6 Insider Secrets for Eliminating Student Debt Post-Graduation

For those aspiring college students hoping to advance their careers and boost their earning potential tenfold, student debt is a necessary evil. By taking two steps back financially, college graduates can sprint ahead of their high-school-educated counterparts. Unfortunately, taking the gamble and funneling thousands of dollars into your education in hopes of receiving a job offer in your desired field may negatively impact your financial picture and physical alike. Because nothing comes without a price, deteriorating economic stability may be an undergraduate’s inevitable doom. 

Not only do student loans financial burden bachelor’s degree holders in-the-making, but this debilitating student debt can also jeopardize first-year students’ and recent graduates’ mental and physical well-being. Multiple studies have reported that skyrocketing student loan debt is often associated with higher stress levels and increased susceptibility to depression episodes, consuming anxiety, and compromised psychological functioning. 

Since our mental well-being plays a vital role in our physical well-being, it’s hardly surprising to find out that experts have linked mounting debt with elevated blood pressure, which can lead to hypertension in the long-term. 

As college tuition costs steadily rise, so has the national student loan debt average, which now totals $30,000. With these national averages in mind, countless college students now struggle to keep their heads above water and stay up-to-date on monthly loan payments, financially derailing the lives of lower-income undergraduates. 

If your student loan payment is past due 270 days or more, the IRIS can seize money from your tax returns and garnish your income to pay down your loan balance. Should the IRIS step in, your credit score can take a massive hit, negatively impacting large transactions requiring credit such as mortgage payments or vehicle purchases. 

Student loan debt can rob college students or recent graduates of their sense of independence if those sinking in student debt have to move back home to save money or fail to secure a job due to a poor credit and payment history in a background check. 

If you want to avoid the hassle and stress of student loan debt, here are some tips to help you pay off your balance after graduation. 

Stay Ahead of the Game (and avoid procrastination at all costs) 

The best defense is a good offense, so start tackling your student loan debt while you’re still in college. Scholarships, grants, and FAFSA are a great way to cut down on the cost of college. Luckily, there are many scholarship search tools available on the internet, designed to connect you with scholarship opportunities that meet your needs and are compatible with your credentials. 

Plan to meet with an advisor who can help you fill out any necessary forms and can offer advice on your class schedule. After all, you don’t want to waste money on a class that isn’t mandatory. If possible, apply for flexible job opportunities that will work around your back-to-back class schedule. That way, you can gradually lower your loan balance without your diet consisting of dollar-menu favorites exclusively. 

Pick the Highest Monthly Payment you can Realistically Afford

Choosing a loan repayment option with a lower monthly payment may seem appealing, but it has a few downfalls that can make paying off your loan more challenging. Lower payments extend the amount of time spent paying off your loan and spikes the amount of interest you’ll pay. 

By contrast, choosing a higher monthly payment means you’ll pay your loan off more quickly, as you’ll put more money towards the principal balance. 

Set up Automatic Payments

Some lenders will offer a discounted interest rate if you’re willing to sign up for automatic payments, which provides lenders with added peace of mind and scratches payment delays off their list of concerns. 

As a bonus, automatic payments are more efficient for you since you won’t have to worry about remembering to transfer money every month. A little discounted interest goes a long way over the term of your loan and could potentially save you hundreds or thousands of dollars. 

Pay More Than Your Minimum Payment

When you achieve financial security, plan on paying more than your minimum payment amount. Diligently setting aside additional income to put toward your loan balance will help you pay down this five-digit figure in a snap. Reducing your principal balance will also decrease the amount of total interest you pay, saving you money in the long run.

Look for a Job With Student Loan Assistance Programs

Once you’re out of college and begin hunting for a job, pay special attention to employers that offer student loan assistance. Some employers will offer student loan assistance as part of their benefits package to entice new hires. 

Student loan assistance can help pay down your balance, given that you meet the specific qualifications set by your employer. If the qualifications aren’t listed, touch base with someone in HR before sending in your application.

See if you Qualify for Public Service Loan Forgiveness

Public service loan forgiveness is offered to qualifying individuals that work for the government or specific non-profits. You must be a full-time employee and only certain loans and payment types are accepted. However, after a set amount of payments, your student loans will be forgiven. 

If you plan on working for a non-profit or government organization after graduating, look into the requirements of public service loan forgiveness and choose your loan types and payment plans accordingly to reap the most benefits. 

Final Thoughts

Don’t allow student loan debt to engulf you in feelings of anxiety or depression. Instead, retaliate against this monkey riding fare-free on your back by reducing your loan balance one payment at a time. By adopting a proactive approach, you can invest in property, splurge on luxury cars, and free yourself from the dark financial cloud hanging over your head.