How to Pay Off College Loans on a Budget

College can be a great opportunity for an education and a wonderful experience. The rude awakening comes once you receive the final bills, and the letter informing you that it's time to repay that student loan. Most loans don't require repayment until at least one year after graduation. While it may take some time to get on your feet after finishing college or if you are living on a strict budget, it can be hard to begin repaying the loan. There are special programs that you can join or steps to take to begin repaying college debt.

Instructions

1. 

   Sign up for a deferred payment until you can pay your monthly balance. Be sure to try to pay on the interest when you can, as that will still rise throughout the year.

2. 

   Apply for economic hardship programs if you are only working part time or making minimum wage. Applicants must reapply every year, and can defer their payments for up to three years usually. Some student loans also offer forbearance programs through which students can apply if they are having financial hardships.

3. Speak with a college loan customer representatives and let him know about your current income status. See if it is possible to get your monthly payments lowered if you are currently unable to afford your present payment plan. Some may require extra applications or paperwork, but you can lower your monthly payments if needed.

4. 

   Take some money each week out of your paycheck to use towards your college loan payment.

5. 

   Speak with a loan specialist at your local bank. She may be able to give you a lower interest rate on a loan. See if you can borrow money from your bank to pay off your student loan, and then repay the bank at possible lower interest rates.

6. Find a low interest credit card. If you are able to make minimum payments each month and have decent credit, you can pay off your student loan on your credit card. While this may not be a solution for everybody, it would be helpful for those who have good credit but can't afford high monthly payments. The minimum payments on the credit card may actually be lower than the repayment of your student loan.

Tips & Warnings

• If you sign up for a forbearance or deferred payment, be sure to try to keep up with paying the accrued interest on your loan. Interest will continue to accrue even when you do not have to make the full monthly payments on your loan.

Resources

• How to Repay Student Loans