Five Ways to Get Out

of Student Loan Debt

Created by Matt Sapaula

Treat the loan like a mortgage

If you can afford to do so make larger

payments and treat the loan like a

mortgage. By making larger payments,

you will reduce the principal more

quickly, which will result in lower

interest charge. Another path that you

could take is by paying every two

weeks instead of once a month. Either

way you choose to pay, going down one

of these paths will significantly reduce

the amount of time that you will be

paying back the loan for.

Create a plan

Ideally you should be creating a

three to five year plan. Sit down one

day and look at your finances. Plan

out exactly how much you will pay

each month and make sure you

stick to your plan! Know how much

you make and see if you can cut

costs from somewhere else until you

pay off your loan. Having a plan can

really help you pay off your loan

faster than if you hadn’t sat down

and looked at your finances.

While in college start a business

Earning money while still in college is a great way to stay

ahead of your debt because you save money to begin repaying

your loans as soon as you graduate. Starting a business in

school something that is very easy to do, as many schools have

programs that help students if they want to start a business.

There are also organizations that specifically help students

who want to start their own company. There are many people

who started businesses while in college like Mark Zuckerberg

and Michael Dell.

Establish a fund

If your job allows you to do automatic

deposits, do it! Having money

automatically put into your bank

account is forced savings. It enables

you to set aside money instead of

immediately spending it on

nonessentials. To remind yourself not

to touch this money, make sure this

account is strictly for paying off your

loan. If possible, keep your money in

the account for as long as possible and

allow it to gather interest. Then make

a large payment towards your loan.

Student loan debt relief programs

If you call your state’s local government you can see what

types of plans they have available to help graduates pay off

their student loan debts. However, this process could take a

while and involve a great deal of paperwork. However, if you

have the time to deal with it it’s definitely a great path to

explore. Another option is checking out my company,

MoneySmartGuy. You can give us a call and see if you are

eligible for any student loan debt relief programs that we

can help you navigate.