You may have read in my previous article – or in countless
other news sources – that student loan debt is a major problem. It haunts people by forcing us to wait to
purchase a home, start a business, get married or pursue other major life
events. At the time, pursing that degree
seemed to be a good idea, but for some reason our careers post-degree may not
necessarily be measuring up.
According to the U.S.
Department of Education, education costs should be between
8-10% of our income. So how can we stop
drowning in payments?
Here are some tips for tackling student loan debt:
Step
One: Lay Out a Plan
Find your actual cost of living by reviewing how much you
spend per period, perhaps monthly or quarterly.
Go through your itemized periodic expenses and identify areas where you
can realistically save. Add the excess
savings to your student loan monthly payment amount.
Next, find out how much you owe in student loans and what
the terms are for your payments. Create
an ideal plan for paying off each loan, categorized either by interest rate,
loan amount, origination date, or some combination thereof.
Step
Two: Find Ways to Make Extra Payments
Look at your weekly schedule. Determine what time is
dedicated to work, school, volunteering or other responsibilities, and see
where you have extra time. When you know how much time you can allocate to
other activities, take the extra time and decide what you are willing to do. Do you have enough time to create a side
business, invest, side job or freelance?
Next, identify creative solutions that can help you maximize
your time and consolidate some of your goals.
For example, if community involvement is important to you, but you need
to pay your student loans, STARTNOO might
be a good option for you. With STARTNOO,
students and alumni can exchange services for payments towards their student
loans. It’s free – just help non-profit organizations
and payments go directly to your student loan accounts. The best part is that some of the listings
may relate to your profession.
So, for example, I could do accounting for a non-profit, and
doing this in my spare time pays off my student loans. The platform goes live in May 2016, but they
are currently wrapping up their test group, where test group users receive $500 paid
towards their student loans or tuition!
Step
Three: Act on It
Organization and planning are wonderful – but implementation
with action will bring the results you want.
Take your goals and make yourself accountable by 1) making your goals
public, 2) tracking your activities, or 3) working with an expert who can make
your dreams a reality.
As a Money Coach, I have seen first hand that accountability
is one of the biggest indicators of action.
Reward yourself as you reach various milestones in the journey – and
finally, enjoy the ride. The day that
all of your student loans are paid off will be a glorious accomplishment and I
cannot wait to congratulate you when that day comes!
What do you think about taking these first steps towards
eliminating your student loan debt? Please let me know by commenting in the
section below!
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