college loan debt  In my last post I talked about how college was one of the most rewarding experiences in my life but it also left me with a fair amount of debt. I realized that it doesn’t take much to accumulate debt, especially when your income is next to nothing. It also doesn’t take long to become despondent when you see your personal finances dip further and further into the red. There is hope! I have created a list of four tips can be useful in helping you start to erase your college debt!

 1. The first thing you need to do is discover how many loans you have. If you live in the United States log onto the Website for the National Student Loan Data System found at www.nslds.ed.gov. There’s a lot of important information at this site that will show how much you owe and from whom. Before you can review the details at the NSLDS you will need to obtain a four-digit PIN from the Department of Education located at www.pin.ed.gov.

 2. Consolidate your College Debt. This is very important. It will help eliminate multiple payments each month and lower the interest rate. It’s easy lose track of your budget if you are paying off four or five different loans.

 3. Renegotiate the rate and term your of loan: It’s a fairly simple formula that the longer you are paying off your debt, the more interest you will pay in the long run. It may not be feasible for you to pay it all off in one or two years but the more quickly you do so, the less interest you will pay on your college debt in the long run – even if it is at a higher interest rate.

$20,000 at 7% for 10 years equals $7, 866 in interest.

$20,000 at 13% for 5 years equals $7, 304 in interest.

 

I found a great free resource that will help you determine how much you can afford to pay and how to pay it off as quickly as possible.

http://www.finaid.org/calculators/

 4. Don’t miss any payments. Ever. This is probably one of the most important pieces of advice I can give. Not only will missing a payment damage your credit rating but the penalties will add up quickly. Chances are your college debt won’t be the only loan you have in your life and you’re going to need a quality credit rating for other major purchases such as house or a car or for that much deserved vacation. That’s why it’s important to negotiate an amount that is manageable so you can make every single payment when it is due and not get in over your head when other expense’s come your way.

   These four tips may seem simple enough but sometimes it’s easy to make mistakes, especially when you are busy at your brand new job. Take a day as soon as you can to start with these tips. Most financial institutions are now open six days a week so it is important that you take the time to fast track your financial situation. I challenge you to start with these steps this week. You would be surprised how much more money you will have by the end of next month if you take care of it now. Good luck eliminating your college debt and be sure to save a few dollars for that beautiful new glass frame for your diploma.

   So tell me about you. If you are currently paying off your college debt or have already done so, make a comment about this post. Perhaps you know of another simple way that will help someone in need of advice.

 Bye for now!

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