Image Effect

How To Pay Off Your Student Loan Faster – 5 Tips

Share

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email

 

Hear me out if paying off your student loans feels completely out of reach or, worse yet, impossible. You are capable of completing this.

 

Let us first establish some benchmarks. I do not have a secret life tip or magic trick that will enable you to get rid of everything in a matter of days. Just as I did not grow overnight, it will not happen overnight. To reach five feet, six inches, took a lot of endurance.

 

However, if you stick to these 5 guidelines, you can quickly eliminate your student loan debt. It takes time, effort, and a lot of sacrifices to pay off your student loans, but it is possible. I will not lie to you.

 

You can live life on your terms sooner if you pay off your debts quickly. So let us get it done!

 

  • Lookup Found Money 

Cash that is legally yours but hasn’t been claimed is referred to as “found money.” Unclaimed funds from previous employers, insurance policies, government programs, and bank accounts could be available to you. Through official government websites, you can look for lost money.

 

No matter how briefly you lived somewhere, make sure to search for lost money there. Look for money for both you and your spouse if you are married. You might also be qualified to claim any lost money in someone else’s name if you’ve inherited money from them.

 

  • Pay every two weeks – Biweekly Payments

The majority of people only make one monthly loan payment. However, you will end up paying more over the year if you pay your student loans every two weeks though it might take some tight budgeting .

 

This is how it goes: Consider that you divide your monthly student loan payment in half and make two payments per week. A half-payment every two weeks results in 26 payments made over the year. This equates to 13 complete payments per year. You will only make 12 payments for the year if you pay once per month.

 

By making 13 payments annually rather than 12, you could reduce your interest payments and pay off your loan earlier.

 

  • Automatic Payment

Your student loan servicer will automatically withdraw your monthly loan payment from your bank account if you enroll in automatic debit. This not only makes sure that your payments are made on time, but you might also be eligible for an interest rate reduction for enrolling.

 

To find out if your loan qualifies for this interest rate reduction, get in touch with your loan servicer.

 

  • Pay More Than Your Bare Minimum

The total cost of your loan can be decreased over time by making a small extra payment each month. Even after all future payments have been made, keep up with your monthly payments to speed up loan repayment.

 

Check with your servicer to see if the extra payment can go toward your higher-interest loans first.

 

  • Use Tax Refund

Dedicating your tax refund to paying off some of your student loan debt is a simple way to reduce your loan balance faster. You get a tax deduction for paying student loan interest, which is one of the possible reasons you initially received a refund.

 

You can quickly pay off your student loan debt if you stay motivated.

 

Paying off your student loans throughout the next five, ten, or even twenty years is not necessary. You can do so much more with your money when Sallie Mae’s name is not printed on it every month. Imagine how many Beefy Fritos Burritos you could purchase with the extra cash!

 

Related