An average graduate carries more than $30,000 student loan debts. So if you are still a student, a semester is another time to add up on your existing student loan debt. While the benefits of investing in education are pretty obvious, there are inherent dangers that come with huge debt accumulations. If you’ve been wondering how you can reduce or do away with student debt completely, then you are in the right place. I have identified six prudent ways you can avoid more student loan. Remember your future financial stability and security is dependent on how you manage your loan today.
Without further ado here is how you can prudently reduce your student loan.
Strictly use a student loan for educational purposes only
As a student, you are in a stage where you are trying to explore what nature has offered. You might actually be tempted to spend money from your student loan other expenses outside education. You should, however, note that if you are using your loan cash for other things beyond your school fees and tuition costs you can run up your student loan insanely fast. Avoid using your loan money for trips, rent and nights outs. All the money should go towards funding your college expenses.
Get a side hustle
It is understandable that as a student you will need some more money for personal use. Well, starting a side hustle or taking a part-time job is a shrewd way of getting some extra cash for extra spending. With this cash in hand, you will be able to avoid using student loan money for non-educational purposes.
Additionally, if you take up positions in school you stand a chance of getting some benefits; you may get a discount or be able to register early. If the jobs are too demanding for your course, you can consider one time gigs and events which allow you more flexibility. On campus opportunities for work studies can significantly help to reduce or do away with loans by covering expenses such as boarding fees.
But remember working too much can take much of reading time required to maintain grades for qualifying scholarship funds. Better still, you can do some freelance work on your free time. If you opt for some of the campus jobs, your financial aid might reduce if you surpass a certain threshold.
Seek financial aid
There are plenty of grants, scholarship and other programs out there. Look for one which you would qualify for. It is worth noting that some financial aid may come as a loan. You are trying to minimize a loan here, aren’t you? Do not settle for debt as your first choice.
It does not hurt to apply a program you had did not qualify for in the past especially if factors such as your GPA have changed. Look for other types of financial aid; an opportunity might be waiting for you to grab it.