{"id":463322,"date":"2022-06-15T20:23:02","date_gmt":"2022-06-15T17:23:02","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/?p=463322"},"modified":"2022-06-15T20:23:02","modified_gmt":"2022-06-15T17:23:02","slug":"tips-on-living-with-and-escaping-student-debt","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/tips-on-living-with-and-escaping-student-debt\/","title":{"rendered":"#Tips on Living With\u2014And Escaping\u2014Student Debt"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e9daaf1b85\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e9daaf1b85\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/tips-on-living-with-and-escaping-student-debt\/#Tips_on_Living_With%E2%80%94And_Escaping%E2%80%94Student_Debt\" >Tips on Living With\u2014And Escaping\u2014Student Debt<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/tips-on-living-with-and-escaping-student-debt\/#Whats_Coming_In_and_Whats_Going_Out\" >What\u2019s Coming In and What\u2019s Going Out?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/tips-on-living-with-and-escaping-student-debt\/#The_Smartest_Thing_You_Can_Do_to_Get_Ahead_of_Debt\" >The Smartest Thing You Can Do to Get Ahead of Debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/tips-on-living-with-and-escaping-student-debt\/#Consider_Refinancing_Your_Student_Debt\" >Consider Refinancing Your Student Debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/tips-on-living-with-and-escaping-student-debt\/#Be_a_Smart_Taxpayer\" >Be a Smart Taxpayer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/buradabiliyorum.com\/en\/tips-on-living-with-and-escaping-student-debt\/#Your_Employer_Can_Help_You_Get_Out_of_Debt\" >Your Employer Can Help You Get Out of Debt<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/buradabiliyorum.com\/en\/tips-on-living-with-and-escaping-student-debt\/#Are_You_Eligible_for_Federal_Loan_Forgiveness\" >Are You Eligible for Federal Loan Forgiveness?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/buradabiliyorum.com\/en\/tips-on-living-with-and-escaping-student-debt\/#Design_a_Debt_Elimination_Plan_That_Works_for_You\" >Design a Debt Elimination Plan That Works for You<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Tips_on_Living_With%E2%80%94And_Escaping%E2%80%94Student_Debt\"><\/span><strong>Tips on Living With\u2014And Escaping\u2014Student Debt<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>For members of the past five generations, student debt has been one of the most difficult financial issues to manage. If you graduated recently with an undergraduate degree, chances are you owe in the neighborhood of <a href=\"https:\/\/educationdata.org\/average-student-loan-debt\" target=\"_blank\" rel=\"noopener\">$37,693 in student loan debt<\/a>. That\u2019s the national average right now. If you attended medical school, you\u2019re likely to owe about $215,000. Newly minted attorneys graduate with about $165,000 in debt and MBA grads aren\u2019t too far behind. Those who graduate from a top business school typically owe upwards of $100,000 in loans. Student loan debt is often an inescapable reality for those who seek to improve their lives through education. And the problem is likely to worsen if <a href=\"https:\/\/www.forbes.com\/advisor\/student-loans\/college-tuition-inflation\/\" target=\"_blank\" rel=\"noopener\">education costs<\/a> continue to skyrocket as they have for decades.<\/p>\n<p>Is paying off your student loans challenging\u2014or even strangling you? Need help figuring out how to get ahead of debt in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>? Check out our most effective tips for managing your everyday finances and, in turn, reducing the burden of your education debt.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whats_Coming_In_and_Whats_Going_Out\"><\/span><strong>What\u2019s Coming In and What\u2019s Going Out?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The only way to control your financial life is to have a clear, present-tense picture of it. Forget the regrets of the past and take stock of your situation today. Get your pay stubs in front of you. Open up your checking, savings, and investment <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>s so you can reference your most recent statements. If you have a 401K or IRA, add your latest statements to the pile of papers in front of you. That\u2019s the fun part, where you get to count up your accomplishments. The next part isn\u2019t so fun. But it\u2019s essential.<\/p>\n<p>Your next job is to take stock of your fixed expenses, including student loan payments, your monthly rent or mortgage obligations, insurance payments, and utilities, including your cell phone service. We\u2019ll call these your fixed expenses\u2014the ones that allow you to live a pretty basic life. Then\u2014and this is the part that may surprise you\u2014make a list of what we\u2019ll call your <a href=\"https:\/\/www.experian.com\/blogs\/ask-experian\/what-is-discretionary-spending\/\" target=\"_blank\" rel=\"noopener\">discretionary expenses<\/a>: the ones you have more choice about. Here\u2019s where you total up such expenditures as going out to eat with your buddies or buying lunch from your favorite food cart. Include your Uber rides, the money you spend on non-essential clothing items, gifts you buy, your music and video streaming services, movie and concert tickets, and\u2014if you\u2019re being honest with yourself, your fuel costs. If you\u2019re in the habit of buying a morning coffee instead of filling up a mug at home, list those expenses, too.