7 Ways to Reduce Your Student Loan Debt

No one wants to graduate with excessive student loan debt. Starting out in the job market is hard enough without having to worry about a mountain of student loans you have to pay back. That is why we have put together this helpful guide with seven tips on how you can reduce your student loan debt.

1. Realistically estimate your starting salary out of college. The costs you will be hit with once you graduate from college and start out in the real world can be daunting. Often, college graduates are hit especially hard with expenses because they have overestimated their starting salaries. Even for fields where higher incomes are the norm, you can expect that you will not be starting at that point right off the bat. You'll have to earn your way up. Find out the average starting salaries for graduates with your degree, and then budget accordingly.
2. Carefully select your alternative financial aid sources. When federal financial aid and other sources fall short of expenses, most students turn immediately to credit cards to cover the difference. Don't do this. Credit card interest rates are exorbitantly high. Credit cards were not meant for long-term borrowing, and you will end up paying much more than you should. Instead, seek out reasonable private student loans, such as what we offer on our site. The terms are more reasonable and payments will be deferred until graduation.
3. Consolidate carefully. Consolidation can save you a lot of money, but it largely depends on with whom and how you do it. Don't consolidate private student loans and federal loans together.it might end up costing you more money.
4. Expect accountability from your school. Recent investigations report that many schools artificially inflate the cost of tuition to dupe students and parents into thinking they are more prestigious than they really are. Don't tolerate this kind of behavior from your school.
5. Be vocal. Talk to members of Congress and your local representatives about student loans and the problems you're having with them. Congress has already begun slashing rates, so they are willing to listen and act.
6. Start or join an advocacy group for students. Fighting student loan debt is sometimes easier in numbers. Check out groups like the Project on Student Debt or the United States Student Association, which are student advocacy groups.
7. Start a business or get a job. One way to make a big dent in your student loan debt is to start your own business or at least get a part-time job during school. Starting your own business often means more money for you (but also more work) and will look great on your resume. If entrepreneurship doesn't appeal to you, look into part-time jobs.

If you have any questions about private student loans that have not been answered yet, please visit our frequently asked questions page.