Student debt is a massive problem, as the cost of education continues to rise. If you have kids in college, they’re accumulating some pretty hefty debt right now. Or, if you have children who are going to college in the next few years, they will have to deal with debt as well. Either way, as a parent, you should provide as much advice as possible to help your kids get rid of student debt as fast as possible.
No, this doesn’t include paying some of their debt off! As kind a gesture as that is, it’s not a precedent you want to set for your kids. They’ll think you’re always there to bail them out, which will lead to some pretty poor financial decisions in the future.
Instead, point your kids in the direction of this article as they will see some tips to pay off student debt as fast as possible:
Earn money while studying
The easiest way to pay off any debt is to minimize the debt you have.
For a student, this can be hard as you have standard tuition fees each year. However, you could try to pay some of these fees yourself by earning extra money on the side. Nowadays, students can earn a fair bit of cash from the comfort of their dorm room. Alternatively, there’s still the traditional route of finding a part-time job.
The money you earn can either go towards next year’s tuition (minimizing the loan you take out) or be saved to pay off your debt when you graduate.
Study a subject that leads directly to employment
A big problem for most students is that they spend three years studying, then end up back home without a job. It means all the debt gained was a bit of a waste. So, look for subjects or courses with great job prospects.
Think of things like becoming a qualified counsellor or studying to be a doctor/dentist. These careers are highly in-demand, so the job prospects are excellent. Also, most will lead directly to employment, meaning you get a full-time job straight out of uni.
From here, you can start saving money every month to go towards the student loan.
Live with your parents
It’s not ideal, but living with your parents can save a lot of money.
You’re working a full-time job, so it’s not like you’re lazing around taking advantage of them. As long as you help around the house, there’s no reason your parents won’t let you stay.
Especially if you explain that it’s temporary, just until you pay off your debt. Consider how much you save by not having a place of your own – there’s no rent, no bills, nothing. It supercharges your saving and means you can get out of debt a lot faster.
To any students out there, these are the tips you need to get out of debt. For the parents of students, send your child this link and give them some great advice. This is the role all parents should play – you help your kids out, but you don’t mollycoddle them and provide an easy exit for all of their problems.