Ways to Clear Your Student Loans Quicker -When you’re a student, the last thing you want to think about is your student loans. After all, education is an investment in your future, and it only makes sense that you wouldn’t want to focus on anything that might put a dent in your pockets for quite some time. However, once you finish your degree and begin working towards a more prosperous future, that’s when you have to face the reality of having student loans. And while most people are fortunate enough to receive financial assistance from their parents or other family members so they can pay them off quicker, not everyone has that luxury. Fortunately, there are many ways to not just pay off your student loans faster but also save money in the process. Here are five tips to help clear your student loans quicker than ever before:
Make the most of your employer-sponsored repayment plan.
If you’re lucky enough to work for a company that offers student loan repayment assistance, you should definitely look into it. Many companies are more than happy to have their employees be more financially secure, so they’re more likely to get promoted or be more satisfied in their position. If your company has a student loan repayment program, it’s likely that they will pay off a portion of your student loans every month automatically so you don’t have to worry about remembering to do it. Besides, even if your employer doesn’t have a specific program, they may still be able to help you out. More than likely, they have a benefits administrator who can help you apply for a student loan repayment program. This is a great way to save money and pay off your loans even quicker.
Consolidate your student loans.
If you’re struggling to pay off multiple student loans, you may want to consider consolidating them into one lump sum. You may be surprised to learn that you may qualify to have your loans combined, allowing you to pay off your debt sooner and save money in interest. Most companies offer a 0% interest rate for a certain amount of time before increasing it. However, if you qualify for federal student loans, you may be able to lock in a low interest rate for the lifetime of the loan. This is a great way to clear your student loans quicker because you’ll only have to pay one monthly payment instead of a few. It’ll also save you a substantial amount in interest.
Automate your savings and pay your loans automatically.
If you find yourself struggling to save money each month to pay off your loans, there’s an easy solution to help you get on track. You can sign up for a student loan payment service that will automatically take money out of your account every month and put it towards your loan repayments. This will help you set a savings goal and keep you accountable for paying your loans off as quickly as possible. If you have multiple loans, this will allow you to put a little bit of money towards each student loan each month. Not only will this help you pay off your student loans faster, but it’s also a great way to build your credit score. If you’re paying your loans off over a long period of time, it can be a good idea to make a larger payment every once in a while to reduce the term of your loan. This can help save you a substantial amount of money in interest.
Get a low-interest credit card and pay double times a year.
If you don’t qualify for federal assistance, or if you want to pay off your student loans even quicker, you may want to consider getting a low-interest credit card. Low-interest cards are typically around 15%, which is significantly lower than what most lenders are charging for student loans. This can be a great way to not only quickly pay off your student loans but also build your credit score at the same time. If you have multiple credit cards and pay double times each year, you can help save a substantial amount of money in interest. Paying double times each year is a great way to help you meet your savings goals and pay off your debt in a much shorter amount of time.
Negotiate with your lender.
There’s no harm in trying to negotiate a better interest rate on your student loans. In fact, many lenders are willing to change your interest rate at any given time. Even if you don’t think you qualify for a lower interest rate, you should still try to negotiate with them. You may be pleasantly surprised when they offer you a better rate. If your request is denied, there’s no harm in trying again. Just be sure that you’re making on-time payments and communicating with your lender on a consistent basis. This is an excellent way to save money and pay off your student loans much quicker.
Student loans can put a major dent in your financial situation, but there are plenty of ways to clear them quicker and save money in the process. You can make the most of your employer-sponsored repayment plan and automatic savings, get a low-interest credit card, and negotiate with your lender. With these strategies, you can clear your student loans quicker than ever before and save money in the process.