The average college graduate will graduate with a degree and almost $40,000 in student loan debt.

After graduation, students are responsible for paying back these loans, but most cannot afford it. The key is to start dealing with them before you graduate.

If you’re getting ready to start college in the hole, keep reading to learn how to manage student loans.

How to Manage Student Loans

Getting a handle on your student loans quickly will result in a better financial future. Here are five things you need to know about your student loans.

1. Know the Loan Type

There are many different types of loans, but the most common ones are federal and private.

Each loan has its stipulations and payment plans, so understanding which loan you have is helpful. If you’re unsure how the loan works, contact the company, and they can assist you.

Some lenders may or may not allow you to make payments during college, while others require it.

2. Start Paying When You’re in College

Monthly interest will continue to accrue on your loan even while you’re finishing school. Don’t let it get to a point where the interest becomes unmanageable. Start paying down the interest, and when you graduate, you’ll have less to deal with.

3. Stick to a Budget

If you’re working while in college, it can be stressful. Between classes, homework, papers, and meeting the expectations of your job and other duties, it’s enough to be completely exhausted.

But that job will provide you with an income you need to start making some headway on your student loans. If you’re on your own, create a budget and don’t stray from it! While it may not be the lifestyle you want right now, it will pay off in the long run.

Don’t break your budget when you graduate. You’ll still have to pay back student loans after graduation. Keep up your budget to continue paying it down quickly.

4. Make A Plan

When you get out of college, how are you going to handle those student loans? Most likely you’ll have other bills as well, such as rent, car payment, food, and other necessities.

Once you have your loan, start creating a repayment plan, so you know how you’re going to pay it off. Include any additional debts and start paying them off as well.

5. Loan Forgiveness

If you’ve accrued quite a bit of debt over your college career, try looking for a job that offers loan forgiveness. You’re likely to find these in more specialty areas, but they do exist.

Be sure to read the fine print before accepting a position, because some positions will have requirements in place and expectations to fulfill before they forgive any loans.

Don’t Graduate Deep in Debt!

Student loans are a great way to afford higher education. However, they can be challenging to manage if left alone for too long.

The best advice on how to manage student loans is to start making payments on them as soon as you can. Paying them off sooner rather than later sets you up for a successful financial life.