea, and China, are looking for native English speakers to educate students. These jobs pay well and often offer paid room and board, so you can send as much money home to your student loans as you want.

Cut out wasteful spending

Instead of buying a morning cup of coffee every day on your way to work, make your coffee at home instead. At the end of each month, calculate the money you didn’t spend on daily coffees (or other similar luxuries) and consider adding that amount to your student loan payment that month.

Consolidate your loans

Professional loan consolidation or credit repair may be a good option for those who have multiple loans from various lenders, and may be paying several different interest rates. Loan consolidation can be done in a variety of ways, but if you’re not sure where to begin, a specialist can help you.

Find employers that offer tuition assistance

Many different industries that didn’t exist twenty years ago have taken root in America, and they’re looking for the best talent, which makes them competitive with their benefits packages. Many employers will now offer tuition assistance or reimbursement. Try asking a new or prospective employer if they would consider putting this in your benefits package. The worst they can do is say no!

Apply the ‘avalanche’ method

If you have multiple loans, make the largest payment to the one with the highest interest rate each month, paying it down in a shorter amount of time. When this is paid off, move to the next highest interest rate, then the next, and so on. While already a popular method of paying off large sums of credit card debt, this can also help those who have multiple loans at varying interest rates.

Refinance through a different lender

If all you want is to simply lower the monthly amount of your student loan payment, try refinancing through a different lender. New loans generally get lower interest rates, so take advantage of this.

Bump your payments incrementally

During the first year of student loan repayment, you may not be able to pay more than the bare minimum due, and that’s ok. But if you get a raise, and you can afford it, use the raise to bump up your payment a small amount. Do this every year and before you know it, you’ll cut months or even years of repayment off your loan.

 

If you’re concerned about your credit, you can check your three credit reports for free once a year. To track your credit more regularly, Credit.com’s free Credit Report Card is an easy-to-understand breakdown of your credit report information that uses letter grades—plus you get two free credit scores updated each month.

You can also carry on the conversation on our social media platforms. Like and follow us on Facebook and leave us a tweet on Twitter.

 

Image: iStock

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other sponsored content on Credit.com are Partners with Credit.com. Credit.com receives compensation if our users apply for and ultimately sign up for any financial products or cards offered.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.



Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team