Loan Inducing: Paying Back Student Loan Debt Should Be Priority Despite Rates

The conflicting arguments as it relates to debt and student loans centers on the interest rate versus the monthly payment and how someone can manage their budget accordingly. Those who remain steadfast that the student loan isn't a priority pertaining to paying off debt focus their attention on the typical low interest rates in comparison to other potential debt you might have. Credit cards immediately come to mind since they'll typically have a 10% interest rate at minimum, while others can go as high as 30%. When it comes to student loans, what really needs discussed, however, is the monthly payment that is factored into your budget, and, quite frankly, if that total amount is large enough to wreak havoc on trying to save money or handle your additional expenses. Plenty of would be graduates spend their fair share of borrowed money on college, counting books, tuition and housing. The result often is a monthly student loan payment that can mirror the total cost of a mortgage payment, leaving you with very little wiggle room to pay for other pertinent items like food, gas, rent and even a car payment. And with that, the poor college student moniker continues beyond the four years of schooling. Refinancing isn't an option, so the better option is throwing as much time, effort and money at your student loan as possible. What you don't want to do is fall in the trap of deferring your loan (unless it is absolutely necessary) or going on a payment plan that has you paying a fraction of your monthly payment, since that total amount is only you paying back your interest on the loan for the time being. The goal is to treat the student loan the same way you'd approach a credit card, particularly since the school loan carries with it a monumental monthly payment. Like any debt, student loans come with sacrificing to get that burden off your back faster than 10-15 years, the average time a student loan is repaid. You may want to cut out expenses like eating out at restaurants, cell phone data plans or cable television when Netflix, Hulu or streaming will do the same for a fraction of the cost. Any extra income you have at the end of the month should be put toward the student loan. You have to remember that the student loan won't go away quietly or quickly unless you put some real effort into paying it down.