The average amount of student debt in the US is between $37,574 and $52,921. Tuition alone costs tens of thousands and can take decades, if not a lifetime, to pay off for many. Unfortunately, with inflation, the global economic crisis, and other factors, students continue to rack up debt for years, with no end in sight.
Whether you’re applying for a federal loan or a private loan to enroll at our completely online accredited university, here is how you can plan to repay your debt:
Start making regular payments as early as you can
You can get a headstart on paying educational loans by making regular payments early on. You can start during your deferment period and pay extra during your regular schedule, but make sure to discuss these options with your lender. The sooner you start, the less interest you’ll have to worry about.
Avoid extending repayment plans unnecessarily
If you can’t pay off your loans early, it’s okay. However, you should avoid extending repayment plans unless there’s a real emergency. Many federal and private loans offer extended and standard plans, and the latter is always better because you get done with it sooner and save on interest.
Work as you attend school for extra income to pay loans
You can also work as you attend school to generate extra income for your loan. An additional few hundred dollars a month can significantly take the load off. Working full-time as you study can be a lot. Instead, you might want to consider working freelance, taking on side gigs, or finding a part-time job. You can start paying back the loans you took out at the beginning of your academic career before the interest hits.
Not only can this income help you pay for your student loans, but it might also lessen the amount you need to take out. Indeed, it’s always better to walk away with the smallest amount of loan possible.
Additionally, some employers may pay your loans, but you must know their conditions and terms before choosing that option.
Pay off accumulated interest first and foremost
Many types of loans can be managed by paying interest first. This helps reduce the accrued interest and allows you to pay less overall. Whether you choose to pay interest first, remember that you need to prioritize loan repayments to avoid owing devastating amounts.
Paying educational loans is one of the biggest challenges of education today, but if you’re smart about your decisions, it gets easier over time. Look into financing alternatives at our online and fully accredited university in addition to applying for loans, and reach out to us if you have any concerns or queries regarding our online undergraduate certificate programs or degrees.
