Estimates put total U.S. student loan debt at around $1 trillion. With that kind of debt floating out there, it's important to figure out ways to try to reduce it. Here are six helpful tips for reducing college debt.
1)Don't borrow more than you need
Student lenders often offer you more than
you need for tuition, and it's tempting to take the maximum amount, which you
could use to cover living expenses or to have a little spending money. However,
doing so increases your debt. If you stick to the minimum you need to cover
tuition, it will reduce your debt.
2)Stick with a state school
Though you may have your heart set on a
private school or a university in another state, you should stick with your
in-state school unless you have a scholarship to reduce the cost or the private
school offers a lucrative major that your in-state school doesn't.
3)Stick with federal loans
If you qualify for a federal student loan,
you should take advantage. These loans typically have lower interest rates and
more flexible repayment terms than private student loans. Federal loans also
sometimes offer debt forgiveness if you go into certain jobs, such as teaching
or medicine.
4)Make payments while in school
Though most student lenders defer repayment until you leave school, that doesn't mean the interest is deferred. If you can afford to make payments while you are in school, it will greatly reduce the amount of debt you have when you leave school.5)Finish as quickly as possible
Very few students finish college in four years, but doing so can greatly reduce your student loan debt. One thing you definitely want to avoid is changing majors, which can easily add at least a year to your necessary schooling. Carefully select your major and use your adviser to make sure you don't take classes you don't need or that won't count toward your major.6)Take advantage of consolidation
If you can get a lower interest rate on any of your loans, take advantage of it. For example, if you have both private and federal loans and you can consolidate the private loans into the federal ones to get a lower rate, you should do so.Student loan debt is nearly possible to get rid of, even if you declare bankruptcy. If your student debt has damaged your credit score, you can use Lexington Law credit repair services to get it back in shape.
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