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As of 2018, student loan debt in the U.S. totaled a staggering $1.5 trillion. For recent college graduates in entry-level positions, their amount of debt often feels overwhelming. To prevent future financial strife, take these debt relief steps.

3 Student Loan Tips for Recent College Graduates

1. Increase Monthly Payments

Making the minimum payment on your loan means a portion of your money will go toward interest. Depending on your interest rate, this can lengthen the loan term for years to come. Whenever possible, increase the amount you pay on a monthly basis, so you can start paying down the principal. For extra convenience, create an auto payment plan with the extra money included.

2. Use Cash Influxes Wisely

debt reliefIf you’re lucky enough to win the lottery or receive an inheritance, use this money carefully. While you may be tempted to go on a spending spree or take a vacation, you could put these funds towards your student loans. Even using your tax refund to chip away at the principal will make a difference, especially when you do it every year.

3. Consider Consolidation or Refinancing

You have a few debt relief options for student loans, such as consolidation and refinancing. When you have multiple loans, consolidation allows you to pay them off with a single new one, which helps lower interest payments. With refinancing, you can replace an existing loan with one that has a lower interest rate, so more money will go toward the principal. 

 

Greg Dunn, Bankruptcy and Debt Relief Attorney, knows recent graduates can be perplexed by their student loans. That’s why this Honolulu, HI, debt attorney helps clients find the best solutions for their financial issues. With more than two decades of experience, he offers insight into refinancing, consolidation, and bankruptcy. Schedule a consultation today by calling (808) 524-4529. You can also learn more about his services online.

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