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Jun 26, 2017 02:57 AM EDT

After college, the worst thing that scares students is probably the magnitude of their college debts. Borrowing money from private lenders rather than the federal government may result in larger obligations. Here are four tips on how to avoid early "bankruptcy" after graduation:

Do not hang on to private loans

Per Federal Student Aid, private loans typically cost more and impose tougher deals on borrowers. Some of the most lenient choices for students asking help from the federal government include the Stafford and Perkins loans.

While federal loans offer interests, these are payable over the next 10 years. Always be mindful of salary offers after graduation. Never have a total debt larger that the projected starting salary in the future first job.

Additionally, federal loans give students a temporary break in payments if ever they do not get jobs right after graduation. Usually, private lenders do not give this type of consideration.

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Do not ask for a longer repayment plan

Some would surely be tempted to ask for a repayment plan. Often, they pick the deals that let them pay for over 20 years instead of 10.

To illustrate, anyone having a $30,000 debt with a four percent interest will have to pay $304 monthly. In 10 years, the borrower has paid a total of $36, 448. On the contrary, in 20 years, the monthly payment will just be around $182. However, the total cost by the end of the contract will be a whopping $43, 630.

Basically, that is a $13,630 interest rate. With this amount of money, the student could have bought a car or a home down payment.

Pay a little extra whenever possible

Over a lifetime of work, college graduates typically make $600,000 or more compared to those who do not have academic degrees. Thus, upon getting a good job and a good salary, try to pay more than the minimum monthly payment required. Certainly, the debt will be over sooner than later.

Commonly, there are no penalties for paying off student loans fast. This method must be observed especially for private loans with higher interests. Also, if the borrower has a credit card debt, getting rid of it should be a priority.

Save for other necessities

While paying a little extra is a good strategy, Chicago Tribune reported that not saving enough cash for other necessities is bad. Those who try to end their debts a little too soon end up empty handed when it comes to emergency funds.

Borrowers should also be setting aside some money from every paycheck for housing, transportation, food, etc. During the first job, experts advise new employees to save at least 10 percent of their salaries.

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