Tackling student loan debt is not a top priority for many recent college graduates, but it’s something that must be done. According to CNN Money, Americans owe more student loan debt than auto and credit card debt with $1.5 trillion attributed to student loans. The good news is, getting student loan debt under control doesn’t have to be a challenge.
Here are a few tips to help you diminish your student loans:
Make extra student loan payments. One simple step to pay off student loans quickly is to make an extra payment throughout the year. The government automatically puts a 10-year timeline on federal student loans on repayments, so consider making an extra payment every three months, for a total of 16 payments per year, instead of the usual 12.
Paying more than the minimum balance due. There is no penalty for paying more than the minimum or making an additional payment within a month. Be sure to instruct your lender to apply overpayments to your current balance instead of next month’s bill.
Make payments during the grace period. By making payments during your grace period, you will put a dent in your balance owed. You could also apply the payments towards interest before it accrues. This can also shave time off your repayment term.
Apply for loan forgiveness. If you work for a government organization or qualifying not-for-profit, you could be eligible for public service loan forgiveness. Under this program, your student loans may be forgiven after a certain amount of repayments. Contact your lender to see if you qualify for loan forgiveness.
Refinance your loan. If you are confident in your financial security, refinancing your student loans could be an option for you. Refinancing your loan with a private lender can get you a better interest rate and save you thousands of dollars. Contact a lender to see if you are eligible for loan refinancing.
If you have other ideas or tips on how to pay off your student loans, share them here!
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