Affordable student loans, is there such a thing? The answer is yes, of course there are many methods available today that make it extremely easy to pay off a student loan, even a larger loan.
This article will give you a little more information on the methods available to make your student loans more affordable, or in other words, you can turn the mountain into a molehill.
Let’s take a look at some ways to make this happen:
Postponement
The good thing about deferment is that it will allow you to complete your education and only start repaying your loan when you graduate or leave school. This will take a lot of pressure off of the 4-year student.
One of the things to consider is that you should be aware that there will be an accrued interest component and this will add to your overall costs. In other words, your original loan of, say, $15,000 could become $25,000 in debt when you start paying it off. (Something about ‘no free lunch’ comes to mind.
Difference – Deferred or Normal
Although obtaining a deferred loan has its advantages, the final result is what we should think about. If we were to take out a typical student loan of about $20,000, depending on the term and interest rates, our payment could be about $300 each month.
If we look at the same loan and apply the deferred payment method, when our first payment is due, it could be around $400 per month or around 25-30% more.
It’s a great idea to use a loan calculator and see all the options that are available to you. Pencil and paper, a calculator and a few cups of coffee is what you will need.
Consider
Another thing worth taking a look at is the fact that you can use your free time during your years of study to help you build a passive income.
There are many types of methods to raise additional funds, here are some of the methods that I have personally used with great success:
online business – You can start your own online business website, there are many methods that are actually free and you can also promote these sites using free methods available.
e-books – Did you know that you can publish a book on the Kindle platform for free? It costs nothing to use this massive platform to make money, you don’t need a website, you don’t have to pay for traffic, in fact the only thing you need to publish your book on the kindle platform is a word document of your book and a jpeg image of the cover.
fundraising – Set up your own crowdfunding website, you can actually get simple software that will transform your website into your own crowdfunding site. The advantage of this is that you will be able to keep all the funds you raise without the fees.
I hope you have found some useful ideas and I wish you good luck with your studies.