Student loans continue to be a financial burden for most millennials. It can be extremely frustrating and overwhelming to manage your loans right away, especially after graduation. According to Mark Kantrowitz, a publisher and vice president of strategy for Cappex.com, the average student debt for 2016 graduates is a record $37,173, up 6.05% from last year’s level. This is definitely not something millennials want to hear. Let’s take a look at three ways you can expedite the process and get you debt free.
It might be best for you to start looking for a part-time job while you are in college. It can benefit you in multiple ways. First, you will be able to put aside some money each month that will help decrease your compiling debt. Having a part-time job will also allow you to gain some valuable working experience that will benefit you in the future. According to Clayton Shearer, a wealth manager at A&I Financial Services in Englewood, Colorado,
“if a student can put away $1,000 a month, that’s $12,000 (a year) less in student loans and not having to take that money out in loans — a big savings”
Now, how can you disagree with him? Get started now on looking for a job!
When you graduate college and get your first full-time job, you’ll finally start seeing consistent income. This influx of cash may certainly be enough to lead to you spending money on unnecessary things. It may be in your best interest, in the beginning, to cut down on some expensive items and put that money towards your student loans. It is absolutely a sacrifice, but it’s better to do it sooner rather than later. (Especially when “later” entails the accumulation of even more unnecessary debt.) Trust me, you will be thanking yourself later.
I definitely recommend you developing a plan (budget) after you graduate college. It can be a great way to put things in order and keep you organized. This plan should allow you to understand what you should and shouldn’t spend money on, in order for you to cut down on your debt. Budgeting apps, which I wrote about in my recent blog post can be a good way to help you get started in the right direction.