Student Loan Dodgers

Student borrowers who develop a repayment strategy stand a better chance of getting out of debt and staying out of debt than those who don’t. As you accumulate debt in college, developing a financial strategy is one of the best things you can do for yourself.

Repaying $30,000, $40,000 or even more student loan debt can seem like a daunting task, It can be done, however, and student borrowers can learn some invaluable lifetime lessons while they repay their student loans.

While you’re in college, try to minimize the amount of borrowing you do. This may mean cutting a lot of corners on your expenses. Living expenses are the hardest to budget for, since they’re the least predictable. Develop healthy spending (and savings) habits while you’re in college. Avoid “deficit spending” on credit cards and budget religiously.

Once you’re out of college and have joined the world of work, employ additional strategies to reduce the overall amount of your student loan repayment. Consider student loan consolidation, making additional payments, and taking advantage of any incentive that lowers your monthly interest rate, like automatic payment plans, and on-time payment plan incentives.

Once you begin working, you’ll be tempted to take on additional debt. Don’t! Determine exactly what you’re willing to borrow for and what you’re not. Big ticket items, like houses and cars probably qualify. These loans are usually fixed interest rate loans and take into account your ability to repay them with regard to the rest of your debt. Don’t borrow for vacations, holiday gift-giving, luxury items like boats or second houses until you’ve paid off your student loans.

Get into the habit of making cash payments for everything. Also develop a savings plan that will help you make a cushion in case you lose your job, or encounter unexpected expenses.