10 Resolutions to Keep Student Loans in Check for 2015
Reduce Your Student Loan Debt in 2015
Most of us could benefit from a few diet, exercise or family-related resolutions this year. But don't overlook student loans.
There are some simple efforts that borrowers can make to reduce costs and streamline repayment in 2015 -- no matter which point in the borrowing process they've reached. Here are 10.
1. Choose Your College Wisely
For college and graduate school hopefuls looking to continue their educations in 2015, the first step to reducing student loans is to select a college wisely.
Check out the colleges with the cheapest tuition and fees, which offer the best value and by other criteria.
2. Don't Waste Disbursements
Those still in school should make plans to use their student loan disbursements wisely.
That means borrowing prudently, reducing costs with off-campus housing and thinking twice about that pricey spring break trip to Cancun.
3. Pay Down Interest
College and graduate school enrollees can take control of student debt now by making interest-only payments.
That strategy helps students chip away at debt and develop good student loan repayment habits.
4. Focus on School
Borrowers who let their part-time jobs overshadow their studies run the risk of delaying graduation. That can inflate debt as they pay for extra semesters, absorb tuition increases and enter the workforce later.
Limiting hours, working on campus and finding a job related to a student's major can help a student focus on graduating promptly -- and ultimately borrow less.
5. Figure Out What You Owe
Borrowers without a sense of how much and which types of loans they've borrowed, head to the National Student Loan Data System.
This database houses information on each borrower's federal loans. To log on, borrowers need their Social Security number, personal identification number and other information.
6. Get Payments Under Control
If payments get out of control, borrowers can avoid being crushed by student loan debt.
They can talk to their lenders, look into income-driven repayment plans, forbearance or deferment and forgiveness.
7. Automate Payments
Never miss a student loan payment in 2015 -- and beyond -- by automating student loan payments.
Automatic debits help borrowers avoid missed payments and late fees. Plus, they may earn a 0.25 percentage point interest rate reduction on their federal loans.
8. Get Out of Default
Even borrowers who've defaulted on their student loans can get back on track this year.
There are a number of options, from tying payments to income to extending repayment and consolidation.
9. Prepay Loans the Right Way
A promotion or pay raise may allow borrowers to put extra cash toward their student loans this year. But prepaying student loans is less straightforward than writing an extra check each month.
Borrowers need to decide which loans to prepay first and specify, in writing, how to allocate any extra funds in order to save the most money in the long run.
10. Consider Refinancing
Refinancing federal student loans through a private lender can help some students lock in a lower interest rate or change other repayment terms going forward.
But the strategy isn't for everyone -- it comes with lots of risks -- so approach it carefully.
More About Tackling Student Loans
For more information on paying down student debt, follow the Student Loan Ranger blog and U.S. News' college loan center.
You can also follow U.S. News Education on Facebook, Twitter and Google+ to join the conversation and stay informed about the latest tips and advice on paying for college.
Susannah Snider is an education reporter at U.S. News, covering paying for college and graduate school. You can follow her on Twitter or email her at ssnider@usnews.com.
