Students’ loan debt is bulging by the day, and posing a threat to the economy of the individual students and at the national grid alike. Dealing with this problem, however, can be quite easy if we can approach it realistically and acknowledge that it is a problem which necessitates action. Cutting on the high spending we are indulging in can go a long way in fighting this menace, and facing it right away instead of dodging can help break the ice as well.
Student loan debt is a national problem. As of January 2016, total US student loan debt was over $1.2 trillion, and market analysts have warned about how this expanding student loan debt has become a bubble. That bubble bursting could have serious consequences for the US economy, as banks and the government could be crushed under a pile of insolvent student loans.
Let us start with one fact: by and large, people go to college because they want money. College should be viewed as an investment where you spend money on tuition now to make more money later – and despite the concerns over debt, college is still a good investment.
But the first step to make money is to not spend it. You are in debt. And the reality is that when you are in debt, there are sacrifices which you have to make in order to get out of debt. It may mean delaying a marriage, getting a worse car, or not eating out, but things like that will help to lessen debt over time.
Don’t look for the easy way out
There are thousands if not millions of young adults just searching for an easy way to wipe out their student loan debt and start clean. And that sort of environment attracts scammers looking to prey on the fears and hopes of the desperate.
Honest student debt relief organizations will never demand money up front, but the simplest rule you can follow is that if a group’s offer seems too good to be true, then it probably is. This example from the Consumer Financial Protection Bureau should serve as an example of some of the things a scammer will do.
There is no easy way out of student debt, and looking for one will get you in trouble. Acknowledging that you are in trouble is the first step to getting out of it.
Repaying your college loan does not has to pose a hard time for you. You only need to be smart with the planning on how you are going to handle the debt in repaying it. You have the grace period at your disposal, make use of those few months and maximize them to train yourself into the repaying situation if you have a job somewhere. Also, take your time and know what your lender expects of you and the terms of repayment of your loan.
Take advantage of your grace period.
Depending on your loan type, your lender may have granted you a grace period after you graduate (or stop attending the college) where you don’t need to make any payments towards your loan. Avoid the tempting option of simply ignoring your debt during this period. If you still have the luxury of a grace period, now is the time to fully understand your loans, make a game plan and if possible, start making those payments you’d normally be making anyways. For example, if your loan payment is going to be $250 per month, take that $1500 at the end of six months and apply it towards your loan. Not only will it reduce your loan, but you’ll already be in the habit of putting that $250 aside.
Understand your loans.
Even if your grace period is long gone, the first step in dealing with your student loans is to really understand what you’re dealing with. It’s easy to turn your brain off, make your minimum payment (if you can even afford it), and go on. But to actually make an impact, you need to know how your loan works.