CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Managing Student Loan Debt

The average college student borrows at least a portion of his or her tuition money to attend a four year school. This means most young adults graduate college already in debt. For some, the amount owed by the time they enter the workforce is two to three times their annual salary. Having this much debt at such a young age is a frightening scenario, but it is common. Luckily, there are ways to protect your credit, still save money when your earning potential is limited, and manage your student loan debt.

Get Organized

The best place to begin is to organize your finances. Understand what you will owe in student loan debt when the loan repayment period begins and determine the amount of each monthly payment. Some people have the option of postponing loan payments for a period of time, but the interest continues to accumulate during this time. Postponing loan payback does not save you money overall, but it can provide an opportunity to get settled into a job and begin your life before repayment begins.

Create a Budget

Once you have a handle on what you owe and how your repayment is structured, create a budget. It can be tempting to overspend once you are employed full-time and earning more, but do your best to keep your spending under control. A budget helps you prioritize and ensures your bills are paid and your savings is built before you spend on other things.

If possible, begin budgeting before you graduate. If you are working while attending school, aim to save about 10% of your earnings so you have a small cushion by graduation.

Work with Your Lender

Ignoring your student loan and not facing financial issues regarding the money you owe is a big mistake. Lenders can provide options to make it easier to pay back the money owed. The average student loan has a repayment period of 10 years. If you think paying off your entire loan in that time is unlikely, speak with the lender about an Income Based Repayment Plan. This ensures your loan payments are less than 10% of your income and forgives the remaining debt after 25 years.

It is possible to postpone payments for a short period of time. Some lenders allow you to skip payments for a month or two here and there, in case you change jobs or face a financial emergency. Again, remember interest continues to accumulate during this time, so in the end you pay more for the loan.

Defaulting on a student loan affects your credit score, which means a mistake you make as a young adult can affect you well into mid-life. This is why it is so important to take action when financial problems arise. If you are struggling with student loan debt or you believe a lender is taking advantage of you, contact the Law Offices of Robert M. Gellar. We’ll help you sort through your student loan issues and build a bridge to your financial future.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

How Does Getting Married Affect Bankruptcy?

If you are considering bankruptcy, you may be wondering how getting married affects your ability to file. The answer is...
Read More

How Does Filing for Bankruptcy Affect a Vehicle Loan?

If you're considering bankruptcy, you may be wondering if you'll be able to keep your car. The answer depends on...
Read More

8 Ways to Deal with Student Loan Debt

If you're one of the millions of Americans saddled with student loan debt, you're probably looking for ways to minimize...
Read More

Tips for Handling Credit Card Debt

If you're struggling with credit card debt, you're not alone. The average American household owes nearly $6000 in credit card...
Read More

Don’t Fall for These Common Bankruptcy Myths

There are a lot of misconceptions out there about bankruptcy. Working with a debt defense attorney is one of the...
Read More

Can Filing for Bankruptcy Affect My Career?

It’s common for people considering bankruptcy to wonder how filing affects their job. The answer to this question depends on...
Read More

Can I Fix My Credit After Bankruptcy?

Wondering how to improve credit after bankruptcy? Here's what you need to know. Bankruptcy can be a fresh start for...
Read More

What Happens If I Can’t Afford Chapter 13 Bankruptcy?

Are you wondering what happens if I can’t afford my chapter 13 payments? Here's what you need to know when...
Read More

Help I Regret Filing for Chapter 7 Bankruptcy

Bankruptcy isn't the right choice for everyone. Depending on your unique financial situation, you may be able to find other...
Read More

How a Bankruptcy Attorney Helps You Avoid Problems When Filing

Do you know what mistakes to avoid when filing for bankruptcy? If you're considering filing for bankruptcy, it's important to...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions