WayToReduceDebt.com

“I wish someone had told me before college that my school loans would total more than the annual salary from the job I was preparing for.”

Does this sound familiar?

A study of college students who graduated between 2000 and 2004 shows that their average amount of student loan debt was almost $16,000 for public school students and as much as $23,000 for private school students. Fresh grads often experience sticker shock upon realizing how much they have to pay back. For the two-thirds of all students who relied on loans to pay for college, debt can divert careers and hinder plans to get married, buy a home and even start a family.

The sad reality is that the daunting process of getting out of student loan debt can last for years. An average 22 year old student who graduated in the year 2006 and consolidated a $40,000 loan at 6.125 percent will have to pay at least $243 each month until they reach the age of 52. Unfortunately, unless they act fast and get out of debt, they will have only paid the amount of the interest alone - about $47,000 – by that age.

Tips for Getting Out of Student Loan Debt

After graduation, the stress of getting out of student-loan debt can be overwhelming. Fortunately, there are several methods available to help with getting out of student-loan debt.

The first tip for getting out of student loan debt is to consolidate, or combine, loans. There are lots of lenders who are more than willing to loan students money to pay for school. However, the loan might come with a high interest rate, especially if the student has no or less than perfect credit. Through debt consolidation, the student can get a better interest rate and lower monthly payments, as well as the convenience of making just one payment each month.

Those getting out of student loan debt should also consider refinancing. Consolidation can save them money, though it might not bring monthly relief. Refinancing can spread repayment of the debt out over a longer period of time and lower the monthly payments as much as 50 percent. However, this option can result in ultimately paying more before finally getting out of the debt.

One of the most important things to remember while getting out of student loan debt, or any other debt, is to make the payments faithfully. Missing payments or making late payments will only increase the debt.