Paying Off $75,000 in Student Loans in 5 Years – Tips From a Student Who Actually Did It!
Many American students graduate with several thousand of dollars worth in student debt. Of course, it is quite evident that people want to pay off this debt as soon as possible. To help students pay off their debt effectively, here are some tips from a student who managed to pay off his student debt in 5 years.
Get Paid What You’re Worth
Ensuring you have the ability to pay off your debt quickly means that you need the right income. Unfortunately, when you just get out of school with a degree, it is easy for companies to take advantage of you and offer you less than you are worth, mainly because graduates are desperate to get some money and start paying off that student debt.
Still, it is vital to get paid what you are worth and not stick with jobs where you have no possibility of growing. Unfortunately, this is a mistake many people make, leading them not being able to pay off their debts properly.
Combining Life with Student Loan Repayments
When a student graduates, they are often so focused on repaying their student loans they actually forget to live. When you graduate, you must expect other life expenses, so do not spend everything you earn on your student loan repayments!
One major expense you will have to expect when you graduate is moving to your own home. Set some money aside for furniture, your deposit and other vital things you will need.
Create a Plan
To ensure you can make your repayments effectively, you will need to create a repayment plan. The repayment plan must match your overall budget and you must put some money aside in savings for unforeseen expenses!
Creating a plan also means you have to look at cutting some expenses. For example, you could obtain a cheaper cellphone service, cancel some online subscriptions you aren’t using etc. Even though this may seem like minor cutbacks, combined they can have a major effect on your repayment power!
Feel Underappreciated? Don’t Be Scared to Switch Jobs?
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Do you feel your working your fingers to the bone without a matching reward? If so, you might find a job somewhere else a few years down the line. Once you have some experience and the skill set to match, it does not hurt to see what other positions are out there fore you. Of course, you should never leave your current job until you have something better lined up and confirmed.
Paying off your student debt quickly and effectively usually comes down to common sense. You create a budget plan for yourself and search for various income sources that could contribute to your overall repayment power.
Of course, not everyone can get a high paying job from the start, so some people may find that it takes them a little longer to pay off their student loans. Still, when you have the motivation and the skill set to match, nothing is stopping you from paying off your student debt and finally become free!
Disclosure: The information provided by The Financial Genie is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. The Financial Genie does not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Additionally, some of the organizations with products on our site may pay us a referral fee or affiliate commission when you click to apply for those products.