Old College Try: How To Manage And Overcome Student Loan Debt

The words “college” and “debt” go hand in hand. Anyone who has walked through a collegiate bookstore, ordered a textbook online or struggled through the student loan process can tell you emphatically that the college experience itself is just fine. It's what happens after you graduate that is a little more taxing. The amount of college debt in the United States is both staggering and surprising. Plenty of college graduates remain hopeful that their education won't fail them when it comes to landing a high paying job right out of school. But the job market and the subsequent salaries aren't running parallel with available jobs or meshing well with the amount of debt a recent graduate is carrying. Simple math tells you that if you're making $17 per hour and taking home about $800-900 every two weeks that a monthly student loan payment of that same amount is going to leave you much leftover for rent, cars or utilities and gas, respectively, for each of them. So how do you secure your financial future and save money with the prospect of a student loan payment looming large? The most straightforward path is understanding that student loan isn't going anywhere, anytime soon, and that interest rates are on your side (to a degree). You want to make sure you work out a payment that you can afford, even if it means adding to your loan term (remember low rates). You should focus on paying the principal amount first and foremost. The purpose of the lower monthly payment is, quite frankly, so that you don't miss a payment. No matter if you're talking about a credit card bill or student loan, missing a payment is the proverbial credit kiss of death. Creditors ding your score every time you miss a payment and get docked with a late fee as a result. Plenty of would be job seekers who aren't having much luck finding employment also look toward debt forbearance programs or consolidation. Steer clear of the latter. Once again, the interest rate on your student loan isn't high enough to justify consolidation; that should be left to that 20 percent department store card or the credit card with no points, rewards and a comparable interest rate. Looking at your student loan as more opportunity than albatross is the proper way to start your career path, but you also need to include some common sense coupled with prudent decision making regarding that loan.

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