Managing higher education student debt – Fxsad

Managing higher education student debt

Eyewitness News (WBRE/WYOU) — The average student loan debt for college graduates is about $37,000. But there are ways to successfully manage your finances without feeling overwhelmed.

With 62 percent of college graduates carrying student loan debt, higher education and debt seem to go hand in hand, and cause a lot of stress.

However, with interest rates on the rise, there are still ways to avoid large debts and reduce them if you save some.

Eyewitness News talked to a financial expert about what you need to know about student loans and credit card balances.

“It does concern me, but not to the point where I always worry about it,” said Hirali Patel of the University of Scranton.

Hirali Patel, 21, is a senior at the University of Scranton and when she graduates in May, she will have about $50,000 in student loan debt to pay off.

“The aim is to take it out of my salary when I start in the future,” Patel added.

When it comes to student loans, interest starts piling up on day one, which is why Amy Branning of People’s Security Bank & Trust advises young adults to budget wisely while in college.

Try to pay off that interest on student loans throughout your college career. If you can keep that up, when you get out of college your principal will be less and you’ll be able to pay it off faster. Trust.

Being frugal as a college student can help you stay within your budget. For example, buy used books, cook at home, live with roommates, and most importantly, have only one credit card.

While Patel has multiple credit cards, she pays off her balance in full each month, good financial advice Amy Browning strongly recommends.

“Since I’ve had a credit card for the last 2 or 3 years, I’ve had a good credit score, so if I buy a house I know I’ll need it in the future, so I’ll try to keep that.” Patel continued.

“If you can pay more, pay more, but definitely make at least monthly payments. You have a grace period of 7-10 days, but definitely pay before the 30 days are up. So it doesn’t affect your credit score,” Browning added.

In addition to making extra payments, another tip for paying down loan and credit card balances is to consolidate your multiple, high-interest loan and credit card debts. Lowers interest rates and monthly payments to make repayments more manageable.

Also, you can refinance. Convert your current federal and private student loans into one loan with less interest. Hopefully, with these tips, young adults will be able to complete their education without burdening themselves with heavy debt.

.

Leave a Comment