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5 More Tips for Gen Y to Manage Student Loan Debt

Young GraduatesThis is a guest post by Stewart Bradley, following up on his post last week. Stewart is a contributory writer associated with the Debt Consolidation Care Community and this time he has discussed about some more points for gen Y to operate student loan to secure financial status.

Saving money is unmistakably a smart step for better future and the young generation or the gen Y is not ignorant of it. The young people know that saving money is important, but they may feel perplexed about how they must start saving. The gen Y may kick-start their savings strategy with the student loans. Well, student loans are almost inevitable for higher studies these days. Gen Y must be very cautious while choosing the proper student loan. If they’ll choose suitable loan terms and payment plan, then the loan payment will be much more hassle-free.

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If you’re a part of the “generation young”, then through this article you can find out 5 effective personal finance tips for your student loan. Follow these tips and ensure a secure financial future:

  1. Follow an on-time payment regime: Remember there can be nothing worse than accumulated debts for your financial future. Any kind of debt including the student loan debts come up with interest rates charged on them. If you’ll delay paying your loan payments, then the loan amount may keep growing with the time. So, you must be aware of the payment deadlines and try not to miss them.
  2. Consolidate multiple student loans into single monthly payment: Yes, consolidation works like wonders for multiple student loans. By consolidating your various student loans you may reduce the interest rates considerably. Reduced interest rates will guarantee you good savings. So you get to save considerably along with paying off your student loan fast.
  3. Try work-study programs and scholarships: Many colleges offer this facility to students. You may do part-time jobs and study simultaneously. You may continue the expenses for education yourself. If you have taken a large amount as student loan, then you may even start saving for your loan payment too. This will make the road smoother for you. You may even ask for scholarship or grants from the college authorities. This will be beneficial for your higher studies.
  4. Be wise with your choice of student loan: Always be careful while choosing the student loan terms. Check out the interest rate and the payment terms thoroughly. Don’t opt for a loan which is beyond your affordability limit. If you borrow an amount which surpasses your limit, then you’ll face troubles during payment. So, it’s better to decide upon the loan amount carefully for utter convenience.
  5. Bank upon federal student loans: If you want ultimate safety with your student loan, then nothing can be better than federal student loans. Do proper research about the available federal student loans. Check the government websites for information. Know all the important details and then finalize the best option for yourself.

The federal government comes up with better options for student education frequently. These include the rate modifications and the payment adjustments. Follow the changing trends carefully and pick out the best possible option. If you’re already struggling to pay off student loans, then you must be doubly careful during your payment. If you’re facing problems with loan payments, then talk with your creditors. You may get some assistance from the creditors and that may save the situation for you.

Debts and unpaid loans are not at all a good thing for a person’s finances. For a safe and sound financial future it’s better to avoid debts. The gen Y may start taking care of their student loan as early as possible for better financial future and utter peace of mind.

3 Responses to 5 More Tips for Gen Y to Manage Student Loan Debt

  1. Thankfully I didn’t have to take out any private loans for school. Making sure you know your rates before you sign up for the loans is really important. Work study is also a good idea. I did various work study jobs during college and actually enjoyed them (photo lab, student volunteer advisor etc.).

    • Gen Y Finance Journey

      I didn’t have any loans either, which is why I’m always grateful for guest posts on them! I did work in a pysch lab for a couple years, and I know some of the other students working there were on work study programs. There are certainly a lot of opportunities for enriching work that can help you pay your way, especially at larger universities where practically every professor is looking for research assistants.

  2. I wish I would have applied for more scholarships…but alas, I paid with mostly loan money. Consolidation did help me after I was done with school…one payment at one low interest rate.

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