The day your student loans begin payments, are the day that many of us dread. Student loan payments seem never ending, especially for something you finished almost a year ago. With a little heads up on your part, you’ll be able to get ahead of those payments and put them in your last worry-box.
Understand Your Loans, and Make A Plan
While this might not seem like a sure-fire way to pay back your loans; think about all of the money that you could be spending elsewhere that you unknowingly throw away into your loans.
Make a plan and stick to it, you’ll save money guaranteed.
Make Payments While Still In School
Sure it might seem like you’re spending what little money you have on something that hasn’t come due, but in the long run you are saving yourself a lot of money in interest. Over the life of you paying back your student loans, you’ll accrue a lot of interest that would otherwise be yours. Pay what you can, whenever, because the sooner the better.
Consolidate Your Loans
Many loan companies will help you consolidate your loans and bring a few different payments into one lower one. This helps you save money due to different interest rates, as well as keeping you from missing potential payments. Your loan will feel much more manageable.
There are many organizations that partner with sponsors in order to find volunteers and pay them by forgiving or paying on their student loan. Programs vary, but it contributes to your positive emotions as well as paying down your student loan.
Switch From Monthly to Bi-weekly Payments
With switching payments to every two-weeks, there is less time for interest to accrue and you to pay. You can align it with your paychecks and instead of one lump sum at the end or beginning of each month, it feels like two much smaller hits to your wallet.
Pay Extra On Your Loan Whenever You Can
You are always allowed to pay more than the minimum amount due for your student loans. If your budget allows, pay as much extra as you can and you’ll reduce the amount of interest you accrue and the time to pay the loan off. You don’t need to spend a whole lot of extra money, an extra $10 or $20 every so often will make a difference.
Ask Your Employer
Not all employers will be able to, but some are getting into the practice of helping their employees pay down student loan debt with programs and help from the employer. In return you could offer incentives for them such as a contract about time in the company or possibly a relocation.
Take Advantage of Tax Incentives
While there are some requirements to write off the amount of interest you pay, the details are worth looking into. That is extra money you will not be paying to the government in taxes and more money you could even get back. You might even want to put it towards your loans!
Ultimately it is up to you to look into these advantageous ways to pay back your student loans. All may not work just yet, but stay positive that you won’t be locked into those student loan payments forever.