Home Debt Consolidation How To Pay Off Student Loans Faster

How To Pay Off Student Loans Faster

Are you reading this article because you want to pay off your student loans faster? You’re not alone! Or maybe you have in mind one of these questions?

  • How long does a student loan take to process?
  • How to get a christmas loan with bad credit?
  • Denied student loan now what?

The total level of student loan debt in the USA now in the middle of 2019 increased to $1.8 trillion. And it is growing every day, every hour, even every second! National student loan debt is a bubble with no end in sight.

As the costs of college continue reaching greater heights, so do borrowing levels.

Paying those loans back has started to be a costly and supposedly impossible effort because of wages stagnating. But of cause it is real to find a way to make it work: either through serious levels of self-discipline, sacrifice, or any one of many financial moves, people pay off their loans and are happy with it!

Best REFI companies for students

How long does it take to get a student loan? If you have this question so press any link above!

Rules To Pay Off Your Student Loans Faster

What can a student loan be used for? Even everything. So it doesn’t matter what is your reason of taking a loan. Do you want to pay off your loan faster? Rules below are for you!

  1. Prolong the poor student lifestyle
  2. Use the debt snowball method
  3. Take on a side hustle
  4. Refinance highest interest student loans
  5. Pay off while you’re still in school
  6. Make extra payments
  7. Pay more than the minimum
  8. Try automatic payments

#1 Continue lifestyle of poor student after graduation

Congratulations! You have finished University! You are an adult now. Let’s celebrate it with a big party and begin to waste more money and not to save. NO!!!

The first rule is to avoid big purchases for 1-2 years and continue living the poor student lifestyle. This will give you a possibility to pay off your student’s loan sooner. This is a smart way to pay down debt when you’re first starting.

An easy example: if you have roommates, continue to live with them.

It is good to remember to use your newfound salary to pay down your student loans as fast as you can, so don’t spend it to inflate your lifestyle.

#2 Debt snowball method

  • Create a list of all of your student loans. First line – the smallest loan, continue with increasing sums. Finish with the biggest amount.
  • At the end of every month, you can pay off your extra money towards the smallest balance while paying minimum payments on the rest of your loans.
  • Every month you have a small victory: fewer loans – and less debt over time.

#3 Take a part-time job

It is very simple: if you earn more money you can pay off more! It doesn’t matter what side hustle you will choose. And yes, it is not a miracle, you have to make efforts to pay off faster and to spend time to reach your goal. In addition to this, you should understand that this extra money is only to pay off your loans but not to waste on entertainment!

#4 Refinance your highest interest student loans

This idea works not in every situation but a lot of students are shortening their repayment period by refinancing their student loans. Sometimes they do it even not only once.

these new loans create a track for borrowers to repay their loans quicker – and save money in the process, if you can use it reasonably,.

So if you choose this way, so be aware of next few things:

  • If you are refinancing federal student loans with a private lender, so it means for you losing out on federally-funded perks and backstops such as income-based repayment, deferment, and forbearance.
  • You should make sure you’re actually getting a better interest rate if you refinance.

Best REFI companies for students

How long does it take to get a student loan? If you have this question so press any link above!

#5 Pay off your loans while you’re still in studing

If you haven’t graduated yet and if you’re earning an income, it’s probably wise to start paying down your student loan balances right away.

And if you don’t have an income, so think about the idea of finding a part-time job. Now you are lazy and may think that you have all your life ahead to work but believe us that you’ll probably thank yourself later for paying off your loans sooner than later.

Many student loans accrue interest while you’re still in school, and that interest gets added to your total once you graduate. By making payments all along, not only can you diminish your total loan balances, you can also cut down your cumulative interest all along.

#6 Make more than 1 payment every month

If you wish to pay down your loans fast and forget about it, so another option is to make more than one payment per month.

Some people prefer bi-weekly payments that are connected with payday, although others choose random payments throughout the month.

It doesn’t matter what way you will choose as long as the extra payments are being made every month several times.

By making extra payments, you’ll be in the position to reduce the principal on your student loans at a faster pace.

You could also save a boatload of money in interest by prepaying your loan and speeding your payoff date up by months, or even years.

#7 Pay more than the minimum

Making a huge sum might be painful at the moment, but it’s one of the best ways to pay off your debt. If you wish to see your debt decrease fast, so pay as much as you can whenever it is possible. For example, take your next money-gift for your birthday to the bank and pay down your student loan. In future when you will be free of your student loans you will be happy that you have done it.

#8 Use an automatic payment program

Several student loan servicers offer automatic, paperless payment programs that allow avoiding writing a check and simply auto-debit your checking account on a paying day every month. It is much easier! And for sure you will never be late.

Moreover, some of these services will offer a discount for signing up – or for signing up for paperless statements. And don’t forget that you can always make extra payments manually if you can do it.

To sum up

How long does it take to get a student loan? Very fast. However process of paying off student loans can be hard, but let the numbers decrease everywhere they may; it’s up to us to find ways to get our finances straight.

Just remember, you’ve got a wealth of tools at your disposal.

You can dream up a lot of ways to get out of debt faster, and most importantly, smarter.

Leave a Reply

Your email address will not be published. Required fields are marked *