We are always told how important it is to get a good education. The idea of going to university and getting a degree has been ingrained into how society values its up-and-coming members. What we are also aware of, is the extraordinary amount of money necessary to achieve this.
College students are often drowning in loans, taking on two or three jobs while going to school at the same time. Let’s be honest; this doesn’t paint the prettiest picture of college life and doesn’t do a great job of encouraging people to go.
Who wants to move away from the comfort of home, only to be hit with the real hardships of life at such a young age? Unfortunately, the rate of pay for those with a degree against those without one is apparent, and as long as this is the case, people will continue investing in higher education.
That’s probably where you are right now, and you want to know how you can make life easier – how you can better yourself through education while alleviating some of the financial pressure.
The following are some tips to help you repay your student loans quicker and heave that weight from your shoulders.
1. Paying A Little Extra
How you handle your loan repayments is often relative to your specific circumstances and the system you’ve set up with your loan provider. In many cases, you can opt to pay extra or to make payments before they are due.
This is an excellent way to get ahead of the payments, which can give you some breathing room to plan ahead. It can also reduce the interest you have to pay and your loan’s total cost over time. Speak to your loan provider if you’re interested in paying more than the required amount per payment.
2. Consolidating Your Loans
If you have various loans across different providers, consolidating these payments into one could help to simplify your loan repayments. This will also lower the monthly amount because you’ll have a longer period of time to pay off the loan altogether.
Along with this, you’ll probably have to make more payments, and you may lose some of your current benefits. Make sure to seek help from a professional or to speak to your loan provider for information on loan consolidation.
Another option is to refinance your student loan, which really means you take out one loan to pay for another. Refinancing may work for those who have large student loans, and most refinancing institutions have a minimum loan amount required.
If you’re thinking of refinancing, make sure you do all your research; EducationData.org is a great resource.
3. Side Hustle Or A Second Job
Creating additional income is how most people choose to pay off their loans faster – and it tends to be effective. Many side-hustle options are available online, which can help you save money for a rainy day which is worth looking into.
Getting a second job involves taking on more responsibility, and you don’t want to make it so that all you’re doing is working. However, if you find something casual that allows you to put extra money towards your loan, you can use your regular income for day-to-day things like bills – or vice versa.
Many loan providers only require you to start paying off your loan after your graduate, and if this is your situation, you will have more time to take on extra work. Make sure to seriously consider whether or not your schedule can handle the stress of an additional job, to avoid overloading yourself.
If this option just isn’t viable, there are always other money-saving ideas out there.
4. Reward Yourself
Don’t forget to reward yourself for making payments. Giving yourself a pat on the back is bound to motivate you to keep up the pace. If you get ahead of your payments, it’s cause for celebration – but not necessarily an expensive celebration.
Being kind to yourself is only going to help you in the long run. After all, you’re only in debt because you decided to put your education first. It doesn’t have to be something major; a reward can be anything from a lovely day at the beach to finally getting that blouse you’ve been eyeing.
Your efforts deserve a little praise, and never underestimate how a good motivational tool can keep you on the right track.
5. Find A Loan Forgiveness Program
A Loan Forgiveness Program will often be available to you if you work in a public service job or in the government sector. This includes first responders, teachers, nurses, or the military.
These programs allow loan forgiveness after you’ve worked for a certain period of time or have made a certain number of payments. They aren’t like private loans, which you must pay to completion or the end of your life.
Roughly 40 million Americans are still paying off their student loans today, and the collective amount owed sits at 1.6 trillion USD. With those kinds of figures, it’s no wonder more, and more students are seeking out new options to pay back their loans faster.
If you’re considering a student loan, or you already have one and you’re scared about having to make payments someday, it’s crucial to set up a repayment strategy. Make sure to refer back to the points above to help you to stay on top of any and all repayments.
The most important thing to remember when paying off your student loan is to keep up with the payments and to put extra money towards them whenever you get the chance. It can be challenging to juggle classes and multiple jobs, yet many students find themselves in this situation.
Always seek advice from your provider on how you can pay off your loan quicker, and don’t forget to ask about refinancing options or consolidating your loan. Each institution has its own rules and programs, so it’s essential to understand what you can and can’t do before getting started.