Getting Out of Student Loan Debt: A Lifetime Struggle
In a study of students that graduated from 2000-2004 showed that the average amount of debt is almost $16,000 for public school students and as much as $23,000 for private school students. These amounts pose a problem for fresh graduates, which is to find ways in getting out of student loan debt. There are approximately two-thirds of all students that use loans in order to pay for their higher education. Debts can divert the careers of graduates and even delay or impede their plans of getting married, buy their own home and start a family.
The sad reality is that getting out of student loan debt can last for years. An average 22-year old student that graduated in the year 2006, who consolidated his or her $40,000 loan at 6.125 percent will have to pay at least $243 each month until he or she reaches 52. Unfortunately, unless the example graduate do not act on getting out of student loan debt and find other means to earn money, he or she would only have paid the amount of the interest alone, which is about $47,000, when he or she reaches the mentioned age.
Tips on Getting Out of Student Loan Debt
Getting a higher education is expensive. After graduating, there is the stress of getting out of student loan debt that can be overwhelming to some. Fortunately, there are several tips to help students on getting out of student loan debt and also to those who are weakened by everyday financial issues, which can be extremely tiresome.
The first tip on getting out of student loan debt is to consolidate the loan debt. There are lenders who are more than willing to lend students money that they will need in order to pay for school. However, the loan may carry a higher interest rate, especially if the student to not have a credit or a less than perfect credit history. Through consolidating the loan debt, the student can achieve a better interest rate and lower monthly payments, as well as the convenience of making at least one payment each month.
Next on the roster of ways to help students in getting out of student loan debt is to refinance the debt. Consolidating the debt can help students on getting out of student loan debt and can even save them money though this may not bring a monthly relief to the students. On a lighter side though, refinancing the student loan debt can lengthen the term of the loan. This method can even spread out the student loan debt over a longer period and lower the monthly payments for as much as 50 percent. However, this option can cause the student more expenditure over the life of the loan if not thought about carefully.
One of the most important ways on getting out of student loan debt and any other debt is to make the payments faithfully. This can depend if the student want to eliminate the debt once and for all or not. Missing payments or making late payments will only increase the debt that the student already have. And so, not missing any monthly payments can help increase the chances of getting out of student loan debt easily and fast allowing the student to better plan for his or her own future.
