Repaying Student Loan Debt

By Jordyn Austin on April 22, 2017

Many students go to college knowing that they will have to use student loans to pay for school. You may forget about the loans for the next few years, but when it comes time for graduation, you are suddenly reminded about the money you owe.

Students don’t even have to add up the total costs of their debt to know that debt is quickly accumulating. It can be quite terrifying to know that you owe money and you may feel like you don’t know how you’ll take care of it, but this article should help ease some of that anxiety and hopefully lead you on the right path to start paying off school debt.

image via https://www.pixabay.com/

The first step to paying off student debt is finding out how much you owe in totality. You should know the exact amount so you have a better idea of how bad (or good) of a situation you are in. You should take the time to add up everything you know including the total amount of loans, their interest rates, and the minimum amount of money you have to pay a month.

When you accepted the loans and went through a loan counseling, you should have been given some sort of login information where you could manage your account with the loan companies or government websites. Your statements should have your total amounts and you should call the loan lender to start to get information about repayment of your debt. Your lender should be able to answer every single question you have and if they can’t, make sure they refer you to someone who can.

As you contact your lender, you should start by asking if there is any possible way to reduce what you owe. Nothing is ever harmed by simply asking and you never know what kind of changes could be made. You could also ask if any of your debt can be forgiven. Be sure to ask about payment options and financial assistance options. Most lenders are willing to work with you and offer you the best options as long as you communicate your needs to them. Although the lender does not have to honor your requests, it never hurts to ask.

You can also ask about lower interest rates from the lender. Interest rates are really what causes your debt to accumulate quickly, so if you could get those lowered, it can be a tremendous help. One way to try to lower interest rates is to try to negotiate them. Again, it never hurts to ask.

As a side note, be sure to handle all of your business over the phone if you cannot get to the office. Emails and text messages lead to a lot of miscommunication and because someone does not have to deal with you in person or your voice on the phone, they are more likely not to negotiate with you. Digital communication takes away that give and take negotiation aspect of verbal communication.

Another way to help pay off your student debt is to control the money you spend and what you spend it on. Many college students are guilty of overspending and not keeping track of what they spend. Sometimes students have a hard time deciding between what they want and what they need. This causes frivolous spending when that money could be put towards debt.

Sometimes students can be so worried about the amount of their debt that they think the little bit of money they have probably wouldn’t even make a dent, so they spend it aimlessly instead. Look at the extra unnecessary expenses you have. Are you eating out a lot? Could you probably pack your lunch instead of buying all the time? Do you feel the need to go out every weekend with your friends? All these questions are something to ponder because you’ll be amazed at how much you’re actually spending and you didn’t even know it.

When paying off debt it is very important to stay motivated and to persevere. Be sure to continue on with paying off your debt. Once you lose motivation, it can be hard to gain it again and keep going. One way to stay motivated is to keep track of how much you’ve paid off. Think of a way to keep track of where you started and where you are currently. This will allow you to see that you are making progress. You can even create little incentives for yourself, like treating yourself to something you’ve been holding off on to cut spending down. This little reward can be something that motivates you to keep pushing.

You can even track your progress with the help of a friend. This is a great idea especially if they are trying to pay off debt as well. You can keep each other motivated and even keep track of each other’s progress. Sometimes challenges are more fun with the help and motivation of other people.

Student debt is certainly overwhelming, but it can be done with the right steps and the right help. Good luck!

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