How to tackle YOUR student loan debt

For more than 15 years, the government has recognized April as National Financial Literacy Month in an effort to teach Americans how to reduce debt and make better financial decisions.

Unfortunately, one of the highest sources of consumer debt in the United States is student loans. Totaling nearly $1.6 trillion, this debt burden doesn’t just affect young adults. More than three million Americans over the age of 60 are still paying off their student loans.

If you’re one of the nearly 45 million Americans struggling to pay off their student loans, here are some ways to reduce your debt.

• Understand your repayment options. There are eight federal plans with varying time frames and monthly payment sizes. You can change your plan at any time to better suit your evolving financial situation.

• Ask for forgiveness. Nurses, government employees, military personnel and teachers in low-income schools might be eligible for a loan forgiveness program. The government will also forgive your remaining debt after 20 or 25 years if you’re enrolled in an income-driven repayment plan.

• Consider consolidation. You may be able to save money by combining your existing student loans into a single loan and negotiating a new interest rate and loan term based on your current credit score and income.

Keep in mind, a proactive approach to paying off your student loans will put you in a better financial situation to reduce credit card debt and save for retirement. To pay off your student loan quicker, consider tightening your budget, using windfalls to make additional payments and if you can manage it, getting a second job.

Last year, the Financial Literacy and Education Commission urged higher education institutions to provide mandatory financial literacy courses, in part because studies show many borrowers don’t fully understand the repayment obligations when they obtain a student loan.