We all dream about a financially secure future after school but the raising fees of tuition, accommodation, library, commercial and research works often turns this dream into our worst nightmare and when we finally leave college we are stuck with pile of debt. College is a huge investment which sometimes compels us to borrow student loans but if you act a little cautious and plan your finances well you can evade falling into a student debt trap. As debt relief programs are not applicable in case of student loans, it is quite difficult to find ways to tackle your student debts. Read on to know a few ways to ease or eradicate debt woes in student life.
Know your debts well- It might sound a little absurd but it is true that maximum students are clueless about the exact amount of debts they owe. As a result they fail to handle their finances in an organised manner and end up incurring huge debts. Ideally, you should create a list of your debt obligations and make a clear estimate of the outstanding amounts you owe and make the repayment plans accordingly.
Make a proper Budget: Start following a strict budget and curtail your expenses. List your total monthly allowance and expenses and design a budget on its basis. Live and spend within your means and if required spread out the cost of your accommodation, study materials, cafe bills with your other class mates.
Repayment plan- If your student debts took a mammoth shape contact, your creditors and negotiate for a restructured payment plan. While convincing the creditors arm your self with all your income proofs, recent billing statements and other substantial paperwork. Ask the creditors to allow you to push back your payments in case you find difficulty to grab a job after the completion of your studies.
Preventive measures- If you like to spare the horror of facing student debts you can fill out the FAFSA (Free Application for Federal Student Aid) form which can help you to attain student loans with favorable terms and conditions. You can consider borrowing a Stafford loan, a form of Federal Financial Aid for undergraduate or graduate students. These are low interest loans for part time and full time students and you can borrow your full tuition fees by opting for Stafford loans. However, in case you let your debts go into default and 270 days pass without any payment, the government has the fair right to garnish your wages. Things could e worse in private loans where anytime you could be sued for the debt amount.
Critical situations- If you have no hope left to reimburse your student debts you can join AmeriCorps or Teach for America where your loan can be partially or even completely forgiven.
Remember, if you default on paying your student loans, they can turn into a great menace. Therefore, make sure you obtain a degree from an accredited college or university which offers good career placement services in future. If you have already incurred student debts, then follow the above mentioned tips and deal with your student loans in a better way.