Implement these 6 financial tips to help you pay off college loans faster
Before heading off to school, there are many things soon-to-be students can do to help pay off loans quickly
Dad who sacrificed his savings to pay for son's college calls student loan forgiveness a 'bitter pill'
Amid the renewed student loan forgiveness push, Daniel French said he feels as though people like himself, who sacrificed so their kids could remain debt-free, are left out of the conversation.
College is a huge expense.
How long it takes to pay off loan debt depends on a variety of different factors. Typical payment terms range from 10 to 30 years. On average, it takes borrowers 21.1 years to pay off their college loans, according to a study from One Wisconsin Institute per Investopedia.
Paying off loans for years can deter a lot of other plans, like being able to buy a house and start a family. Luckily, there are plenty of things you can do before you even start college to help prepare you to pay off your loans faster.
Paying off student loans can take adults with full-time jobs many years to pay. ( / iStock)
HOW TO PAY FOR COLLEGE: 8 STRATEGIES TO SAVE MONEY
- Apply for scholarships
- Get a summer job
- Get an on-campus job
- Start building good credit
- Budget your school year expenses
- Create a plan for paying off student loans
1. Apply for scholarships
When it comes to scholarships, do not hesitate. You will be thanking yourself later.
You can get awarded so much money in scholarships, and applying is often very easy.
Dedicate time in the summer to finding and applying for as many scholarships as you can. In the long run, this is going to save you a ton of money and will be worth the time it takes to fill out applications.
COLLEGE TUITION COSTS MORE THAN STUDENTS BUDGET FOR IN MOST CASES: SURVEY
2. Get a summer job
With classes in session, it may be difficult to also balance a job. On-campus jobs are always a good option for students to make a little extra money, but you'll probably be able to earn a lot more cash in the summer when you have more free time.
Getting a summer job can help you earn money you can use during the school year, when you may not have as much free time to work. ( / iStock)
Working a summer job can help you cover your expenses throughout the school year when your income is lower.
Look around for local jobs that allow you to still be outside in the summer, like a lifeguard or working at an ice cream shop.
3. Get an on-campus job
Whether you can get an on-campus job will depend on how much time you have on your hands during the school year.
IS COLLEGE WORTH IT? PROS AND CONS
Luckily, there are so many on-campus jobs you can apply for that all require different amounts of your time and dedication.
One common on-campus job is working as a resident assistant. A resident assistant, or RA, lives in a college dorm and helps provide support to students living in the dorm. They foster a sense of community within the dorm, are someone residents can come to with questions and concerns, and make sure the rules of the dorm are followed.
Typically, RAs are compensated by having their room and board costs covered. This can be a great way to cut down on your loans by not having to pay to live on campus.
On-campus jobs are a great way to make extra cash without having to deal with a lengthy commute. ( / iStock)
Other on-campus jobs include working at a coffee shop or in an office building.
4. Start building good credit
If you don't have a credit card yet, now is a good time to get one. You'll want to start building your credit when you're younger, so that you get approved for loans that you're going to need in the future.
MANY PARENTS SAVING FOR COLLEGE AREN'T READY TO PAY FIRST-YEAR TUITION: SURVEY
Look for credit cards with no annual fees and that give rewards for spending.
That extra cash rewards will come in handy while you're on a tight college budget.
5. Budget your school year expenses
During the summer leading up to the fall semester, try to create a rough budget for what your expenses are going to be and plan out how you are going to cover them.
Before going to school, try to create a rough budget so you can plan how you're going to cover all your expenses. ( / iStock)
Carve out some room in your budget for your savings account as well, just in case you wind up in a financial emergency and need to dip into it for some extra cash.
Consider things like transportation costs, food and spending money that you'll need while you're in school.
6. Create a plan for paying off student loans
It's never too early to start thinking about your student loans. How much debt you'll have totaled up at the end of your college career will depend on several factors, like the price of tuition, how many scholarships you receive and how much financial aid is given to you.
About 43.2 million Americans have student loan debt as of the end of 2023, according to Federal Student Aid. That debt can follow you around for years if not handled properly.
Map out how much you are likely to end up with in student loans and figure out a plan of action to pay that off. Maybe that means getting an on-campus job for some extra money to put toward the loan, or cutting down on your other expenses for the time being.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Also, remember that you don't have to wait until you are done with college to pay for your loans.
You can make payments while you're still in school to get that amount as low as possible when you graduate.