Simple Tips for Getting Rid of Student Debt with Infographic

Even though President Obama has been trying to get in control rising student debt, what is now being termed a valid crisis, through policies on college education trying to help students make better choices by rating colleges and pay as you earn relief programs, the student loan situation is getting out of hand. If in a student debt or are opting for one there are things you need to know and things you need to do about it.

What you need to know

In the United States alone, the amount of outstanding student debt is approaching $ 1.2 trillion making the average amount borrowed by each student $ 24301. And Canada is not too far away with the student debt trend looming large. The amount of outstanding student debt in Canada totals $ 15.1 million and the students expect to graduate with a debt of $ 26297 per head. Funnily, that is enough moolah to buy a brand new car! If you look at the 2013 best selling cars of July, a 2013 Ford F-150 XL will cost you $ 24070, a 2013 Toyota Camry $ 22235 and a 2013 Honda Civic costs $ 18165. 

When it comes to enjoying the fruit of all that education through a well-paying job, paying back the student loan leaves you with enjoying more of the apple core alone. To look at comparative statistics, Canadian students expect to pay off their student loans in just 6.4 years while nearly 2/3rd of student borrowers in USA are on a standard 10-year repayment plan.

If you have a student loan, and think you are the only one who is harried with problems of paying it back, you are NOT alone. There are 37000000 Americans who are buried under student debts and that is equivalent to the student population of 512 Arizona State campuses! 

What you can do

There are tons of ways of enjoying life for what it is worth and yet being creative and frugal and paying back your loan. Rule number one is to know your finances, stick to a budget and learn to save money, wherever possible. Here are some tips to make your debt less harrowing and more manageable:

Save on housing costs – When on your own, accommodation eats into ones savings like no other. The average rent in the USA is $ 804 / month and in Canada $ 887 / month. If possible then you can live with family for free, which itself is about $ 10000 in savings per year!

Take advantage of student deals – Being a student doesn’t always have drawbacks. Apart from stores and regular loyalty programs, you should check what your bank offers students. For example, Bank of America will waive their $ 12 monthly maintenance fee for students only. That’s $ 144 you will save in a single year!

Drink less coffee – Long nights and hectic days could be salvaged with a daily dosage of caffeine but have it from a coffee shop and the average cup of coffee costs $1.38, but could be much higher. If you are a coffeeholic and consume it on a daily basis, you end up spending over $500 per year which you can easily save up on!

Take the bus – Public transport is a god-send in situations such as these-convenient, timely and easy on the pockets. According to the American Public Transportation Association, you can save an average of $10181 a year with public transit alone!

Cable TV vs. Netflix – Life without entertainment is hard and therefore without having to cut it out entirely, there are ways to find a work-around. With cable TV you could be paying $959.76 with a long 2 year agreement while Netflix would only cost $ 191.76 within the same period. That’s $767 back in your pocket!

Get rid of landlines and long distance fees – Keeping in touch with friends and family is important and email doesn’t always cut it but a home phone line will cost you $29.99/month. With KNCTR, you could easily save over $400 a year by making free internet calls. You can use your computer and internet connection to call any cell phone or landline for free in the USA and Canada no matter where you are. KNCTR, which is the premier social entertainment platform for your desktop, also gives you daily video content (Celebrity News, Sports, and Movie Trailers) and access to social media (Facebook, Twitter).

Students Save Infographic
 

 

Being smart with your money and avoiding unnecessary expenses will make paying back your student loan seem like a distant memory. With these tips alone, you could save $21,993 in just one year, so imagine what you can achieve in more!

 

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