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Just because your first student loan payment isn’t due until six months after graduation doesn't mean you have to wait until then to start tackling them. It’s wise to get started early because most debt relief strategies don’t discharge student loans, so falling behind isn’t an option. By making payments while still in school, you can establish financial security long before you enter the workforce. 

3 Tips for Paying Down Student Loans While Still in School 

1. Focus on the Interest 

Making standard student loan payments may seem overwhelming while still in school. Depending on how much you borrowed, they could amount to several hundred dollars per month. Until principal payments are due, though, just focus on covering the monthly interest that accrues. If you took out $10,000 at 5% interest, that's just $42 per month.

Paying down the interest while still in school could save you hundreds or even thousands because student loans are subject to interest capitalization. In other words, borrowers must pay interest on the interest. Debt relief experts will be the first to tell you capitalized interest is one of the biggest reasons people end up in over their heads. 

2. Work When You Can 

debt reliefAs a college student, you likely won’t be able to maintain a full-time job, especially if your program is demanding. However, see if you can fit a part-time or seasonal position in your schedule. Even if you only make a few thousand dollars a year this way, putting some or all of it toward your student loans will add up fast, especially over the course of four years. 

3. Find Ways to Be Frugal

Couponing may only save a little money at a time, but that also adds up when you’re buying discounted items that you would’ve purchased anyway. On the other hand, using a coupon for something non-essential will only hurt your budget.

To get started, download the discount apps for the stores you frequent most. All the biggest retailers have them. Other couponing and reward apps include Ibotta®, Grocery iQ®, RetailMeNot®, and Shopkick®. Then put the dollars you save toward your loan interest payments.

 

If you end up falling behind on student loans or other bills despite your best efforts, turn to Greg Dunn, Bankruptcy and Debt Relief Attorney, to explore your options. Based in Honolulu, this compassionate lawyer never judges clients for their struggles. Instead, he uses his decades of experience to help them devise practical solutions for taking back control of their finances. He’s handled more than 12,000 bankruptcy cases. To request a free consultation to discuss debt relief strategies, reach out on his website or call (808) 524-4529.

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