Student loan is good because it is a future investment. However, too much of it can seriously hurt the borrower. The life-cycle events such as marriage, acquisition of dream cars, good homes, and saving for future retirements are forced to delay for students who graduate with massive debts. Students should make informed, as well as responsible choices about lenders and student’s loan before borrowing. Here are some of the strategies for students to borrow responsibly.
The first strategy is to save the money spent on food. Food is the major problem. People either consume too much or spend a lot on groceries until it cost their budgets to swell. Cooking and packing personal meals at home saves as the excess (or leftovers) can be frozen for future use. The student could also carry it away to school for lunch to save the daily lunch expenses. Most students never bother to buy non-perishable items. They should consider this strategy and use coupons as well. They should check the cost per unit of all sizes and select the best deal. One should get the Simple Dollar Coupon Finder for updates on various items, and just go for what’s needed. The non-important items should be cut-off even if they are on sale. They might carry the non-perishables from home if they are available. Consumable habits such as alcoholism and smoking could be minimized or eliminated as well.
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Secondly, students should reduce the grooming expenses. Weekly hair-cuts and styles should be cut back to other weeks. If nails are done twice in a month, it could be cut down to a month or two. The student could instead hold manicure parties with friends at home. Trim the clothing expenses. Buy few but high-quality clothes and utilize the already-owned wardrobe. Cell phone bills could be trimmed by downgrading to cheaper cell phone plans without the whistles and bells. If it’s used a lot, the features which are paid for should be scrutinized well to see if any of them could be eliminated.
To lower the monthly payment on students’ loan, they could also take the graduated repayment plan which enables them to pay a small amount that increases with time. Typically, the payments are spread over the students’ course. Another one is the Pay as You Earn plan. The monthly payment is capped 10% of discretionary income and the loans will be forgiven after twenty years of repayment. The third strategy is to consolidate the loan. This will make it easier for the borrower to repay by streamlining and reducing the student loan payment. One could pay once a month instead of making multiple payments.
