While we wait for the government to step in and help pin down some solutions for helping graduates with their student loan debts there are still things to be done. If you are eligible for student loan debt forgiveness program, consider yourself one of the lucky ones. For all the others who are still in the process of finding help through a student loan lawyer, consider a few things to help you make those payments to keep you out of default and get out of debt faster.
It can certainly be tempting to start catching up with the Joneses after you have graduates, you are true adult now after all. However, consider your priorities. Living a lavish lifestyle just isn’t in the cards nor should it be a priority right now. Instead of buying a new car or spending thousands on a new career wardrobe, look for ways to be a presentable employee without spending your free cash on unnecessary items. Shop at resale stores, keep your old car, and brew your coffee at home. Take the money you are saving each month and put it towards your loan payment.
It is estimated that one-third of graduates return home after college. While this might sound like a step back, it can actually be a great step forward in eliminating your student loan debt. Imagine saving $500 or more dollars (depending on whether you contribute some rent to your parents) each month that could go directly to your student loan. That is a $6000 or more of your loan debt wiped out in just one year! And if moving home with mom and dad isn’t your thing, keep your apartment with your friends and continue to share rent for a few more years.
Refinance Your Loan
Most graduates exit college with the same interest rate they had at the time of taking out the loan. Rates have lowered since then, so why not take advantage of that? Contact your lender and negotiate a lower rate. You can save significantly on your monthly payment and the total amount paid over the life of the loan. You could put that extra monthly savings back towards your principal and chip away at your loan balance faster.