A recent study by the National Center for Education Statistics shows that 50% of recent college graduates have student loans, with an average student loan debt of $10,000. The average cost of college increases at twice the rate of inflation. With the rising costs of college, it is difficult for aspiring college students to get enough scholarships and grants to pay for college and basic necessities. More and more college students are forced to use credit cards to pay for basic items like books and school supplies. According to the United Marketing Service (UCMS), the average number of credit cards per student is 2.8.
Here are 8 ways to help pay off student loan debt:
1. Develop a plan. Develop a plan to pay off your student loan debt before you graduate.
2. Save your money. Every summer throughout your college education, get a job or an internship. Save half the money in a high-interest savings account like http://www.emigrantdirect.com (5.05%) or http://www.ing.com (4.5%). After a few months, consult a financial advisor to get the best possible return on your money. After college, you can use the money saved over the 4 years to pay off your college debt.
3. Be careful with consolidation. Student loan consolidation combines your loans into one payment, but may or may not provide you with a lower interest rate. Do extensive research before you consolidate your student loans. Also, you may not be eligible for various student loan forgiveness programs if you consolidate your student loans.
4. Work exchange to reduce debt. Volunteer or work for the following in exchange for reducing student loan debt: teach in certain places with low-income students or areas with teacher shortages, provide legal and medical services in low-income areas, or work for Americorps or the Peace Corps.
5. Get a work-study job. To help pay for college costs, get a work-study job on campus to help defray the cost of college. Go to your campus employee office to ask about your work-study program. Work Study Jobs pay at least the minimum wage for that state.
6. Apply for lots of scholarships. In recent years, budget money for college scholarships has been reduced, making it more difficult to get a scholarship to go to college. You can increase your chances of getting a scholarship by completing as many scholarship applications as you can. If you complete at least 50, you should receive at least 5 scholarships. Also, go to your campus financial aid office and ask about financial aid programs that schools provide to students. Make friends with the staff at the financial aid office, who will alert you to financial aid programs when they become available. You can also search the Internet for scholarships. Some scholarship websites are http://www.fastweb.com, http://www.scholarships.com, http://www.finaid.org, [http://www.college-scholarships.com] or http://www.scholarshiphelp.org.
7. Apply for grants. Apply for as many grants and scholarships as possible. You can also apply for federal grants such as the Federal Pell Grant, the Federal Supplemental Educational Opportunity Grant Program (FSEOG), the Educational Achievement Assistance Association (LEAP), and the National Science Scholars Program. Some grant websites are http://www.scholarships-ar-us.org/grants/, http://www.scholarships-ar-us.org/grants/women.htm, http://www.careersandcolleges .com .
8. Protect your credit. Try to avoid making late payments on your student loans, if you do it will be reported on your credit report and can stay up to seven years. If you’re in financial difficulty, call your student loan company and tell them about your situation, apply for a hardship or a loan deferment to make sure your credit isn’t damaged until you can start making payments again.