Graduating from college can be an exciting time, but the reality of student loan repayment can be jarring. Daniella Flores shares her experience of paying off $15,000 in student loans, which ended up costing her an extra $4,500 due to mistakes she made along the way. Some of the mistakes she made include not prioritizing her student loan payments, not fully understanding how student loans work, putting her loans in forbearance and deferment, and falling for a loan consolidation scam. These mistakes added to her overall debt and made the process of paying off her loans more challenging.
After realizing her mistakes, Daniella put a plan in place to tackle her debt. She set a repayment goal, enrolled in automatic payments, paid more than the minimum payment, increased her income through side hustles, and learned more about managing her money. By taking these steps, she was able to pay off her nearly $20,000 outstanding balance in eight years. She emphasizes the importance of educating yourself about loans, interest rates, and different repayment options to make informed decisions about your debt.
To avoid falling into common debt pitfalls, Daniella advises others to prioritize student loan payments, fully understand how loans work, avoid putting loans in forbearance and deferment unless necessary, and be cautious of scams offering consolidation options. She also encourages individuals to increase their income through side hustles or additional work, set repayment goals, and educate themselves about personal finance to make informed decisions about managing their debt. By taking control of your finances and staying informed about available resources and options, you can effectively manage and pay off your student loans.
If you are feeling overwhelmed by student debt, Daniella suggests checking the Federal Student Aid website for guidance on lowering or suspending payments. There are situations where student loans can be forgiven or canceled based on certain qualifications, and switching to a different repayment plan that suits your financial situation could offer debt relief benefits. By staying proactive and informed about your options, you can navigate the challenges of student loan repayment and work towards becoming debt-free.
