Your Guide to Paying Off Student Loan Debt
Accumulating student debt is easy. Paying it off can seem very hard. However, using the tips in this article, you can start paying your student debt off now.
Make More Than the Minimum Payments
If you’re paying your minimum payments every month, chances are you’re only paying on the interest your student loan has accumulated, and not actually paying down the loan at all. If you can make more than your minimum payments, you’ll begin to chip away at the capital of your loan and start to make headway on getting it paid off. Your future self will thank you if you make a few sacrifices now to make finances easier in the future.
Pay Off Private Loans First
If you’re juggling different types of school loans like private loans and federal loans, focus on paying private loans off first. Private school loans have the least amount of flexibility in terms of payment plans, and they don’t offer loan forgiveness. Getting private loans off of your student loan debt plate will take a lot of pressure off and allow you to pay your remaining loans off more quickly. Remember, the fact that you’re focusing on paying off your private loans doesn’t mean you can neglect your federal loans completely.
Choose the Right Federal Student Loan Payment Plan
Once you start paying your federal loans, make sure you choose the correct payment plan for you. The standard ten year plan is usually the best, allowing you to pay off your debt in the shortest amount of time without bankrupting yourself. However, if you’re living paycheck to paycheck and struggling with your minimum payments, you can opt for an income-based student loan repayment plan. Once things become a little more stable, you can take on a more aggressive plan to begin paying your loans off faster.
Find an Employer that Assists with Student Debt
If you’re lucky, you’ll be able to find a job with a company that assists you in paying off student loan debt, especially if your major directly applies to the job you’re doing. If you’re unsure what your employer’s policy on this is, it never hurts to ask. It’s not likely that your employer will pay for your entire debt, but every little bit of help adds up when you’re trying to pay off student loans.
Auto-Pay Your Student Loan Bills
If you’re prone to missing payments or bill deadlines, make sure you set up auto pay for your student loan bills. That way, your payments will come directly out of your account and you’ll never be late. If you miss a student loan bill payment, you run the risk of incurring late fees that might snowball out of control, taking away all hope of paying off your student loans anytime soon. Setting up auto pay is an easy way to keep yourself responsible and on-time, so you can pay off your student loans sooner.
Use Tax Refunds and Bonuses
It’ll help you pay off your student loan debt faster if you make large payments every now and again. If you get your tax refund or a bonus at work, put that money toward paying off your loan debt. It’s extra money that you weren’t counting on for bills, so instead of buying something you don’t need, put it toward a debt-free future.
If you need to pay back your student loan debt in a pinch, CreditBox is here. Our application process is quick, easy, and confidential, and you could have cash in your pocket by tomorrow. Apply online today!