Student Debt- Get it Paid Now!

by Jason Cabler · 7 comments

Want to get out of student loan debt without taking 20 years to do it?  Then read on!Student Debt- Get it Paid Now!

If you have student loan debt from taking out student loans for college, you’re not alone.  Student debt has become a huge problem for a lot of people over the last few years.  Because of the current economic climate, too many people are having trouble paying off those loans.

That struggle has become a huge factor that is holding back economic recovery for individuals, and for the country as a whole according to this article at Huffington Post.

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Total student debt has now exceeded the Trillion dollar mark, and there are no signs that it’s letting up any time soon.  Times being what they are economically, it’s actually more likely that student debt will continue to rise even further.

So how did all this happen?  Why is there so much student debt keeping people in bondage?  It’s because the government has made it way too easy to get money for college, and too many people have gobbled up those loans without really considering the potential future consequences.

This easy money allowed more people to go to college (a good thing).  Because of that, colleges had to hire more staff, build more classrooms, more dorms, etc., so the cost of college has grown way more than inflation has over the years.

Easy student loans have created a vicious cycle that has turned into a student debt bubble, much like the housing bubble.

When money is too easy to get, things get out of hand.

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What Can You Do About Your Student Debt?

So what can you do if student debt is dragging you down?

Well, just like paying off any debt that’s affecting your life, you have to decide to get intense about it and do everything in your power to kick that student debt out of your house for good.

The first thing you have to do is make a plan. It’s much harder to achieve any goal if you don’t first have a plan for achieving that goal.  Decide on a date you want to have your student loan paid off, then figure out how much you will need every month to make it happen.

You may need to cut some things from your monthly budget (You do have a written budget right?), get a part time job, or sell anything that’s not nailed down (Here are some other suggestions).

Yes, it may be painful and difficult, but you’ll find that when you start making progress toward your goal, you will start getting excited about the process and discover that working those extra hours and selling that stuff in the garage you don’t use anyway are worth it.  You will start seeing that student debt burden disappear much quicker than you had ever believed would be possible.

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Remember, the temporary hardship only lasts for a short time, but it will eliminate years, even decades of stress from those student loans hanging over your head like a Looney Tunes ACME Safe waiting to drop.

If you’re currently in school or getting ready to start, I want challenge you to do something different.

Find a way to work your way through school.

Even if you have to take a year off and work your tail off to build up some cash for tuition, it will be one of the best decisions you ever make.  You will look back in 20 years and realize that you did a very smart thing.  You’ll be happy that you’re not struggling with student debt alongside raising a family and trying to save for your future.  You will be happy that you’re not struggling with student loan debt while your peers are still trying to get theirs paid off. (Read about 6 ways to start your finances the right way after graduation)

When it comes down to it, if you have student debt, there is no way out of it except for paying it off.  So get intensely focused, make a plan, and find a way.

Anyone can do it.

You may have to sacrifice for awhile, but it will be so worth it in the end.

Have you had struggles with student debt?  Have you paid off your student debt or gone to college debt free?

Tell me about it by leaving a comment.

Resources:

Obama, Student Loans, and You

Money Advice for Graduates

How Do I Start a Budget?

5 Ways to Make Extra Money, Even in a Tough Economy

Student Loans are Holding Back Economic Recovery

 

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Tagged as: bubble, pay off debt, student debt, student loans

  • http://twitter.com/MonroeOnABudget Paula Wethington

    Hi Jason! I’m a financial blogger / columnist in Michigan. I did a special project on the student debt situation in summer 2012 in addition to the articles I’ve been doing for the past several years on college scholarships, college access and related topics. Many of the students I spoke to last summer took out loans only after all other available sources were tapped out and they needed to make up the difference. Summer jobs are no longer a guaranteed source of income in the meantime, as the internships that are frequently recommended (if not expected) in certain career fields could very well be unpaid or “pay to play.” Anyone who started a two- or four-year college degree program before the recession started was particularly hit hard as some scholarship and grant funds fell apart on short notice during those years. Another detail I learned is that dropping out can make things worse. Example: Two of the students I spoke to this summer had to leave temporarily for family emergencies. One found that he had to backtrack with new required classes when he returned, which added to his expense. The other dropped out after a semester’s “withdraw” date, ended up with failing grades for all those classes, wrecked her GPA and had to appeal to be readmitted. Again, this added time as she tries to finish her degree. …. The take-away points are: don’t start college until you know what you want to study / do with a degree, make sure a full-time semester includes at least 15 credit hours instead of 12, pay attention to the financial aid and scholarship deadlines that reach their peak in February for the following academic year, and maintain academic eligibility for your scholarships and grants.

    • http://www.CFinancialFreedom.com Dr. Jason Cabler

      All excellent points and great advice Paula! I think it’s very important to steer people away from the mindset of using student loans for most or all of their college education. I am very much against debt and all about debt freedom at every stage of life, and I believe that you definitely can get a college education with the right amount of planning and hard work.

      You’re absolutely right when you say don’t go to college until you know what you want to study, and to take a full load. I think that’s where a lot of people get into trouble. When you have little direction and planning, you can dig yourself a hole pretty quickly.

  • Bent over by Sallie Mae

    This advice only works for grads that fall into the $23K average student loan debt. Or even the 10% who owe $54K. But what about those in the 1% who owe over $100K like myself? At my current payments it would only take me 2-3 years to pay off $23K and maybe 5 years to pay off the $54K. When you have over $150K, cutting out the small stuff won’t even make a dent in your loans. My plan is simple, don’t default, that’s pretty much all I can hold on too. I have my MBA, and investment that I thought would have me sitting pretty career wise and financially, but that’s not the case at this point. Granted I am only 26 and a lot can happen, but I don’t see my loans being paid off within the standard 10 year repayment plan.

  • http://www.bluecollarworkman.com/ TB at BlueCollarWorkman

    I think this advice works too for other types of debt. My wife and me are working to pay off our mortgage early and we’re doing a lot of these tips. Selling things, taking on side jobs, and sticking like glue to our budget. And hey, it’s working! So yes, it can be done! :)

    • http://www.CFinancialFreedom.com Dr. Jason Cabler

      Doesn’t matter what kind of debt it is, you can get it paid off by using these tips. You just have to keep after it and be consistent.

  • http://twitter.com/StudentLoanKill Kyle Lambert

    Great article! This is something I wish I had read before I took out loans and went to college lol. 

    Right now I’m working on finding creative, new ways of paying off debt… things like freelancing, helping other people/businesses run social media campaigns,  and running a website of my own (where I talk about my experiences paying off debt).  And, of course, serious budgeting and saving.  A lot of my motivations have come from your site, so thanks for everything!

    • http://www.CFinancialFreedom.com Dr. Jason Cabler

      Awesome!  It’s great to know that people are getting inspiration from what I’m doing.  This is why I do it.  My goal is to change lives for the better.

      People like you make it worthwhile!  Please spread the word!