Tips to Paying off Student Loans!

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Being a recent college student can be very stressful. Maybe even more stressful than being in college! Between finding a good steady job, paying all the bills, AND paying your student loans I know it can be really difficult to stay afloat. When you graduate college, most student loans taken out through the government have a 6 month grace period until the payback period begins. Right out of college with all the other bills coming in, it may seem that the best idea is to not start paying your student loans until you actually HAVE to, but really it isn't. Getting a head start on your loans can help you a TON in the long run.

Just because you aren't “required” to start paying the bill, it doesn't mean that interest isn't accumulating on the totals. Interest can build up fast on loans, especially if the balances are high. So let’s go over a couple quick tips that can help you get a head start on those loans!

• Tip #1: Skip the morning coffee run to Starbucks or McDonald’s everyday, and instead set that money aside each week for one month. On average a cup of coffee ranges from $2-$5, so meeting in the middle, let’s say each cup costs $3.50. Having a cup of coffee at least five times a week, $3.50 * 5= $17.50. Now if we get coffee five times a week for one month that can equal approximately $70! Seventy dollars may not seem like a lot, but that’s $70 less you have to pay interest on! Skipping some of your most costly habits may seem like a breeze so why not challenge yourself to quit multiple habits and save even more money! 

• Tip #2: Take a look into consolidation programs available. By consolidating your loans it allows you to have a lower interest rate and only have ONE payment, versus the five or six you may have for each loan. There are many different financial institutions, as well as other companies who offer consolidation programs. Be smart about it though, really look into each program and their benefits. You want to make sure you are getting a BETTER deal than what you currently have, not vise versa. 

There are many other game plans and options to consider when paying off your student loans, but these two options are ones that ANYONE can tackle. Also keep in mind, if you need somewhere to keep any of these savings HCCU is always here to help!

Post by: Emily P.