To claim that student loan debt is a problem in the U.S. would be an understatement. Americans owe a collective $1.78 trillion in student debt, with the average payment per borrower amounting to $337 a month.
Of course, student loan debt levels can vary by state. California, Texas, and Florida have the most student loan debt, while North Dakota, Alaska, and Wyoming have the least. In fact, Wyoming holds the distinction of having less outstanding student loan debt than any other state.
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That said, borrowers in Wyoming still owe $1.7 billion in educational loans. And that's hardly a small amount of money.
No matter what state you live in, it's important to get a handle on your student debt so you don't fall behind on it. Here are some moves that could help.
1. Follow a tight budget
When you owe money in any shape or form, it's important to budget carefully to help ensure that you're able to keep up with your payments while also working toward other important financial goals. If you're not on a budget, create one.
Use a spreadsheet or app to record and track your expenses so you're able to make the most of your paychecks. If you see that you're at risk of not making your loan payments, make changes to your non-essential spending.
2. Consider a side hustle
Many people pick up side jobs to boost their incomes for various purposes, whether it's buying a house, saving for retirement, or socking funds away for a vacation. A second job could make it easier to keep up with your student loan payments. If you're hoping to pay down your student debt ahead of schedule, a side hustle could be your ticket to making that happen.
3. Look into different payment plans
If you're having trouble keeping up with your student debt, you may have different options for repaying it -- especially if you took out federal loans. Federal student loan borrowers can apply for different repayment plans. Some may extend the loans, while others are income-based. Either would result in lower monthly payments. Research your options if your current monthly payments are putting a massive strain on your budget.
If you took out private loans for college, you may not have many options for changing your monthly payments. But it's worth reaching out to your lender and asking.
If you show proof of your income, your lender might agree to extend your repayment window to make each monthly payment of yours less expensive. Of course, going this route could mean paying more total interest on your loans, but it might give you some much-needed relief on a monthly basis.
No matter where you live and how much money you owe in student loans, it's important to keep up with those payments and take steps to ensure that they don't wreck your finances and hinder your goals. Budget carefully, consider getting a side job, and explore different payment-plan options to keep your loans manageable until you're able to shake them for good.
