How to Pay Off Your Student Loans After You Get Your Degree
Though most agree that college is an enriching experience, tuition costs more than ever. The average student has about $26,000 of student loan debt by the time he graduates, and debts are not showing any sign of going down. If you’re in college or are about to begin classes, you should think about alternative ways to pay for tuition and start building a strategy for paying off your loans.
Get a Stable Income
After college, many graduates earn money by contracting or working odd jobs. While this is a great way to gain experience, uneven work may not bring home enough money to cover monthly student loan payments. To ensure that you have enough money to cover living expenses and student loan payments, it’s important to earn a stable income and live within your means.
Many students take out multiple kinds of student loans to cover their tuition—including federal loans and private bank loans. If you’re making multiple payments every month, you should consider consolidating your debt into one monthly payment. This won’t just make it easier to remember and repay your loan , but it will also help reduce the total amount you pay in interest.
Once it comes time to start repaying your student loan debt, your lender will suggest a monthly payment amount. You can choose to pay more than this amount if you have the means. In fact, increasing your monthly payment amount or making more frequent payments can help you pay off your principal balance much faster. The faster you pay off your balance, the less you have to pay in interest.
For help tackling your student loan debt, don’t hesitate to call GCS Credit Union at (618) 797-7993. We’re proud to serve anyone who lives, works, or studies in O’Fallon or elsewhere in Southwest Illinois. If you need a credit card, auto loan, or new checking account, visit our website to find out how we can serve you.