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The Best Ways to Payoff Your Student Loans and Debt

Tracy is a freelance writer. In his articles, he shares ideas and strategies on how to save money and to keep a good budget.


College students can become debt-free during this economy even though they think otherwise. For recent graduates, students getting ready to graduate from college know they have to pay back thousands of dollars. Borrowing from private companies or banks, especially from the State or Federal government, is having to do a minimal payment at most. In fact, most of these lenders tell the borrowers to repay within six months right after they graduate. For some students, there's alternatives to this repayment plan, though if they don't land their dream job right after graduating.

Steps to being debt free; to prepare for financial decisions

One thing to do, if you haven't already, is save $100 per month. In a year, that's $1,200, in 2 years plus the interest which accrues while it sits there. In 4 years that's between $4,800-$9,600 because of interest. In fact, some of the solutions a student can do to pay back is allowing their savings to sit at credit unions for instance.

Facing challenges in today's economy can be ignored but, this is the last thing a student who received loans should do. The thousands of dollars students have to pay back will not go unnoticed. Repaying back student loans will have a tremendous amount of weight off their shoulders once they begin the repayment process.

Paying back the minimal or $10 a month to start out is better than $0. It's not hard to gather the paperwork together online either. Avoiding it will not make the repayment plan go away either. In fact, some of the college student loans will keep you working; one great tip is that if you do work to pay for your college student debts, then paying anything is something.

One can pay monthly, weekly, or per pay period. If you have a part-time job, paying at least $10 a week, again, will add up in the long run. If you feel that you can save this amount, then do it. $40 per month will reduce the loan's principal. When a full-time job can help the pay interest before it begins accruing is better.

Steps in paying back a student loan

For college students debt being relinquished as debt-free, there's work involved. Recent graduates are either continuing their education to further it, while paying their loans, or recent graduate students opt for other alternatives to repay them. With that said, there are many options that are available.

Actually, one can be debt-free when they repay their student loans immediately after graduating from college instead of waiting the 6 months certain agencies give you or recent graduates.

First of all, the option below is the most popular three ways to repay back a college student loan.

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The options for those who received a student loan from the state or federal government:

- - There are options for those who get in this program. One is joining the military reserves or any of the U.S. military branches as an active recruit (i.e. Army, Air Force, Marines, Navy, or Coast Guard).

- Working full-time in a public servant position is another way to repay back.

- Becoming an educator or teacher to the public school system is another way to repay back. This type of repayment option is going to give you the option to repay by you teaching full-time with the option to be able to get your student loans forgiven, 100% of them as well.

- The William D. Ford Act will give the students their loans a forgiven loan that is based on your income, family size, and dependents; this include the state poverty lines and if you are married or not.

Here are other options that are either, short term or long term repayment Plans: The Standard Repayment, Pay As You Earn (PAYE) and the Income-Based Repayment. Look below at these loan repayment options:

- Income Sensitive Repayment

- Graduated Repayment

- Extended Standard Repayment

- Obama Loan Forgiveness

- Income-Contingent Repayment

- Revised Pay As You Earn (REPAYE)

- Extended Graduated Repayment

Finally, when you decide it's time to take action, don't put it off to the last minute. At times you can simply pay as little as you can, especially if you live in a state that which has a high unemployment rate. Call this number (1-800-699-2908) to get further information on-repaying Federal student loans so you can enjoy life without getting bad credit. You ultimately want to enjoy it while enjoying your work-life as well. It's that balance that will keep you debt-free because every dollar does count towards your loans, whether it's toward the principal portion or the interest portion, paying something, anything, is better than getting bad credit! All in all, don't procrastinate because one thing is for sure, the government agencies will figure out a way to get something back that was lent, and this can be in the form of your income tax return, or even deducting a percentage from your pay stubs when you are, in fact, working.

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