<\/p>\n<p>Your credit card payments fall in the nether region between fixed and discretionary spending. On the one hand, you have to pay them. On the other hand, you can choose not to rely on credit cards. As you total up your expenses, be sure to note how much are you paying in interest on your outstanding? That\u2019s money you don\u2019t have to spend and for many people, it represents a significant portion of their monthly expenses. Now add up what you spend and include an extra 10% for the things you don\u2019t remember to list or don\u2019t have a clear record of, like small cash expenditures.<\/p>\n<p>Now compare your income dollars to your expense dollars. Is there anything left over? Good for you! You\u2019re in a much better position than many of your peers. We\u2019ll talk about smart ways to use your extra cash to reduce your expenses in a minute. But if you find yourself in the red, it\u2019s time to look at limiting your discretionary spending. Can you take public transportation a couple of times a week? Make your lunch at home instead of buying it? Do you really need Spotify, Pandora, <em>and<\/em> Apple music? Or HBO Max, Netflix, <em>and<\/em> Amazon Prime? Streaming services can be a significant drain on your budget and many people don\u2019t even realize how many they have. You may find you rarely or never use some of the recurring-payment services you\u2019ve signed up for. If you\u2019re living paycheck-to-paycheck, you need to do whatever you can to cut your expenses and start saving money. That\u2019s the key to getting out of debt.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_Smartest_Thing_You_Can_Do_to_Get_Ahead_of_Debt\"><\/span><strong>The Smartest Thing You Can Do to Get Ahead of Debt<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here\u2019s the deal\u2014and it may sound crazy\u2014but the easiest way to get out of debt is to get out of debt. Many of us are forced, at one time or another, to rely on credit cards to get by. Some of us use credit cards habitually, in part because we don\u2019t have a clear idea of what\u2019s in our checking accounts and don\u2019t want to risk overdrawing them. That\u2019s why you should always know\u2014and be able to predict\u2014your bank balance at any given point in the month. Credit card balances build up before we know it. And the money we spend to service that debt is considerable. In April 2022, the <a href=\"https:\/\/www.forbes.com\/advisor\/credit-cards\/average-credit-card-interest-rate\/\" target=\"_blank\" rel=\"noopener\">average credit card interest rate was over 16%.<\/a> Most Americans have between $2,177 and $6,694 in credit card debt. If you carry just a smaller-than-average $1000 credit card balance and only make the minimum payment due each month, it will take you about 3 years to pay off your debt. More importantly, you\u2019ll spend nearly $270 on interest charges along the way. In many cases, that\u2019s enough to cover an extra month\u2019s <a href=\"https:\/\/www.forbes.com\/advisor\/student-loans\/average-student-loan-payment\/\" target=\"_blank\" rel=\"noopener\">student loan payment<\/a>. Making extra payments on your student loans reduces your loan principal; which means you will spend less on interest over the life of your loans. That\u2019s true whether you make those payments against federal or private loans.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Consider_Refinancing_Your_Student_Debt\"><\/span><strong>Consider Refinancing Your Student Debt<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Have you taken out both federal and private student loans? You may be eligible to refinance the private portion of your student debt at a lower interest rate today. That\u2019s especially true if you have a higher credit score now than when you took out your loans originally. But it may also be the case if you took out your loans some time ago when interest rates were generally higher. It\u2019s worth a shot to investigate the <a href=\"https:\/\/money.com\/best-student-loan-refinance\/\" target=\"_blank\" rel=\"noopener\">best student loan refinancing<\/a> deals available to you right now.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Be_a_Smart_Taxpayer\"><\/span><strong>Be a Smart Taxpayer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you\u2019re carrying student debt, Uncle Sam can give you a hand. In 2022, the federal government will allow you to <a href=\"https:\/\/studentaid.gov\/resources\/tax-benefits\" target=\"_blank\" rel=\"noopener\">deduct up to $2500<\/a> from your gross income for student loan interest payments. This tax credit has been available for some years and many people aren\u2019t even aware of the benefit. Lowering your gross income will save you federal tax dollars and may even push you into a lower tax bracket. If you\u2019re in a lower tax bracket, you\u2019ll pay a lower overall tax rate. That can save you thousands of dollars off your next tax bill\u2014money you can use to pay off any debt you\u2019re carrying. Start with your highest-interest loans first to maximize your savings.