Certain Eastern philosophies believe the world is eternally striving for balance. When it comes to college, this is never more apparent than when the joy of graduating from college is matched against the horror of the first student loan payment bill.
The vast majority of students use loans to get through school. These loans can be out of sight, out of mind while you are in school. That ends quickly when you graduate and are staring at a bill for tens of thousands of dollars. So, what can you do?
One of the first things that you can do is defer your loan payments. If you intend to attend grad school, have a hard time finding a first job, or are going through some serious economic troubles, you are entitled to deferment. For those that have found a job, things are just a bit different.
While finding a new job is a great step towards a new career, it also means that you have no excuse not to start paying off those loans. Whether you change your name, move, or stop picking up your mail those bill collectors will find you. Instead of cowering inside of a closet, consider lowering those payments.
The idea is to exchange lower payments for a longer pay period. You consolidate your loans. Instead of paying them back in 10 years, you are given 30 years. The monthly payment goes down, but you will pay more over the course of the loan.
If you pay off the consolidation loan for the full 30 years, it is a vast financial mistake. To make it work for you, make one extra payment a year whenever you can. You will cut the repayment term down by half or more.
No matter which method you choose, you will have to pay back those loans some way or another. While all that money spent during those college years may be a distant memory, rest assured that those loan collectors will hunt you down wherever you are.
Though it is entirely tempting to move to another country or plan your own funeral, the best way to grapple with these loans is to simply begin to pay them off. It may take you a few years, but once those loans are paid you will be well on your way to financial freedom.
About the Author:
While the vast majority of people need to take out student loans to attend college, David Thomas writes about how many also need to consolidate federal student loans after graduation.
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