5 Tips To Help 20-Somethings Pay Off Their Student Loan Debt

Career College Central Summary:

  • It's a tough balancing act — starting a life, and perhaps a family, while at the same time paying back heavy student loans in one of the most challenging job environments in decades. Let's take a look at five things you can do to balance all the competing demands on your money and still find a solution for your educational debt.
  • 1. Know What You Owe — and How You Owe It

-You need to know the terms under which you'll have to pay your loans back. Some loans offer payment deferment options or interest subsidies, while others start the finance-charge clock running as soon as you graduate or require immediate monthly payments. 

  • 2. Find Out About Forgiveness

-Thanks to the Public Service Loan Forgiveness program and similar options, many borrowers can have student loan debt forgiven if they qualify by working in certain professions, including teaching, public-interest law or medicine, or the military.

  • 3. Get Your Money's Worth From Graduate School

-If you're considering a graduate degree, be sure to closely consider the extra costs of years of additional education and compare them against the potential benefits.

  • 4. Be Careful With Consolidation

-Consolidating your loans can reduce your monthly payment, which is attractive to cash-strapped 20-somethings. But it also extends the period over which you're repaying those loans, potentially leaving you saddled with debt for decades

  • 5. Help Your Own Kids Out Early

-With tax-advantaged 529 plans and Coverdell Education Savings Accounts, you can put money aside and have it grow tax-free for use on educational expenses. 

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