College graduate usually studies for a minimum of four years, get their degree, try to move on with their life until one problem often catches up with them. Their loan nemesis! It is no news that most college students here in the United States, do owe a lot of student loans. So that’s why we’ll be looking at how to pay off student loans. If you’re a college graduate or student, who is currently owing to a student loan or planning to take one, then this article is specifically for you.
You could also read our article on best credit cards for students with no credit history
Set Monthly Payments
Set ambitious monthly payments that force you to stay within a tight budget. Forcing yourself to commit larger monthly payments will enable you to cut down on some of your spending in other areas of your life to make those larger payments. For instance, if you owed $38,416 in student loans, set yourself up to
pay a minimum of $1200 monthly, which may leave you with an average of $800 as your monthly budget to live off. Even though you might think that $800 wouldn’t be enough to cover your monthly necessities such as rent, car payments, food, travel, gas and so on, trust me, if you put yourself in such a tight condition, you’ll find a way to survive off the 800 bucks
Look for Other Sources Of Income
Find other sources of income than just your primary job. You can find a job outside of your regular nine-to-five job at Starbucks, if you’re working there assuming, to pick up a few freelance gigs like working on film sets, editing short films, doing photography if you have a skill or something you’re good at or passionate about. In essence, try out different sources of income and explore opportunities that will bring in more money at the end of the month.
Sell Out Old Stuffs
You can make some money just by selling old things. For instance, if you’re a musician and do have some extra equipment kicking around the house, that you probably haven’t been using that much, you can sell it out to still bring in more money towards paying off your school loan debt.
Make Self Sacrifices
Overall, if there are ways to reduce your spending, do those things. When you set the goal of wanting to pay off a huge loan fee of $20,000 a year, you should know that you’re going to have to make some adjustments and some sacrifices in your day-to-day lifestyle and budget. So, you can give yourself a tight budget for social activities and do your best to keep those at a minimum. If you were living alone, during such time, you might as well consider heading back to live with your parents for that year.
Doing this is not something you’ll be overly proud of or enjoy, but it will allow you to take money that you would be spending in excess on rent and food.
So basically, if you’re really bent and determined on paying off your student loan, you will have to be ready to sacrifice your things like in selling them, sacrifice the pleasures like in going back to stay with your parents, and be willing to go extra miles by having to find two or more sources of income to help boost your resource level. If you can do this for at least a year, while neglecting anything that will cause you to have an urge to impress the Joneses, then you will be able to pay off your student loan in less than no time.
Other relevant reads: