While we had written previously on this topic, we would like to emphasize one more time that there is a proper need and discipline required to get student loan and keep them to the absolute minimum. A student loan should only be taken for education and relating to the direct expenses of education—should not be a mean for income or revenue generating. The consequences of high student loans are atrocious. A word of caution for parent also. Read what you sign, and demand your child’s achievement and accomplishment including his scoring. It is very important you should know everything when you co-sign a student loan because you would be jeopardizing your golden years if you are wrong and sign needlessly. Two-thirds of kids receiving an undergraduate degree this spring will leave campus owing money for their education, according Sallie Mae. These students will have an average balance of about $20,000, and within six months they’ll be required to start making monthly payments of roughly $270.
Again, your education should be goal related, and get education where it is corresponding with your employment and devise a payment plan right away. Don’t wait for later years to pay the banks or Sallie Mae. A marriage or children down the road would make your budget more stringent and lesser payment can be done.
1. Don’t borrow more than what you need.
2. Start paying right away. If you get some surplus money, like personal injury settlement, or inheritance, pay them right away.
3. Try not to take needless forbearance or any other postponement.
4. The student loan agencies would gladly give you forbearance, avoid them.
5. Sign up for automatic payment, even from your payroll.
Apply for loan forgiveness. By volunteering with AmeriCorps, Peace Corp. or VISTA you may qualify to have some or all of your college debt wiped away. Other options include spending time in the military, teaching, and doing social work. Look here for more information.