College May be a Blast, but Paying College Loans Can be a Bust

College May be a Blast, but Paying College Loans Can be a Bust

College May be a Blast, but Paying College Loans Can be a BustWe’ve all heard it said, “College is the best time of your life…” but for those who face debt from student loans, the “good times” may be over all too quickly. With a mountain of $30,000, $40,000 (or more) college loan debt looming out ahead of them, graduates often go from being excited about their accomplishment to feeling disillusioned as they look at the steep uphill climb of paying off that debt.

 

It’s all too easy to begin making your minimum payment and end up on auto-pilot, treating your student loan bill like your cellphone bill or rent payment. However, you might be leaving money on the table by using the loan company’s bill pay service.

 Here’s some mountain climbing advice in order to make paying college loan debt from a position of financial “fitness.”

 

1. Plan ahead! You might not be able to pay off your student loans while you’re in college, but you can take proactive steps while you’re still in school to make your life easier when the time to start paying comes. Setting up automatic savings account transfers will allow you to put away a little bit each month from your student work or part-time job. You can use that money once you’re out of school to make a big first payment. It’ll really take the sting out of the debt load and get you started on the right foot. Your discipline will pay off…literally!

 

2. Your student loan provider is a business, and they’re out to make money for lenders, that means keeping you paying the minimum amount for as long as possible. They want you to pay the “amount due” every month via their system. It’s more profitable for them that way. You can get the advantage back by setting up automatic bill pay. When you do, you can designate an amount of your choosing to be paid to the lender every month. You can pay your bill back at your own pace and save some money on overall interest while you’re at it! As a bonus, you can often get around nuisances like “technology fees” with automatic bill payment.

 

3. College is about the journey, not the destination. If your journey was a longer one than usual, you may have debt from several places. You may have used your credit card to finance your living expenses or taken out un-subsidized loans from private lenders. It might be time to consider refinancing or consolidating. You might be able to lower your interest rate and simplify your financial life at the same time. Gain advice on budgeting and make a road map to scale your mountain and create a truly debt-free future.

 

PrimeWay can help you climb “Debt Mountain” in more ways than you might realize, and save you money in the process. Make an appointment with a financial representative today and learn about your options. You’ll be glad you did.

 

Before long you’ll be looking at the view from the top!