Even though getting a student loan can be the best thing that happens to you if you’re struggling to make it to your dream college, it can be a pain to pay off.
Around 44 million people in the US are struggling to pay off their student loans with their current incomes. Along with the pressure to make ends meet, these people are striving to recover from a collective student debt of $1.5 trillion.
People spend a large part of their life after graduation working from dawn to dusk and see their paychecks deposit as payments for student loans.
Tips For Paying Off Student Loans Fast
Student loans can undoubtedly become a life-long nuisance. Here are 3 ways to pay them off.
Refinance Your Student Loan
Refinancing allows you to combine all your federal and private loans into one student loan which is received at a lower interest rate. You can make your pick from variable interest rates or fixed rates and flexible terms with up to 20 years of payback time. With only one student loan servicer, you’ll be making only one payment every month. Student loan refinancing is the safest bet to getting rid of this liability sooner. However, to be able to refinance federal loans, you need a good credit score and considerable work experience to back you up.
Increase Monthly Payment
Even though this might put you off at first but you’ll thank your better judgment a decade later when you’re free from the constant stress of having to pay off student debt. However to make this way more practical and feasible, don’t overburden yourself with a hefty increment in monthly payment. Begin by pushing up your payment by a $100.
Don’t get bogged down with lesser funds remaining for your monthly expenses. Think of all the extra amount you’re saving by not paying interest for a good number of years. That’s a good way to motivate yourself to increase your monthly payment and cut down the time span required to pay off.
Make a Lump Sum Payment
If you’re not able to endure a monthly increment on loan payment, use any bonuses you’re getting from work wisely. Instead of buying expensive Christmas gifts or taking a trip, use those funds to make a lump sum payment. A big amount goes a long way towards saving you a few extra years of this misery. But in order to do this, make sure to inform your student loan servicer to make an allowance for extra payments on top of the monthly quota.
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