6 Approaches to Managing Student Loans If You Leave College Early

From the time I was just three years old, I knew exactly what I wanted to do in life and how to get there, including choosing the right academic path. I was lucky enough to get high scores on my college entrance exams, which meant I could have attended state colleges for free. However, their programs didn’t match the career I had in mind.

So, I decided to go to an affordable private school out of state, even though it wasn’t entirely within my budget. They offered me scholarships, but I still needed to take out student loans. I tried to keep those loans as low as possible and excelled in my studies, which helped me land a position as a resident assistant to cover my living expenses.

Unfortunately, things took a turn when I started experiencing serious health problems, making it tough to keep up with my coursework. I had no choice but to leave college and move back in with my mom.

Soon after, I faced the challenge of repaying my student loans. While I could work, my job paid just above minimum wage since I didn’t have a degree. Living with my mom rent-free meant all my earnings went to loan repayment.

I’m sure many others find themselves in a similar situation, struggling to repay loans without having finished college. It can feel discouraging because it doesn’t match the life plan you had. But I want to assure you that it’s not the end. Here are six strategies to help you handle your student loans if you’ve had to leave school:

1. **DON’T RUSH TO WITHDRAW:** If you haven’t left already, consider part-time studies instead. Look into any options your school offers that might work for you.

2. **UTILIZE YOUR GRACE PERIOD:** After leaving college, there’s usually a grace period of about six months before you have to start repaying loans. Use this time wisely to organize your finances and budget.

3. **CONSIDER YOUR LOAN OPTIONS:** Depending on your reasons for leaving college, you might find options for temporary loan relief. However, if you can manage it, start paying your loans as soon as you can.

4. **STAY CONNECTED WITH YOUR DREAM CAREER:** If you plan to return to college someday, try finding part-time jobs or tutoring opportunities related to your field to gain experience.

5. **CUT DOWN LIVING COSTS:** Even with a budget, there are always ways to reduce your living costs further, which can help you pay off loans quicker or save up to return to school.

6. **CONSIDER RETURNING TO COLLEGE:** Remember the strong reasons why you started college. Look into the possibilities of continuing your education under your current circumstances.

Leaving college and dealing with student loans can be tough, but these tips can help you manage. It might feel overwhelming now, but it’s a temporary phase. Make a solid plan for handling your loans and shaping your career path, whether you go back to school or not. I lived frugally for two years with my family’s support before eventually returning to college. Despite increased tuition, I graduated and have since focused my income on paying off those loans.