That special day is finally around the corner. Graduating is a thrilling experience and is filled with excitement and joy. Some students are fortunate enough to graduate without student debt compared to the students that have to focus on paying back their loans.
Paying off student loans can be stressful whether you are a college student or a recent graduate. When working through college, we all have those times where we would rather spend the money we earn on what we want or even need at the time rather than focusing on paying off our debt. Doing this, we put the loans that we are accumulating on the back burner. After all, being poor college students searching for innovative ways to cook our ramen in order to save money, why would paying off our debt be at the top of our priority lists?
Accumulating a mass amount of student loans can be stressful. We need to start living frugally before we graduate from college and shave off some of the stress about loans we might feel in the future. Just think of how wonderful it will feel to graduate with a low amount of debt! Now, you are probably thinking that this is a great thought, right, but HOW can we achieve this goal? Here are a few tips listed below of how to start focusing on paying off your student loans today:
1. Set a realistic goal when you want to finish paying off your student loans
2. Focus on paying off the unsubsidized loans first since the interest rates start once you take out the loan and once paid off, focus on the subsidized loans
3. Calculate the percentage you would like to pay towards your student loans from each paycheck
4. Calculate and incorporate the amount you will have to pay each month into your budget in order to reach your goal
5. Even though you are not required to pay back the loans while in school, treat your loans like a monthly bill that you are required to pay each month
6. In order to reach your goal, be realistic in terms of your standards of living while paying off your loan
Whether you are contributing only $100.00 or $600.00 towards paying down your loans, the amount slowly adds up and lowers the amount of debt you owe before graduating. Take the challenge and start today!