Student loans are growing increasingly common and increasingly burdensome.
Many people are missing out on lower student loan interest rates because they don’t take the time to research their student loan consolidation options.
- Start making payments before interest accrues
Many loans have a grace period during which interest won’t accrue. If you’re able to work during or immediately after your studies and make payments toward your loan during your grace period, you’ll not only whittle down your balance, but save yourself some interest to boot.
- Make sure that your payments in advance are being applied to the principal of your loans and no future loan payment.
- By paying down the loan with the highest interest rate, you’re automatically charged less in interest, by accessing a payment reduction program.
- Consolidate your debt
If you took out private loans for college, then chances are you’re looking at a hefty interest rate.This will lower your monthly payments. You can then take your savings and apply it to your loan’s principal to knock that debt out sooner.
- By NOT consolidating, you can direct additional loan payments to one loan at a time, the loan with the smallest balance first and knock them each out sequentially, relatively quickly.
- Pay off your loans biweekly instead of monthly
Student loans are generally repaid on a monthly basis. But if you change up that payment schedule, it might help you eliminate that pesky balance sooner. One good strategy to try is dividing your monthly loan payment by two and making it every two weeks. In doing so, you’ll end up making an extra payment over the course of a year, which will get you out of debt faster. Along these lines, making any sort of additional payment toward your loans will get rid of them sooner, so feel free to apply any extra cash you come into toward your principal, whether it’s a tax refund, a bonus at work, or even a gift.
- Move back home after college
If you’re willing to do it for a couple of years, you can take the money you’d otherwise spend on rent and use it to chip away at your student loans. Additionally, unless your parents insist that you split the bills, living at home will also save you money on utilities like water, electricity, and even internet and cable, all of that savings could make a serious dent in your loan balance.
- Find a job that offers student loan repayment assistance
These days a growing number of companies are offering money toward student loans as a workplace benefit. If you’re looking to eliminate your debt faster, it pays to find a company that offers this perk, or ask your current employer to consider it as an additional benefit. Keep in mind that the money you get for your loans frequently comes with a few strings attached — namely, that you’ll need to stay with the company for a certain period of time or otherwise be liable to pay it back. But if you’re willing to make that commitment, your employer might pick up part of your loan tab, thereby allowing you to knock it out sooner.
- Real estate facilities
By buying a property under market value, you’re walking in with a bit of equity. By renting one side of the duplex and the other room in the side where you reside, you’ll create some cash flow (probably enough to offset the mortgage payment).
- Student loan does not get bankrupt
The bankruptcy laws changed protecting creditors from borrowers declaring bankruptcy and wiping out student loans.So, technically, while you can’t bankrupt student loans, there are other loans that could become bankrupt.
- Every extra dollar you earn is a dollar you can put toward your debt.
Depending on your main skill set, you can find some pretty lucrative gigs in things like writing, graphic design, and website building on freelancer sites.
- Automatically save money in a savings account
- Consolidate the main credits and loans.
- Car loan
- Credit card debt
- Medical bills debt
- Student loan debt
- When consolidating the student loan, beware of extra fees, debt settlement or hurting your credit score.
- Do not continue to accumulate debt after you have consolidated the student loan debt.
Carrying student debt can impact you not just financially, but emotionally. The sooner you get rid of that debt, the sooner you can enjoy life without the burden of nagging loan payments holding you back.