The Student Loan Ranger strives to provide the best advice on managing student loans. We have the industry experience and expertise to back up our advice, but we also understand that, for some readers, hearing firsthand experience from those managing their own student loans can be the most effective help.
These borrower experiences helps remind others that they’re not the only ones dealing with debt. This feedback can also show you that repayment success is, in fact, possible.
Recently, American Student Assistance®, the organization that writes the Student Loan Ranger, asked members of our SALT® financial literacy program for education consumers to share their best financial tips. Unsurprisingly, many talked about their student loans.
Below are excerpts from a few responses, which we have edited for length and style. If you want more financial advice from college students and recent grads — some were very creative, like this cat video about budgeting — or want to join in the conversation, visit the SALT Central community.
Pay More on Loans With Higher Interest Rates
“I make monthly payments on all seven of my loans, but only two of them have interest rates higher than 6 percent. I make larger payments on those two, and smaller payments on the rest. If I can knock the two with the higher interest rates out soon, I will have less interest to pay in the future.
“Also, see if you can consolidate or refinance your loans. You could end up paying a lower interest rate, and you’ll be less likely to miss a payment. ”
-Bonnie Carleton, University of Maine at Farmington
[Learn 10 student loan facts college graduates need to know.]
Understand Your Loans and Options
“Don’t know what interest really entails? Or capitalization? Or principal? Do whatever it takes to understand each so you know the best approach for paying your loans. For me, it was hours on the phone with my provider’s customer service — hours. But hey, that’s what they’re there for.
“Depending on your loan provider, they offer ways to consolidate your loans for free. You just have to put in the time and effort to figure it out. ”
-Taylor Curtis, Seton Hall University
[Discover eight facts about direct student loan consolidation.]
Stay Motivated and Prioritize Payments
“I put my goal in front of my eyes by literally setting it as my laptop background. A picture of where I bank and a picture of the university I graduated from with the statement across it in bold: I Will Pay off ‘X A mount’ of Student Loans by Christmas of 2017. When you see your goal, you pursue it with more of your effort.
“Pay on payday. Pay it first!
“If you don’t, you’ll be tempted to use that extra cash on coffee, eating out, and social events throughout the month. But at the end of the month, you’ll realize that venti Frappuccino with two shots of coconut and an extra shot of espresso was really , really not worth it in comparison to staying in debt longer than you have to.”
-Hope Koleczek, Palm Beach Atlantic University
Change Your Spending
“One day, I logged into my financial portal and made an astonishing recognition: my bill eight months into my [student loan] payments was exactly what it had started out as. I quickly realized that things needed to change.
“There could no longer be “fun” paychecks. Dinners out with friends were limited to once every two weeks. I began limiting myself to $25 a week for groceries and took out $30 of cash as additional spending money.
“This became a new way of life, and even though it was and is still challenging, I have learned to love it. I am my own biggest competition, and having a cushion of money makes me feel so much more at ease.”
-Ana Romero, Texas A&M University–College Station
More from U.S. News
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Student Loan Relief, Higher Ed Benefits for the Military
How Arbitration Helps, Hurts Defrauded Student Loan Borrowers
How I Repay My Student Loans: Real Borrowers Share Stories originally appeared on usnews.com