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Your_Employer_Can_Help_You_Get_Out_of_Debt\"><\/span><strong>Your Employer Can Help You Get Out of Debt<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The job market is especially competitive now. Employers are coming up with all kinds of creative ways to attract new employees and keep their highest-performing ones. Some are offering the incentive of student loan assistance. Under current tax laws, employers can contribute up to $5,250 to pay off employees\u2019 student loan debt. That money doesn\u2019t count as income for employees and <a href=\"https:\/\/www.patriotsoftware.com\/blog\/payroll\/employer-student-loan-repayment\/\" target=\"_blank\" rel=\"noopener\">employers earn their own tax advantages<\/a> when they help underwrite the cost of student loans. Only a small percentage of employers offer this type of assistance to employees, but their numbers are growing. So it\u2019s certainly worth asking your company\u2019s benefits manager whether you may be eligible for assistance. It\u2019s also something you can use as a negotiating tool if you\u2019re considering a new job offer.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Are_You_Eligible_for_Federal_Loan_Forgiveness\"><\/span><strong>Are You Eligible for Federal Loan Forgiveness?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you\u2019ve worked for a government entity for 10 or more years during your loan repayment \u2014whether at the federal, state, local, or tribal level\u2014you may be eligible for forgiveness of your federal loan balance under a program called Public Service Loan Forgiveness (PSLF). You may also be eligible if you have worked for ten years in the non-profit sector. Ten years is a long time to spend paying off your loans, but depending on the size of the loan you took out, your loan term may be as long as 30 years. By applying for PSLF, you can potentially save yourself 20 years of federal student loan payments. The process of applying for PSLF is painstaking. So if you\u2019re working in the government or a non-profit sector, you may want to begin investigating PSLF in advance of your potential eligibility date. You can never be too prepared when it comes to applying for loan forgiveness.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Design_a_Debt_Elimination_Plan_That_Works_for_You\"><\/span><strong>Design a Debt Elimination Plan That Works for You<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Depending on your financial circumstances, one or all of the debt-decreasing strategies may work for you. A multi-tactical approach is the best approach. But becoming financially introspective and understanding where your money is going each month is the first step in attacking any financial challenge. So take an honest look in the mirror. Your debt-reduction plan will reveal itself to you once you\u2019ve done some serious introspection.<\/p>\n<p><strong>By Susan Doktor<\/strong><\/p>\n<p><strong>Author Bio:<\/strong><\/p>\n<p>Susan Doktor is a journalist and business strategist. She writes on a wide variety of personal finance topics, including debt management and financial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>. Her contribution comes to us courtesy of Money.com.<\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General <\/a><\/span>category.<\/strong><\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Tips on Living With\u2014And Escaping\u2014Student Debt For members of the past five generations, student debt has been one of the most difficult financial issues to manage. If you graduated recently with an undergraduate degree, chances are you owe in the neighborhood of $37,693 in student loan debt. That\u2019s the national average right now. If you&#8230;<\/p>\n","protected":false},"author":1,"featured_media":463326,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.unsplash.com\/photo-1561522819-87846087bae5?crop=entropy&cs=tinysrgb&fit=max&fm=jpg&ixid=MnwxfDB8MXxyYW5kb218MHx8VGlwcyBvbiBMaXZpbmcgV2l0aOKAlEFuZCBFc2NhcGluZ-KAlFN0dWRlbnQgRGVidCw1MzMuNjAyNDg2MDIwMTMwNXx8fHx8fDE2NTUzMTM1NjE&ixlib=rb-1.2.1&q=80&utm_campaign=api-credit&utm_medium=referral&utm_source=unsplash_source&w=1080","fifu_image_alt":"#Tips on Living With\u2014And Escaping\u2014Student Debt","footnotes":""},"categories":[1],"tags":[130342,130340,130339,130343,130338,130336,130337,130341],"class_list":["post-463322","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-are-you-eligible-for-federal-loan-forgiveness","tag-be-a-smart-taxpayer","tag-consider-refinancing-your-student-debt","tag-design-a-debt-elimination-plan-that-works-for-you","tag-the-smartest-thing-you-can-do-to-get-ahead-of-debt","tag-tips-on-living-with-and-escaping-student-debt","tag-whats-coming-in-and-whats-going-out","tag-your-employer-can-help-you-get-out-of-debt"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/463322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=463322"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/463322\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/463326"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=463322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=463322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=463322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}