There is one thing that all students hate equally. Paying off student loans. For some, it can literally take decades. It is not easy at all and it definitely messes with your financial situations. That’s why we did some research and made sure to find some solid ideas that will help you pay them off much faster.
There are literally so many options, but it all depends on you. You really have to do some heavy reading and calculate everything. Before committing to anything, you have to be sure that you’re doing the right thing. With student loans, every penny counts. Starting with the payments while you’re still in college is the best way to go. Once you graduate and find a job, things will get even better. Since everyone wants to get things done faster when it comes to student loans, here are some of the most common ways you can make the trip faster and easier.
Pay More Than the Minimal Amount
Students usually set up their monthly payments on a minimal amount. But that doesn’t mean that you have to pay only that certain amount. If you are able to do a higher payment that would be great. Everything that is extra is welcomed. Even if it is only $50 more. That means that you will pay off your loans faster than expected. There will be no penalty for this. All you have to do is contact your servicer and let them know that you’re adding extra money to the month’s minimal and that you will still be sending next month’s payment as usual. $50 to $100 won’t change a lot in your everyday life, but they will save you years of loan payments. The best way that you can do the extra amount is to set up the automatic payments to a higher cost for every month. The best way to earn that extra money is to be a bit more cautious on spending and try to save some. Avoid buying unnecessary things. Another way to go is to find a job that pays more.
Find A Program That Will Help You
These days there are a number of programs and employers that can really help you out in paying off student loans. The student loan forgiveness program is not available anymore, but there are several alternatives that you might want to consider. Some of the professions do enjoy a loan forgiveness agenda. If you decide and get a job in the public services or as a teacher, you will be eligible to apply and get some financial help. Of course, this comes with certain conditions. For example, the teacher program applies to teachers who have at least five years working experience in several schools. A lot of government employees often do get the benefits of financial help to pay off their student loans. The same thing also happens with military jobs, some nursing jobs, and even certain private businesses and companies.
Make Two Week Payments
This is another great advice. Instead of doing it the classy way, and setting up payments once a month, try doing it twice. It is a commonly used strategy among students. If you have a well-paying part-time job, the chances are that you’ll be able to save more money and save just about enough. It all depends on you. You will have to do the payments every two weeks. First of all, you have to do your research right. If your calculations are on point and show that you can afford this, go ahead and call your servicer. Ask everything you need to know before committing to anything. You don’t want to end up cashless at the end of the month. Even if you decide to pay the minimal amount, you can still divide it into two payments. That will be much easier.
Do Extra Payments
A lot of the providers will allow you to make extra payments. If you have some money on the side and you want to pay the loans faster, make sure that you invest in an additional payment once in a while. Even if you do two a year, that can mean a lot in terms of paying the final amount much faster. You can literally any number that you decide. Some students opt for hundreds of dollars that they’ve saved throughout the months. The best way to do it as adding an extra one every three months. It will really make a huge change. Make sure that you get in touch with the services and let them know that you are doing an additional payment. If you don’t do clarify things the provider will simply add the extra to next month’s payment and you will end up paying more interest. That is something you don’t want to happen.
Use an App to Help You
These days everything revolves around technology. You will be happy to hear that your mobile phone can be of help regarding loan payments. The first thing to do is to download an app that will actually calculate on which date you will pay your final rate. Finding out that you have almost ten more years of payments can be a real wake-up call. Once you see that date that is far, far away you will start considering options that will make the time much shorter. This is one of the best motivational techniques. You can play with amounts until you get a date and year that satisfies your eye.
Another great way to fast forward the student loans pay off. The auto-debit is connected to your bank account and it will get the payment from there every single month. That way you will be sure that you are not missing a date. Another great thing is that some people even manage to get discounts. Since every penny counts, this sounds like a super idea. Each month you have to have enough money on the account so that the servicer can deduct it for the loans. The discounts are not huge, but they are something. You should use any help that you can get. Such small things can save you years of payments if you see the long-term plan.
Possibly the best way to pay off your student loans faster. Everyone has already heard about refinancing, but not everyone does it. There are different private loaners that will offer you this strategy. The whole point is to decrease the rate of the interest. With refinancing you get the chance of paying a student loan and getting a new one with a much lower interest amount. It can get as low as 3.0%, sometimes even 2.5%. To get a bigger chance of getting a loan make sure that you turn in an application to different loaners. Each company has a number of specifications that they will take into consideration. For example, your average pay, a minimum income and more. Once they weigh in on everything, you’ll get an answer. With the refinancing, a major part of the money goes to the actual loan and a very small part to the interest. That allows you to pay everything off much faster. You will still have the options of adding extra payments once in a while.
Use Tax Refunds
If you earn less than $60.000 per year, the good thing is that you can get back some of the loan payments that you’ve done through the tax refund. A lot of people are not aware of this, but the amount that you’ll get back can be very helpful. When you get the money, make sure that you invest it once again in student loans and pay them much faster than planned.
Use Your Bonus
The yearly bonus is a great way to really reduce the number of payments left. When you get that amount at the end of the year, stop planning for a way to spend it. If you restrain yourself from a fancy vacation or common trips for one year, that will make a huge change in the student loans situation. Another great idea is to invest the tax returns that you’ll get. Some people are even ready to put both the bonus and the tax returns as huge payments. This makes an enormous change in the long-term plan and by simply investing a couple of thousands you can shorten the period for months. If you get a job raise, try investing the extra money you’ll be getting per month in the loans. Even if you do only a portion of the tax refund, raise or the bonus, it will make a change. All of the three things combined can take off years from the final date. While you’re still paying the loans, you shouldn’t indulge in very expensive things unless they are necessary.