Importance of Education Essay Why you need to attend education technology conferences in 2016 Essentials Of Education

If you find yourself in a lot of debt when you graduate from college, know that you are not alone. In fact, many students graduate with student loan debt and the average amount is somewhere around $30,000 to $40,000.

That is A LOT of money and you will find it difficult to wrap your head around it, especially if you do not have a job yet. Luckily for you, you do not have to start paying back your federal student loans until six months after your graduation. This means that you can look for a job and start getting paid BEFORE you have to worry about your debt.

Ready to start working on getting yourself out of debt?

  1. Identify Which Loans to Pay Off First

fsd5shg33If you have multiple loans in your name, work to identify which ones need to be paid down first. For instance, you want to pay down the ones with the highest interest rates even though they may be the smallest ones.

Interest on your loans can easily skyrocket the total cost of your loan and you will pay thousands of dollars over the course of the loan’s term.

  1. Refinance Your Loans

Refinancing your student loans is a good idea, especially if you are qualified to do so. When you refinance, you will receive a lower interest rate from the new lender and this results in thousands of dollars in savings.

The first place you will see the savings is in your monthly payment and the second place is in the length of the loan terms. For example, if you pay 6.8 percent interest now and your new lender drop the interest to 3.5 percent, you will save $10,000 or more in interest payments over the course of the loan.

Before you get too excited, you do have to apply for and be approved for refinancing, which often means you need a cosigner.

  1. Pay More Than the Minimum

One of the fastest and easiest ways to get out of debt after graduation is to pay more than the minimum amount required on your student loans. Your loan lender will send you a monthly statement that tells you how much you need to pay to keep your account in good standing. This amount is usually dragged out over 10 or 20 years.


Even if you can only afford to send in an extra $10 or $20 per month, you will find that you can cut the term of your loan in half in many cases. If you do not have the extra to send each month, send in extra when you receive a cash windfall. A cash windfall is best described as a lotto winning, a tax refund, etc.

If you have recently graduated and you are trying to get out of debt, consider the above ways to help get you out of debt quickly. You will find that if you set realistic goals and work towards them that you can get your debt paid down.


If you are thinking about taking out student loans for college, it is important that you sit down and think about your options prior to signing any contracts. Many students find themselves buried to their eyeballs in debt because they end up not paying attention to the amount that they are borrowing.

Remember, all student loans must be paid back and you are responsible for the debt, whether or not you can afford it. Below, we will go over some of the different ways that you can save yourself money on your student loan debt.

  1. Only Take Out What You Need

The first way you can save yourself money on your student loans is to only take out the amount of money you need. For example, if you are offered $5,000 for one semester, but you know you only need $3,000, do not take out the whole $5,000.


Taking out too much money is how students find themselves drowning in debt when they are out of school. That $5,000 does not seem like a lot now, but five semesters and you already owe $25,000 and likely do not even have your Bachelor’s degree yet.

  1. Exhaust Free Money Options

Before you simply apply for loans and accept them, make sure that you exhaust all free money options that are available to you. When we say free money options, we are talking about scholarships and grants.

For example, see if you qualify for the Pell Grant. Students with a financial need often qualify for this grant and you can receive up to $5,000 or more. Sometimes, depending on your program and the school you choose, you may only need to take out a small loan to finish paying off your college tuition.

  1. Pay Interest While You Are in School

The next thing you can do is pay off interest while you are in school. If you receive federal student loans, you can opt in to pay interest while you attend school or you can opt to not pay it until you start making actual payments.

To keep your costs lowered, you should pay the interest. Most interest is only a few dollars per month and no more than $50. If you can afford it, make sure you send the payments. Trust us, interest can add up to thousands of dollars over the course of your loan.

  1. Create a Budget

A budget will help you properly plan to make your student loan payments and also save money for your future. If you are working a job that does not pay a full livable salary, you will quickly find out that you have to give up some of the things you love the most to pay your debt down.

While these sacrifices may be hard, you will definitely thank yourself later for living a year or two in a tough position to not have to worry about paying your student loans when you are 40 or even 50.


  1. Make a Plan for Yourself

Lastly, you need to sit down and make a plan for yourself and this plan should include what your goals are and how you plan to save and budget. It may seem easy to make a plan, but as you get into the meat of it, you may struggle to figure out how you will pay for some bills and how you will afford to eat.

While you consider and write out your plan, think about some of your payment options as well. Federal student loans offer an income-based repayment program that structures your payments based off of the amount of income you make per year. This is beneficial for you because if you have a tough year, your payment amount could essentially be $0.

While paying down your student loans is not something you want to do, it is something that needs to be done. The above five tips will help you save as much money as possible on your federal student loans. When you do consider a loan, make sure you think about it first and evaluate your situation BEFORE you just sign the contract. Planning will help you make wise decisions.