Students apply for college loans to be able to afford expensive tuition fees which never seem to be going down. These loans become a huge burden later on after one is through with college. The only way to deal with debt is to pay but you do not need to lose your peace. You can successfully pay up and enjoy your life bas usual through some easy tips.
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.
Do not wait for your first official job in order to start paying up your loan, whatever you have now will do just fine. Start paying little by little so that in the future you do not have to deal with a huge debt that will take you off-track.
Don’t wait to start working. If you can take out student loans for living expenses, it’s tempting to simply focus on socializing and schoolwork. But if you’re facing a ton of debt come graduation, Smith says working in college is a must. She points out options like work-study programs that may let you learn and get paid at the same time, or full-time work over the summer so you don’t have to feel overwhelmed when classes are in session. The bottom line is that every penny you earn now can help defer future debt — and if you’re afraid of crushingly high monthly student loan payments, you can’t afford to put off working until after graduation.
Student loans also result in other issues. Young people cannot buy homes if they still have to pay up the college fees they owe. Paying a loan and paying a mortgage at the same time is a bit stressing.
So while the number of young people that have mortgages has decreased, those with student loans have felt it even more so. The researchers said the two are probably connected:
“There was a sharp decline in the percent of young borrowers with a student loan who had a mortgage in 2009, compared to the milder decline for those without a student loan This sharp decline coincides with the increased share of young borrowers who have a student loan. A plausible explanation for this larger decline in mortgage borrowing could be that banks would no longer lend to these borrowers, or that young borrowers with a student loan could not afford a mortgage.”
Demyanyk and Kolliner did say that the decline is probably not totally caused by college debt, but there was certainly some influence. And with the number of student loans expected to continue rising, the researchers don’t think the mortgage trend will turn around.