how to tackle student loan debt

How to Tackle Student Debt

Join our #CreditChat every Wednesday at 3 p.m. ET. This week, we talked about how to tackle student debt.

ex.pn/studentloan

http://www.experian.com/blogs/news/about/tackle-student-loans/

What should students know before taking a college loan?

#CreditChatWednesday | 3 p.m. ET


“Students should know how long it will take them to repay back that loan and whether it’ll be easily manageable

for them.”

- @SelfLender


“A private education loan can be a responsible way to fill the gap between the COA and funds you already have.”

- @SallieMae


“Students should know everything about how much money they owe, principal + interest, and terms of

repayment for student loans”

- @KOFETIME


“Only borrow what you need. Explore/research starting salary and payoff terms. Understand the actual

cost of degree. ”

- @GiftofCollege


“It’s not free money. Make sure you only borrow what you need and know how much your monthly payments

will be after school.”

- @CordiaGrad


“Understand the difference between subsidized and unsubsidized student

loans.”

- @Rod_Griffin

What are easy mistakes to make when applying for or taking out student loans?



“Do not rely on student loans alone. Get a part-time to cover as many costs

as possible.”

- Take Charge America@TCAsolutions


“Accepting the terms without understanding them. For private loans, make sure you know when you are going to

start payments.”

- @CordiaGrad


“Know the different terminology in the financial aid letter. Grants you

don’t have to pay back. Loans you do.”

- Writer Leah Ingram @suddenlyfrugal

“Failing to exhaust free money first. Gift aid such as grants and scholarships do not have to be paid back.”

- @SallieMae



“Students need to make sure they are using their loan appropriately. They should not be spending the money on

leisure activities.”

- @taynelawgroup

How can college students reduce the amount of loans they’ll need?



“Do your research: apply for scholarships and grants well before

applying to college. Work at least part-time while in school.”

- @ConsolidatedUS


“Pick a school you and your family can afford, (net of grants) 4 years at a pricey school may not be worth 25+

years of debt.”

- @CordiaGrad


“Choose your school carefully. You can borrow for a pricey university or get

the same degree (lower cost) at a state school.”

- Take Charge America@TCAsolutions


“According to ‘How America Pays’ 95% of families took at least one measure to make college more affordable.”

- @SallieMae


“Look at alternate funding options: scholarships, grants, financial aid.

Look early and apply to many.”

- @Kasasa

What tips do you have for college grads trying to figure out their finances?



“Seek out information! Talk to friends, family and trusted advisors for help

when you need it.”

- @nerdgrad


“Resist to the temptation to step-up your standard of living just because it’s your first real paycheck.”

- @CordiaGrad


“Learn to budget. Also, learn the difference between needs and wants. (Needs = food, housing, etc. Wants =

beer).”

- @wisebread


“College students should pull their credit report, track their spending,

and budget accordingly to figure out their finances.”

- @SelfLender


“The no.1 rule to financial success: spend less than you earn. Always keep track of what you spend.”

- @SallieMae


“Pay tuition with your loans. Save the rest for repayment or future

semesters later. Budget- tell your money where to go.”

- Jaymee @SmartWomanCan

How do you balance paying off student loan debt while trying to save and/or invest?



“Allocate a percentage of your paycheck to a savings account and

make it a line in your budget.”

- @care4yourfuture

“Discipline yourself to add to your savings every pay period - over and above your student loan payments.”

- @CordiaGrad



“Pay back your debts, but remember to pay yourself first, your future self will thank you when an emergency

happens!”

- @KOFETIME


“Build a budget and stick to it.”

- @SallieMae


“Come up with a realistic timeline and create a graduated savings plan.”

- Daniel Gamez @GamezLawFirm

What are some ways to pay off student loan faster?



“Make payments while still in college. If able, pay more than required each

month.”

- @AirForceFCU

“Refinance to lower your interest rate. Use the savings to shorten your term.”

- @CordiaGrad



“Many lenders have alternative payment programs for borrowers who

are unable to make payments.”

- ACA International @ACAIntl


“Pay more than the minimum each month. Paying even a little bit extra can go a long way toward paying off loans

faster.”

- @SallieMae


“Pay interest on your loans while you are in college or during your grace

period. It saves a lot of money in the long run.”

- @care4yourfuture

What should you do if you’re having trouble paying your student loans?



“If you’re having trouble making payments, don’t panic. Contact your

lender/collector for a solution.”


“Contact your lender to tell them. Reputable servicers will try to work with you. Don’t ignore the problem, it

won’t go away.”

- @CordiaGrad



“Consider downsizing, finding free housing with friends or family. Ask

for help. Find better-paying job. Take up a side hustle.”

- @MrsAmandaReed


“If you’re having financial challenges, don’t ignore them. At first sign of a difficulty, contact your lender.”

- @SallieMae


“Ask repayment options, yet lower monthly payments means more interest over the life of the loan.”

- @AirForceFCU

What are pros and cons of student loan consolidation programs?



“Pro: Can lower your interest rate, variable interest rates turns into a fixed interest

rate, and lower your monthly payments.Con: An original fee, forgoing other

repayment plan options, and losing perks from your current lender.”

- @care4yourfuture


“Pro: If you consolidate by refinancing with a private lender, you can both reduce your interest rate and simplify payments.Con: Consolidating in the federal program doesn’t reduce your

total monthly payment.”

- @CordiaGrad


“Pro: One payment at one interest rate, lower payments.

Con: Losing ‘grace’ period and lender benefits. Extending the repayment terms =

paying more overall.”

- @AirForceFCU

Any final tips for paying off student loan debt?



“Make it priority when you get your first paycheck. Taking steps to live

‘debt free’ is also a way of investing in your future.”

- Andie@moneyinmy30s


“Try to pay off your debts that have the highest interest rates first. Usually that means the priority is to pay down your

credit card.”

- @CordiaGrad


“Lenders and Collectors are there to assist you in the loan repayment process. Communication is key!”



“Create a plan to pay down your student loans, set a budget, and make sure your servicers have your up-to-date contact

information.”

- @SallieMae


“Know what you are signing up for and why, this decision could affect the

next 10 to 20 years of your life.”

- @care4yourfuture

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Check out all the resources and tips shared:

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http://www.experian.com/blogs/news/about/tackle-student-loans/

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how to tackle student loan debt

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