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I'm 19 and transferred to a university. I left my community college with no debt. At my university due to my living situations I need to work full time. With that being said I have to have the vast majority of my classes online.

The university I attend charges almost $200 more per credit hour if the class is online. I just got my first bill and it's totalling around $7,000 (Without the FASFA), I already paid for my books and whatnot.

As for work I don't entirely make the best amount of money. I make $14.50 and as much as I'd like to say no overtime I do get it, but would rather not like to include a variable. So I guess I'm making 25 - 27K a year.

I want to get out of this debt as quickly as I can. How should I do this? Should I start payments right away, or wait for my actual career? Is there interest on this debt? I was informed there was no interest until 6 months of either being considered a drop out, or upon graduating.

Porixify
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(Note that this is a primarily opinion-based answer.)

I want to get out of this debt as quickly as I can. How should I do this?

Regardless of whether or not you have SL debt, the way to get out of debt quickly is to:

  1. Know where all your money goes.
  2. Live within your means: pay off your CC bill every month!
  3. Live below your means: you need to build an Emergency Fund in case... well, you can figure out why.
  4. See if your employer offers a 401(k) and whether it "matches" any of your contributions. If they do "match", then contribute to the 401(k), since that's effectively a pay raise.
  5. After accumulating a $1000 e-fund, use the Avalanche Method for paying off any existing debts.

Regarding paying off your Student Loans ASAP...

  1. if they truly are not going to accumulate interest until 6 months after you graduate (read the loan agreement(s) and verify!!), then it's literally (and temporarily) free money. Take the money you'd otherwise use to pay the debt and stick it in a high-yield savings account (I like Ally Bank, but many others exist: Capital One 360, Synchrony, GS Bank, etc) until it does start accumulating interest.
  2. borrow as little as possible. (That sounds obvious, but people graduate with staggering amounts of SL debt because they were completely irresponsible with partying and living well above their means.) EDIT: this doen't mean you can't live off of SLs while in school; just live modestly at a state school...

Good luck!!!

RonJohn
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I want to get out of this debt as quickly as I can. How should I do this? Should I start payments right away, or wait for my actual career? Is there interest on this debt?

I used to work in Financial Aid, so my answer comes from a Financial Aid perspective.

You are eligible to start repaying your federal student loans as soon as they are disbursed. The great thing is that if you make payments on them within 120 days of disbursement, then you don't pay interest on the amount you pay back. So let's say that you have a federal student loan of $1000, with an interest rate of 4.5%. The interest start accruing from day one. However, if within 120 days you pay back $500, then the interest accrued on that $500 is reduced - meaning you don't pay that interest amount. You have to ensure that you apply the loan payment as a "refund" to your account. Contact your loan servicer for more information.

On federal student loans, you do not have to start your payments until 6 months after graduation or when you fall below half-time status - which ever comes first. Half-time status is defined by your school, so contact your Financial Aid or Registrar's office to find out.

In regards to whether or not you should start making payments right away, I would say "yes". Even a small $20 payment every week can make a big difference!

You should reach out to your financial aid office as they are there to help students manage their student loans.

Michael
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