Student loan debt is increasing at a substantial rate. If paying down your student debt is a priority then the following are some simple tips:
Be a Penny Pincher
Eliminate extras until your debt is paid off. As an example, make your own coffee instead of stopping at Starbucks on the way to work. Work out on your own instead of signing up for a gym membership. Switch to a cheap phone plan and don’t go out to eat. Also, rethink a decision to get a new car. Purchase a used or a beat up car until your student loan is gone. You might also consider cheaper living accommodations by sharing living arrangements or live at home.
Those ideas and many others will allow for reducing your expenses thus having more money to pay down your student loans.
Work Two Jobs or Pick Up Piece Work on the Side
The only other thing besides reducing expenses you can do is increase your income. Look for a second job working nights or weekends. You could also pick up piece work in your chosen field or profession to increase your income.
The Best Idea for Student Debt is, Don’t Get Into Debt in the First Place
Be as frugal as possible while in school and look for ways to earn income while there.
The best way to eliminate debt is to not get it in the first place by structuring yourself or your family in the best possible situation in order to get the greatest amount of aid possible. Most families sending their kids to college have no clue on how to position their financial situation in order to reduce their EFC or Expected Family Contribution.
It is also important to understand how to position yourself or your student to get the most merit based aid possible.
The most important aspect of all is trying to find the schools with the greatest amount of aid possible (free money via scholarships or grants) instead of taking out loans. Student loans are fairly easy to get and because it is easy, students get into larger debt than they need to.
Taking advantage of help available and working a little harder in trying to understand the keys to getting more free aid would pay off big in the end. It would prevent more debt than is necessary to get a college education.
Student loans should be the last resort, not the first. If you do have student debt, be smart about its payoff. Remember, up to $2,000 of interest paid on student loan interest is tax deductible. Car loan interest is not tax deductible, unless used for business. So it might make sense to pay off a car loan before completely eliminating your student loan debt. And as a top priority, be smart about incurring as little debt as possible by getting the largest amount of free student aid.