Business Magazine

How to Get Rid of Student Loan Debt

Posted on the 07 June 2011 by Classycareergirl @classycareer

How to Get Rid of Student Loan DebtIf you are thinking about college or grad school, you might be wondering how to eliminate student loan debt after graduation.  Lucky for us, Patricia Briggs asked if she could write an article to help us eliminate our student loan debt.  Patricia is a guest columnist, blogger, author for various websites and communities.  She loves to write articles during her free time about bankruptcy, investment opportunities and monetary policies.
Millions of students are relying on loans in order to pay for their educational expenses. After graduating, these students find it difficult to eliminate their overwhelming debts as the interest begins accruing on the principal balance. Here are some solutions for fresh graduates to avoid damaging their credit reports and to eradicate their student loan debt: 

  1. Formulate a debt repayment plan so that you can focus on accumulating some extra cash to eliminate your debts. You can prepare a list of the debts in descending order of the interest rate. You can use your extra income to pay off the high interest debts and make minimum payment on your other debts on the list. Once you pay off the highest interest rate debt then focus on paying the second highest on the list. But, you should remember that you will not succeed in paying off the debts unless you follow a budget.
  2. Negotiate with the creditors to lower the principal balance along with the interest rate. Try to convince your lenders to reduce the interest rate or monthly payment until you get a job. Be aware that a creditor might charge interest or a late fee on your owed amount.
  3. Enroll in a debt consolidation program if you need to manage multiple creditors. This will allow you to consolidate your bills in a single convenient monthly payment and it help you get out of debt. But, the success of the consolidation program depends on the type of your student loan, your income flow and your eagerness to maintain a financially disciplined life.

These are three important ways to eliminate your student loan debt effortlessly. If you have an insurmountable amount of debt, employ any of the above mentioned methods to lower your financial woes.

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Asking For a Raise- How to Get Paid!

    Managing your career effectively can be a challenge. It’s hard to know which career move you should make next, and what steps you should take to make more money. Read more

    By  Ncrimaldi
  • An Observation of Student Books

    This being graduation and recruiting season, I've seen a lot of student portfolios lately. Seriously, gobs of them. And this is generally what I'm seeing:Lots o... Read more

    By  Happygrc
  • Before You Shop, Find a Mortgage Loan!

    Before you start looking at homes, you want to have a good idea of how much you can buy. If you find a home that you love and then find out you can't qualify fo... Read more

    By  Homesmsp
  • Tips on Reducing Student Loans

    Tips Reducing Student Loans

    By, Patricia Briggs In the US, many (if not most!) students are forced to take out loans in order to manage their college expenses. Student loan debt... Read more

    By  Ncrimaldi
  • Processing Your Loan....

    Once you are preapproved and have found a house to buy, the process doesn't stop! After your purchase agreement is accepted, you will want to have an... Read more

    By  Homesmsp
  • How an Entrepreneur Can ‘Get Lucky’ in a Startup

    Entrepreneur ‘Get Lucky’ Startup

    If you have had some success in a business, I’m sure you bristle just like I do when someone says “You were just lucky…” I’m a strong believer that we all make... Read more

    By  Martin Zwilling
  • US Debt Ceiling: Mum, I’m Confused

    Debt Ceiling: Mum, Confused

    Will the Republicans and Democrats reach a compromise in the debt ceiling talks? Or will they all just slope off to the pub? Let's hope not. Read more

    By  Periscope