According to statistics from 2018, more than 1.2 million borrowers had six-figure student loan balance last year. This is just a small part of a whopping $1.5 trillion student debt crisis that only gets worse year every year. Average graduate school with nearly $30,000 in loans in 2018. Fortunately, there are steps you can take to minimize the financial effect of student debt whether you are still studying or starting a career.
Joe DePaulo, co-founder of College Ave student loans, you should consider making payments on your student loans while in school in order to reduce the total amount of your student loan debt and save yourself money over the life of your loan. The faster you move away from your student debt, the less you will owe overall. This is especially true of unsubsidized loans. By keeping payments as you go along would help keep your balances in control.
If you have already graduated and found yourself in student debt over $1000, it is always good to consider to refinance with a private lender. Refinancing your student loans can help reduce the amount you owe over the life of the loan, reducing monthly payments, in some cases.
You can also opt-in for income-driven repayment plans. With income-driven repayment plans like Income-based repayment, Income-contingent repayment pays as you earn, and revised pay as you earn, borrowers can pay a percentage of their discretionary income for 20-25 years. After a few qualified repayments, you can also apply for loan forgiveness in the end.
If you are struggling with your student debt, it is a good idea to consider some ways to increase your income. With a side hustle, overtime at work, or any increase in income you may be able to pay down loans without sacrificing other life goals like buying a new house or getting settle in your favorite city.