(StatePoint) Not long after graduation, the daunting financial reality for many college grads sets it. There is approximately $1 trillion in total outstanding student loan debt in the United States, according to the Consumer Finance Protection Bureau.
There is a lot to consider when starting to pay off student loans, so it is important to know your options to deal with this debt. Here are some tips from the experts at Sallie Mae to help manage student loans:
• Create a Budget: This can help eliminate unnecessary spending to help you pay off your loan faster.
• Automate Payments: Most banks allow for automatic bill pay through their websites. Set up a monthly payment to ensure you never miss a payment and take a credit hit.
• Don’t Skip: Putting off payments typically means you’ll pay more over the life of the loan. You don’t want to owe money unnecessarily.
• Pay Extra: Whether you start making payments while in-school or pay extra whenever you can, you’ll reduce the amount of interest that is capitalized. Even a small payment helps. Be sure to calculate what your monthly student loan payment will be under different repayment options.
For more on managing student loans, visit www.SallieMae.com.
Don’t let student loans overwhelm you. With the right approach, you can take control of your finances.