Although we know that loan payments typically don’t commence until six months after graduation, it can’t hurt to start payment early. If you have unsubsidized student loans that accrue interest, or loans that have the high-interest rates, you may want to consider setting aside a little bit of cash each month to start paying them down ahead of time. That way when you leave school, you are positioned better financially. Here are some tips to start chipping away at them.
Learn How to Budget
This may seem like a no brainer, but many people still do not want to budget. A lot of us feel that budgeting limits our fun, or is just another task we have to worry about on top of school work and other daily efforts. However, budgeting can not only help you start paying down your student loans early, but it might just allow you to save more money for other things.
Personally, I wish I started budgeting earlier in my life. Not only do I have more control over where my money is going, but it allows me to check myself from impulse buying or spending too much with friends on the weekends. If you are unsure of budgeting, read our other article that details how it can benefit your financial future.
Finding Extra Work
If you find that even after budgeting your money that you are still not making enough to make payments, then maybe you should consider seeking a side hustle or a paid internship. When I was in school, I did not take full advantage of my school’s career center, nor did I seek paid internships. Not only can it put a little more cash in your pocket, getting something that is relevant in the industry you want to go into after you graduate will give you a leg up on your peers. Once you have your degree, the next battle will be getting experience. This can be a great opportunity to kill two birds with one stone.
Setting Up Payments
When you are racing from school, to work, to events with friends and family, it can be difficult to stay on top of loan payments. That is why you should figure out if you already don’t know, who your loan servicer is so that you can set up automatic payments. Doing so will make sure that you follow through with your plans to make a certain payment, no matter the amount you decide you can afford, each month. At the end of the day, graduating with less debt, as well as developing invaluable budgeting and debt management skills earlier rather than later will only benefit you in the long run.