7 Ways to Reduce Your Student Loan Debt

Expensive student loans put an extra burden on students while they pursue higher education. It means you are starting life with debt, and paying off student loans will keep them restricted from achieving their life goals.

If you can’t pay, it is impossible to get rid of them. Defaulting on these loans can significantly affect your credit score. Here are seven effective ways to reduce your student loan debt. Read on!

1. Apply for scholarships

Scholarships provide you an opportunity to get free money from your college or university. It is important to search for scholarships and apply them so that you pay less in tuition and take on less debt in loans. There are various ways to find scholarships, such as visiting the financial aid department, looking online, and checking your college website portal.

2. Meet your advisor regularly

Make sure you meet your faculty advisor and discuss your college courses. Your faculty advisor will help you choose the right course or subjects. If you take a class, which doesn’t count towards the degree, then you are wasting a lot of money.

So, it is important to avoid unnecessary classes and take those that are right for you. Some subjects are not only expensive but do not go in line with your degree, which means you will waste your time and increase your debt. Therefore, before the semester starts, you must discuss taking subjects with your faculty advisor.

3. Opt for affordable housing

The best way to avoid student loan debts is to live with your parents. While you may miss some of the college experience, it is worth staying with your parents if you want to save thousands of dollars.

Similarly, you can buy an apartment with two rooms and let other students live with you. It is a great way to divide the rent. For example, if the rent is $500 and you let in four students as roommates, you will pay $100.

4. Cut your bills

Your ultimate objective is to get a degree with high grades so that you can get a decent job and live a standard life. For now, sacrifice your other activities, such as paying for cable, watching TV in the student lounge, or streaming shows on Netflix.

Reduce your cell phone monthly plan. Sell your car and use that money to pay off your college debt. If your college is nearby, you can use a bike or simply walk to reach your college. Do whatever you can to cut your bills.

5. Use campus resources

Instead of spending money on buying a new laptop or printing documents at the bookshop, you can use a college laboratory computer and printer. Also, stop going to the gym or fitness center because you can workout at your college gym, which is most of the time free of cost.

6. Start a part-time college job

Many colleges offer part-time job opportunities to hard-working students. For example, if you have good computer skills, your college will hire you for a data-entry job and pay you good money.

We recommend you not to take a salary and instead ask your college staff to pay off your student loan debt. So, this is a great way to increase your potential of earning and paying off your loan debt simultaneously.

7. Avoid credit cards

Credit cards are a disaster for everyone, including students. Imagine you already suffer from high student loan debt, and you use credit cards to pay other expenses, such as buying a new laptop, an air conditioner for your rented room, etc. Credit cards come with higher fees and interest rates as well as they increase your debt. So, avoid them completely to reduce the burden on your shoulders.

Next: 5 Ways to Keep Your Credit Score When You Retire

Thomas Moore is a proud American with a Bachelors Degree in Business Administration from the University of San Diego. He has been in the financial industry for many years holding numerous licenses in multiple states. He currently helps operate cashkingco.com and is our resident expert on all things finance and a great writer. LinkedIn Profile