Now that you’ve graduated and have student loans debt it’s time to get serious about paying off student loan debt faster. Although looking at those numbers of debt can be mind boggling, you don’t have to stay in debt forever. In fact, here are 7 tips for paying off student loan debt faster.
7 Tips for Paying Off Student Loan Debt Faster
Highest Interest First
Although someone will say to pay the lowest amount first, it’s better to pay the highest interest first. Why? Well you are going to save more money when you get the highest interest paid off first. When you pay on those high interest student loans monthly, the large majority of the payment is going to interest and not principle.
Part Time Job
Working one job pay seem like a lot and adding a second job may seem like overkill, but it’s the perfect way to pay off student loan debt faster. This is because all of the money you make from your second job can be sent directly to the bank to help pay off those loans even faster. Of course this takes a little bit of discipline.
Pay On Time
A lot of college graduates ignore their student loan debt like it never happened. You can’t do that. You need to pay on time and every time. The more payments you miss the harder it will be to catch up and get out of that student loan debt.
Avoid Deferments or Forbearance
If your goal is to get your student loan debt paid off faster, consider avoiding things like deferments or forbearance. While these options may seem like a good thing at the time, you will still have to pay the interest back and make those payments at some point. The sooner you start paying, the sooner you will get these student loans paid off.
Sacrifices Will be Required
There’s no doubt that paying off student loan debt is one of the hardest things to do and sacrifices will need to be made. Consider creating a cash budget for yourself every week. Once that money is spent, it’s gone. While you may not be able to hang out with your friends every week and spend a ton of money, you’ll be glad you made those sacrifices to get the student loan debt paid off even faster.
Get Student Loan Debt Forgiven
There are ways to get your student loan debt forgiven, but how? Teachers can get their student loan debt forgiven after a certain time period. If a school has closed, you can get some of the debt discharged. If you work as a public worker, some of your student loan debt can also be discharged. Here is the resource for checking to see what can be forgiven and what cannot be forgiven. Nothing helps you get rid of student loan debt faster than having it forgiven.
Know What You’re Signing
Before you even take out student loan debt, make sure you know the interest rate of the loan you are taking out. Oftentimes, the interest rate is what makes the loan even harder to pay off. If you have a chance to consolidate the debt, this is also a great option because that will often times reduce the interest rate amount.