How Do You Beat College Debt?

College debt is an increasing problem.  More and more college graduates find that their mountain of debt doesn't go away after college, and after graduation, it's time to begin repaying that debt.  There are a number of ways to repay college debt, or even avoid as much debt as possible while you're in college.  College debt can hinder graduates from saving for homes, or even paying their bills on time.  The average level of college debt is now approaching $30,000; more than many college graduates can expect to earn in a year fresh out of college.  So, unless you're going to make $30,000 a year, while living with mom and dad and not buying or renting anything, it's time to consider ways to get that mountain of debt off your shoulders.

The best way to beat college debt is by avoiding it in the first place.  You can help pay your own way through college by getting a job.  If you get a full time job during the summer and a part time job during school, you'll find that you have more money to put towards your education and the time spent in the workforce will be a valuable asset to you.  Paying your own way completely is not as easy as it sounds, but you can certainly help and by doing that you decrease the amount of debt, you'll have after college.

Another method of beating college debt is by refinancing your college loans.  Do this immediately after graduation; you have a six month grace period after graduation, so take advantage of it.  Refinancing you college debts will let you lock in a lower, fixed interest rate and will help by allowing you to make a single loan payment each month, rather than multiple payments.

The best way to beat college debt is still by avoiding it completely.  If you can get a scholarship, do so.  You won't have to pay it back as long as you maintain the requirements and you can get a job to help pay the expenses that aren't covered by the scholarship.

Your parents can help.  Many parents take out a second mortgage on their home to help their kids pay their way through college.  This benefits the kids by allowing them to avoid college debt completely. You can still get a job while you're in college, though.  Help by paying mom and dad back a little of what they've given you.

If you refinance your college debt, check with a local lender.  They will usually be in a better position to refinance your school loans.  Edith Rembart, from Boston, Massachusetts, decided to look for a local lender to refinance her school loans immediately after graduation.  Edith now has a low monthly payment, and because her loans were federal loans, there are no fees attached to the refinance.

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