How to Avoid Lost Money in your Student Loans

Do you find it hard to repay your student loans? Have you lost money in trying to do so? Having student loans doesn’t have to be a nightmare on Elm Street. You need to wake up and face the music. You have lost money and you find it difficult to pay back your loans. Perhaps, it’s not your student loans that should be put to blame. You may be living an extravagant lifestyle on a minimum pay check. There are plenty of things you can do and it all comes down to: A Total Financial Makeover!

Know that you alone are responsible for the so-called STRESS of your student life. It doesn’t have to be this way, everyday. You can definitely do something about it if you honestly know where you stand right now with your finances. Learn to make a serious planning of your budget – one which you will reinforce upon yourself.

Seven Ways to Avoid Lost Money in College

1. Prioritize

Is it necessary to have a cup of your flavored Macchiato each day to prep you up? Why not turn to apples instead and save yourself a few bucks? By changing your lifestyle and making it fit your monthly allowance or income, you avoid lost money on unnecessary stuff.

2. Work

Unless you’re an heir or heiress to a multi-billion dollar industry, you have to flex those muscles and work. You still need time for your studies, so try looking for a part-time job that will help you pay your bills on time. Care for a little sacrifice? Try working on spring breaks, summer, or even on holidays.

3. Ditch the Card

If you have a shopaholic attitude, it’s high time to ditch those shiny plastics for good. Always try paying in cash so you won’t be tempted to shop ’til you drop. You may not realize that your credit cards are all maxed out. That spells T-R-O-U-B-L-E!

4. Mix It!

If you are already out of school and you find it simply hard to track all those student loans you have made, try talking to your lenders and do a student loan consolidation. By mixing your loans into one, you can have lower monthly fees with longer repayment terms. Just keep in mind not to mix your federal loans with private loans.

5. Go Jobless?

This doesn’t mean for life. You may apply for an Unemployed Deferment which gives you a total of three years bonus, where the federal government will be the one to pay for the interest of your subsidized Stafford loans.

6. Be Humble

If you are truly experiencing tough finances, don’t be too shy about it. Talk to your lender. You can be given an Economic Hardship Deferment for a certain period of time. Don’t ignore your school as well, since they have emergency funds catered to students needing help.

7. Go for F

F – for Forbearance, which should be your last option. Contact your lender and state why you have a hard time repaying your loans. This is a better option than having a student loan default.

At the end of the day, you don’t really have to deal with lost money if you just keep track of your finances. Make a list of your daily expenses to give you a good idea on how much money is spent and how much you have saved. You’ll be truly amazed with the results. Practice makes perfect, so start that saving habit… NOW!

READINGS:

http://www.nytimes.com/2009/04/18/your-money/student-loans/18student.html?_r=1

http://articles.moneycentral.msn.com/CollegeAndFamily/CutCollegeCosts/repaying-student-loans-gets-easier.aspx

http://moneyfor20s.about.com/od/managingyourstudentloans/tp/studentloanpymnts.htm

http://www.studentdebtsrelief.com/blog/student-loan-debt-advice-tips-to-avoid-future-nightmares/