Are you in your late-teens or early twenties? If answered yes, you're perhaps going through the toughest fiscal periods of your life, especially if you've recently graduated from college. An increasingly large number of graduates had to prioritize paying off their student loan debt over some other important milestones, as per reports by the American Institute of CPAs. Among those who have responded to the survey, 50% have already put off their car purchase, 30% of them have delayed purchasing their new home and 15% have put back their plans of marriage just because of the overwhelmingly large amount of debt that they carry.
College debt has gradually become a pressing issue that is affecting the mass of young graduates who are entering the work force but according to the statistics, the women are severely affected by the burgeoning student loan debt level in the grand financial picture. According to Forbes, the national average of student loan debt owed by a student who is just graduating is $20,000. In a recent report by the NACE or the National Association of Colleges and Employers, the average salaries for the graduated class of 2012 were annually $44,456. Don't you think that this sort of debt-to-income ratio of fiscal burden sends a chill down the spine of all those young men and women?
Overcoming the milestone – Ways in which you can repay your debt burden
It is undoubtedly a tough balancing act when you have to start a new life and also pay back huge amount of student loans in this tough financial environment. While there are many seniors who are still repaying their student loans, here are some tips that you can follow in order to avoid having the same fate. Check out the things that you can do to balance the competing demands of your dollars and yet find out a solution to your education debt.
- Know what you owe and how you owe: There are multiple types of student loans and chances are high that you've taken out more than one kind. Check the terms and conditions of the loans as different loans carry different options. While some student loans might offer payment deferment option some others might demand you to start paying the finance charges soon after you graduate. Get in touch with your lenders and find out all the vital facts.
- Find out about loan forgiveness options: Did you know that one of the great ways of tackling student loan debt is by looking for the loan forgiveness options, thanks to the Public Service Loan Forgiveness program. There are many programs through which you can have your student loan debt waived off if you work in certain professions like public interest medicine or law, military or even teaching.
- Watch out for debt consolidation: Consolidating your loans can easily reduce your monthly payment and this often comes as an attractive option for the cash-strapped young adults. But as debt consolidation extends the period throughout which you repay the debt, this consequentially leaves you saddled with debt for the next few decades. So, you should watch out before opting for federal loan consolidation. Get a direct debt consolidation loan from the US Department of Education that carries lower rates and that can translate into huge savings amount. You may also take advantage of the income based repayment plans.