Is debt something you are super excited to accumulate? Probably not! When debt is taken on, it can cause serious stress and create additional issues in one’s life. According to Debt.org, “Whatever the cost, whatever the cause, debt wreaks emotional havoc on our psyche. Among the negative effects are low self-esteem and impaired cognitive functioning. That means you can’t learn, remember, be attentive or solve problems as well when you’re freaking out over your water bill.” The debt issue extends beyond the finances; it can creep into how we function and view ourselves. Who wouldn’t want to avoid all of those things, right?!

Knowing that, it’s unfortunate that “Americans owe over $1.71 trillion in student loan debt, spread out among about 44.7 million borrowers. That’s about $739 billion more than the total U.S. credit card debt” (A Look at the Shocking Student Loan Debt Statistics for 2021, 2021). Student loan debt is rampant and does not seem to be going away anytime soon. While student loans can be used in moderation to help achieve goals, it can easily add up without the student’s true understanding of the impact it will have in a few years on their personal finances. Therefore, students should be proactive in ensuring that their debt is manageable which will help set them up for success after college. Here are a few tips to help manage student loan debt while in college:

1. Be intentional about what college you are attending. There are so many schools to choose from which could make your college decision an overwhelming one, but you can often find your non-negotiables at a university without a hefty price tag. But, be sure to apply to see what aid you can receive before turning a school down because of their sticker price. The final cost may end up being less expensive then you originally thought it to be.
2. Attend a junior college for the first year or two or take AP classes in high school.
3. Estimate your annual salary for your first year out of college in your desired profession. One rule of thumb is to not take out more than you would make in your first year of work after graduation. Of course, there are exceptions, but it’s a good starting point.
4. Apply for scholarships both entering and throughout your college years.
5. Live on a budget while in college. Living off a budget could free up some cash that could be put towards the next tuition payment; therefore, lowering your student loan debt or towards paying interest or principal off of your student loan itself.
6. Make payments on your student loans, especially interest accruing loans, while going through school. Many students do not think it is possible. It’s easy to have the mindset of “I will deal with it once I graduate”. In reality, every little payment helps in the long run.
7. Consider living off campus, but realize living off campus comes with more risk and extra responsibility. It’s likely that living off campus, especially with a roommate, will be less then the university’s room and board costs, but you always want to double check. Check with financial aid to confirm no aid would be taken away. Consider things like extra time needing to meal plan, grocery shop, and then cooking. Maybe you think you won’t eat out much, but you find yourself in a time crunch frequently and eat out more then anticipated. Or it was a really cold winter and your electric bill was much higher then anticipated.  
8. Graduate early (if your major allows) by arranging classes strategically and taking the maximum allowable course load.

And if you would like help putting this together, feel free to set up a free one-on-one coaching session with me HERE.

Sources

Fay, Bill. The Emotional Effects of Debt, https://www.debt.org/advice/emotional-effects/. Accessed 2 September 2021.

Studentloanhero.com. A Look at Shocking Student Loan Debt for 2021, 27 January 2021,  https://studentloanhero.com/student-loan-debt-statistics/. Accessed 2 September 2021.