How can I possibly pay back debts when I am a full time student?

Question

This is starting to get really stressful and with school starting again next month its going to be even harder to make my monthly payments. I need advice

Its credit debt. I did stupid things with my credit cards when I had them. I have payment arrangements set up. And no I am not looking for someone to "save me" from my debt like someone mentioned. QUITTING SCHOOL IS NOT AN OPTION. That would be the dumbest choice I could make right now.

Answer 1

DO NOT take a year off from school, unless you are unfocused(i.e., undecided on a major or career plans) or your debts are completely out of control. There are many reasons why you should focus primarily on school, particularly on obtaining an internship and making job networking/contacts. Here are some reasons why you should NOT drop out of school to pay off debts:

- If you drop out of school, then you will be responsible for paying back any student loans 6 months after your last day of school. This will do nothing but further add to your list of debt obligations to pay.

- Not only will dropping out of school burden you with more debt/loan obligations, but then you will not be eligible for financial aide. If you are able to move back home with your parents for free or minimal rent, then that's not an issue; but there's a lot of students that are unable to move back in with their parents after college, and do not make enough money to qualify for their own apartment. If you qualify for financial aide, it is only available to you while you're in college...and it can cover the costs of housing/dorm.

- Most colleges generally raise their tuition 10-15% each year. So for each year that you delay graduation, that's extra money you'll have to fork out for tuition...on top of your debts!

- Sometimes when you take an extended leave from college and then return, the college will change the course requirements for your major. This might mean having to take extra courses(i.e., extra time and tuition $)!

- It is sometimes hard to take time off from school and then get back into schoolwork after being away for so long.

- The quicker you get done school, the sooner you will have a degree that will open more doors for you jobwise! That means more job opportunities available that offer better salaries, which means more money to pay off your debts with! If you take a semester off, odds are you will be stuck working some dead-end job like a cashier or waitress, making less than $10/hr.

Assuming that you have a focus and a defined major or career goal in mind, I'd overall recommend that you STAY in school, focus less on debts and credit, and more on networking with teachers and others so that you can land an internship. The paid internships often pay better than your average dead-end part-time job would. For example, my one friend landed an internship at a small pharmaceutical company making $20/hr; meanwhile it took my drop-out friend 6 weeks just to land an $8/hr deli clerk job at a grocery store! Internships also pad your resume, making it easier to obtain a job after college.

Although I'm telling you to focus primarily on school and interning, I'm not necessarily saying that you should forget about your debts 100%. As far as your debts, I'd recommend working weekends(sacrifice some of the partying time if you must) and full-time during summers. Try to find a job that is at least remotely related to your major(for example, if you're pre-med, apply for a receptionist job at a doctor's office or a job as an orderly at a hospital), if it's not a full-blown relevant internship.

If you cannot land a job remotely related to your major, then look for something that has good pay potential. Avoid retail, because the pay sucks(~$6-8/hr) and they often try to manipulate you into working hours that heavily clash with study time. (internships and career-relevant jobs are a LOT more understanding about school schedules!) Bar/restaurant work is good, because your money is based off tips, so your earning potential is a lot greater. Bartenders make great money, sometimes even at corner pubs!(you can always take a bartending course during summer or winter break)

Bottom line, work extra hours during weekends and breaks so that you can pay minimum payments on loans or credit card obligations. But don't let the work interfere with school...trust me, the LAST thing you'd want is to fail out of $3,000 worth of classes, due to a job that pays $7/hr. Not worth it at all! If you have to choose, choose school over the dead-end job. This is the time for you to focus more on making networking and preparing for the Big Picture jobwise after graduation.

While you're attending school, you can save money in some ways so that you have extra money to pay down debts with:
- live at home and commute to college; provided that your school is nearby home, and your parents allow you to do this
- as long as it doesn't interfere with financial aide, find an off-campus apartment and live there. They're generally cheaper than rip-off dorms. But if you have a lot of debt and/or bad credit, you will almost definitely need a cosigner(such as a parent)
- photocopy pages from textbooks. Generally teachers do not go over nearly every page in the textbook anyway. Textbooks are costly(nearly $100 each!).
- eat Ramen, tomato soup, eggs, and other cheap foods as opposed to paying for a meal plan. Meal plans are another campus rip-off.

If you're being hounded by bill collectors, a good way to cope is to have a guy answer the phone when they call, and tell that that they have the wrong number. This can cease the daily calls from collectors. Or you can write the collectors a cease-and-desist letter. Avoiding the collectors won't remove your debt, but it'll make your life a little less hectic and annoying.

Answer 2

were you a full time student when you spent the money that was loaned to you ? Credit Cards are loans.People are to quick to spend,spend,spend. I am not saying I walk on water but I always ask myself befor I pull that plastic out? Do I really want this or do I really need this..and how am I going to pay it back and how long will it take me.And the dumbest thing was to do is rack up hundreds of dollars in credit card debt that tax payers are going to have to bail you out.Why would taking a year off to pay your own debt dumb? Thats why your in debt .

Answer 3

Life is hard and sometimes it sucks. When we use credit to maek purchases or borrow money we are obligated to pay it back in the manner we agreed to. My advice to you is to get a additional income source and funel those earnings into your debts. Will this cut into your free time? Yes? Will it be hard? Yes. Will you have to stay up later and study harder? Yes. But, it's better than having your credit rating all screwed up when later in life you are going to need it.

Answer 4

if they are student loans don't worry about them. Credit card debt? beg mom and dad to loan you the money if you tear up the cards, and you can negotiate with the credit card company if you let it get really old, just make sure the max of the card is not much more than your debt.

Answer 5

What kind of loan do you currently have? Most subsidized and unsubsidized loans through the government don't require payments to begin until six months after you graduate - and trust me, they send you the first bill on the six month anniversary!
When I was in this similar situation, I went ahead and applied for financial aid through the government's website, www.fafsa.gov. I ended up getting thousands of dollars in scholarship money through my college that I didn't know I qualified for! This could really help cut down your debts as well as give you aded aid. :)

Answer 6

Quit school, get a job and pay off your debts. Sounds like you're just looking for a way for someone to "save you" from a financial situation you created yourself. Never to early to learn that life's a booger. Get used to it because that's the way it's going to be.

Answer 7

Why do you have so much debt if you are a full-time student? Work during the school term. Maybe even take a year off of school and pay your debts.

Answer 8

First of all, do you have family that can loan you money? If you do, borrow money from them. If not, then I would cut back on my studies. You can go to school night time/part time and work during the day.

Answer 9

Contact your lenders and request a deferment. That'll put your requirement to pay on hold until you're out of school, even until you're working (deferments can be renewed periodically).

Answer 10

the first thing you should do is to cut off all your credit card.