Eliminating Student Debt: A Penny Saved is a Nickel Earned

I'm sure you've heard the wisdom "A penny saved is a penny earned". But with student loans, a penny saved is much more than a penny earned. A graduate with $25,000 in federal student loans who is enrolled in the standard 10-year repayment plan will pay nearly $35,000. I recently began my last semester of college and decided to write down a few "tricks of the trade" I've come across. Here are five ways to reduce your college IOU:

1) Start a SuccessFund.

SuccessFunding champions higher education, supports college students, and fights student debt through crowdfunding. The site allows students to crowdfund money for college tuition, freeing students from the burden of student loans. It's safe for both the student (called the SuccessFundee) and the supporter (SuccessFunder) because the funds are put in a 529 college savings plan. Visit SuccessFunding's website to create a profile and start raising money.

2) Become a Scholarship Bloodhound.

Did you get carpal tunnel writing scholarship essays your senior year of high school? Once you’ve become a vibrant college student often the last thing you want to do is revisit that process. However, spending a little time applying for scholarships can save you a lot of time repaying loans after you graduate. Are there scholarships offered by the department that houses your major? Do civic organizations in your hometown have scholarships open to current college students? Uncovering the answers to questions like these can lead to finding otherwise missed scholarship opportunities.


3) Get to Know Your Financial Aid Counselor and Know Them Well.

Are you on a first-name basis with your financial aid counselor? In any situation in life, it pays to know the gatekeeper. In the case of funding your college, the gatekeeper is your financial aid counselor. Getting to know your financial aid counselor is beneficial in several respects. When scholarships and other opportunities arise, it pays for you to be the first person they think of. Forming a good relationship with your financial aid counselor can also lead to a better understanding of both your college finances and the responsibilities tied to your financial aid.


4) Join a Forum.

I created a profile on College Confidential before I entered my senior year of high school and was quickly engrossed. Joining forums on college related matters is a great way to get advice and discover hidden opportunities. Forums like those on College Confidential are full of students, alumni, parents, school representatives, etc. who may have been in a situation similar to yours or know of ways to help you. I’ve learned that people on forums are passionate and tremendously helpful. Once you understand the ways of the forum, create a thread asking about opportunities at your school, in your field of study, or specific to your situation.


5) Start Paying the Interest While You’re in School.

While you’re in school, the government pays the interest on Direct Subsidized Loans, however Unsubsidized Federal Loans still accrue interest during this time. Get to know all the information about your loan servicer(s) by logging into your Federal Student Aid account. Contact the loan servicer(s) about paying the interest on your Unsubsidized loans. Budget for partial or full payments on the interest monthly so you’ll only be paying the capital once your loan payments start coming due.


by: Paige Witthar