A Creative Way to Payoff Student Loans and Build Wealth

Is it difficult to payoff student loans as a new graduate? Many of you would say yes. Generally, college is an idealistic time in life with expectations of making big changes in the world. Perhaps you grow up believing in the American Dream and you still do! That is OK because it is still there for you. You've gotten a good education that cost you a relatively large amount of money – an average of $ 20,000 to $ 40,000 in student loans. What's next?

Student Loans Repayment

After college you expect to get the job of your dreams and eventually start the process to payoff student loans. The downturn in the economy has made it harder for recent college graduates to find jobs. Do not be alarm; there are alternative ways to build wealth. However, you must begin think outside the box and consider new and creative ways of doing this.

If you have any federal loans, even if they came through a private lender, you can consolidate them through the Federal Direct Consolidation Loan Program. This option offers different repayment schedules that are meant to help you take control of your debt and start to make payment through one source.

Most importantly, do not default on your loans . Defaulting on loans can make your life much more difficult. Employers who run credit checks on prospective employees may pass you over if they see you have defaulted. However, there are options to avoid going into default. If you qualify, you can get forbearance – temporarily reduces or suspends your regular payments; or deferment – no payments during the approved period and no interest is accrued on federally funded loans. Check out these options for more details as it may vary based on the lender and type of loan.

Building Wealth

If finding a job or making enough money to payoff student loans is an issue, you might want to think outside the box or even throw the box away. There are a number of ways to make money other than working a JOB. With a job you trade your time for money which makes it difficult to significantly decrease the time it takes to repay your loans. You should make loan repayment a top priority in your budget. The quicker you can repay it in full, the more you will be able to enjoy the increased income your education brings.

The secret strategy of wealthy people is developing multiple streams of income. Building multiple streams of income is one of the best wealth building techniques that you can employ in your life. Successful entrepreneurs, such as Donald Trump, have several business opportunities in their capitals. Students or newly graduates can replicate this same strategy on a smaller scale.

One of the easiest ways to get started is to use the internet for a home-based business. You can make money online using Google search engine and a blog to create opportunities for passive income. This is a great way to build wealth and payoff student loans at the same time.

Source by Carolyn S Porter

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