Three Ways to Reduce Loans While You Are Still in School

When it came to paying off my student loans, I understood that the bulk of it would have to be done after I walked across the stage to get my diploma. However, I was eager to make the most of my time and money in the interim of being a full-time student and you should be too.

There are several things you can do in the midst of college to save yourself thousands of dollars.

1. Pay off interest while you are still in school. If you allow interest to accrue, that amount will add onto your principal loan amount, which will result in more interest accruing and more debt come the start of your repayment period.

Still not convinced? Try this little trick. Multiply your interest rate by the current principal balance of your loan. Then, divide that number by 365 (number of days in a year). The result is how much interest is accruing daily.

Example: (4.4% x $21,000)/365 = $2.53

That may not seem like much, but it sure grows when your are lying in bed trying to sleep at night.

2. Consider a work study or side gig, or work over the summer.
Work study. Many colleges and universities offer work studies to qualifying students as a means of reducing cost of tuition. You do work for them and in exchange they will charge you less, which means you can borrow less! Speak to an admissions counselor or financial officer at your school to see if this option is available to you.

The side gig. My personal favorite is babysitting. Often times, you are paid to do homework while the little ones are sleeping and once you prove you can be trusted to one family, word will spread like wild fire. A side gig can be just about anything though. Shredding papers for an elderly couple, walking dogs, house sitting, the list goes on and on. The key here is making connections. If you are not from the area you go to school in, you may want to check your school's job board. People from the community will often post their needs there.

The summer job. With just a few months to work and limited time to submit applications, getting a summer job can seem daunting. However, there are several ways to get your foot in the door:

• If you had a job in high school (and left a good impression) try there. If they liked you and need help for the summer, they may be willing to bring you on again temporarily. 

• Think of businesses that have an influx of customers in the summer. Places like theme parks, frozen yogurt and ice cream shops and movie theaters may need seasonal help. 

• Many students just don't want to be tied down by a job over the summer when they could be out having adventures. That is understandable! Why not consider working for a summer camp? The pay is not usually great, but with food, room and board covered, you will still leave with some extra cash. There are plenty of hidden opportunities for you to work in exciting settings. Another one is working for the National Parks Service, which offers seasonal jobs around the nation to students pursuing their degree. Check it out! 

3. Come up with a plan and make a budget. Even if you are making loads of money over the summer and saving all of the money relatives give you for your birthday and holidays, it means nothing without a plan. Do the math to figure out how much money you will need to cover normal expenses during the semester, how much you will put towards interest and how much you will save. 

You are doing yourself a favor! Go the extra mile to pay off interest, make money and establish a plan. You won't regret it in the long run.