If you are like most college graduates after finishing your studies, you probably find yourself with nothing but a solid debt ranging anywhere from $10000 to even $200000. Of course, you have your long awaited diploma, which you put immediately into use; however, you soon find out that the employment market is a tough and ruthless place.
Unfortunately, our universities have focused entirely on teaching us things essential only for our profession. This alongside with the fact that there's no remarkable difference when it comes to the level of teaching between all universities (apart from a few exceptions) means that each year there are millions of students graduating with similar knowledge and skill sets. Not only does it make it highly difficult to compete for jobs but it also gives employers a chance to hire anyone who agrees to a smaller salary.
What colleges fail to teach is the basics of financial intelligence. Questions such as how to manage one budget, how to invest or how to be an innovator are nothing more than an enigma to college courses and professors. However, don't worry most of the above can be taught. So how to start paying back your student loans?
1. Know exactly how much and who you owe money to. This information can be found in your contracts.
2. Analyse your budget and learn to have everything planned in advance. You can have fun with it and experiment by trying out new things like e.g. minimalism (do you really need the newest "iToy"?). By not splashing your money around you drastically increase your chances of paying back your loans quickly.
3. Save for your retirement. Don't sacrifice every penny of your income to pay back your debts. Have a plan for the future.
4. Choose one of the following options to pay off your loans:
- standard payment - monthly payments for 10 years.
- graduated payment - start with a low payment which rises during the next 10-30 years.
- income-based payment - you pay back different amounts every month for 15 years depending on your current salary.
- long-term payment - you have 30 years to pay back your loans with interest.
5. Take into consideration loan forgiveness programs such as: social work, Peace Corps, Americorps, teaching, military service, National Health Service Corps, Equal Justice Works etc.
6. Remember about tax credits available in your country.
7. Bare in mind that you can postpone your payments by negotiating with your lender:
- consolidation - all your loans become one and you get more time to pay them back but you pay more in interest.
- deferment - you don't pay anything for some time but your interest accrue
- forbearance - in some special cases you can get a 3 month grace period, so you don't have to pay back your loans.
8. Invest in yourself. Just because you've finished college doesn't mean you should end your education. Investigate possible income streams other than your job. Aim at developing a passive income from e.g. iPhone apps, web pages or your own company.
In addition, you can learn more about paying back your student loans at: http://www.payingoffstudentloanshq.com. Paying Off Student Loans Headquarters is a site that specializes in helping everyone who is paying back their student debts. Start paying off your student loans now!
I am specialising in helping people by providing information on how to pay back student loans in the most effective manner.
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