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Strategies on Student Loan Repayment

15 Best Strategies to Quickly Wipe Out Your Student Loan Debt

Do You Have a Student Loan? Should You Repay It? In This Article Look at 15 Strategies to Quickly Wipe Out Your Student Loan Debt.

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15 strategies to pay off student loan debt faster
In this Article

Do you have a student loan? Should you repay it? In this article, we look at 15 strategies to quickly wipe out your student loan debt. Read more about these 15 tips here.

Strategy #1: Pay More Than the Minimum Payment

It’s a small difference each month, but it adds up over time! Make sure to calculate what this would be for your loan before choosing an amount to go with.

Even your small change earned from tips from your part-time job could make a difference if you put it towards your student loan debt.

Pay More Than the Minimum Payment

Strategy #2: Choose Your Repayment Plans Carefully

If you have a lot of high-interest loans, for instance, it can be easier on yourself and more beneficial to use the graduated plan rather than paying them all back at once

Choose Your Repayment Plans Carefully

Strategy #3: If Your Job Offers Student Loan Repayment Benefits, Sign up for It

It’s an added benefit that will help you pay off your student loans faster and get rid of student debt for good.

If Your Job Offers Student Loan Repayment Benefits, Sign up for It

Strategy #4: Refinancing Your Loan Is a Great Way to Lower Interest Rates

It’s best for those who are focused on paying their debts back quickly but it can be costly so make sure you do the math before refinancing.

 Refinancing Your Loan Is a Great Way to Lower Interest Rates

Strategy #5: Get Tax Cuts Through the Student Loan Deduction Program

Doing this will lower your taxable income, and by extension, reduce how much you have to pay in taxes.

tax deduction

Learn how to avoid student debt early by knowing how to get tax cuts and using technology like autopay.

Strategy #6: Automate Your Payments

Enrolling in autopay is a great way to ensure that your student loans are getting paid on time so they don’t end up hurting your credit score.

 Automate Your Payments

Strategy #7: Start a Side Hustle

Consider something like delivering food or driving for Uber and use your earnings to make extra payments towards the balance on your loans.

Start a Side Hustle

Strategy #8: Cut Unnecessary Expenses

Eliminating non-essential expenses is a great way to make room in your budget for extra payments on your student loans.

budget

Study how you can live within your means while enjoying your student life. Use the extra cash towards softening the burden of your student debt.

Strategy #9: If You’re Flush With Cash, Make Additional Payments to Your Student Loan

When you earn more money, don’t spend it rashly. Making extra payments towards your student debt will help you pay off your loans more quickly and reduce the total interest you’ll have to pay over time.

Additional Payments to Your Student Loan

Strategy #10: Opt for Bi-Weekly Payments

Instead of making a payment towards your loan every month, make a payment twice per month reducing eventual long-term student debt.

Opt for Bi-Weekly Payments

Strategy #11: Eliminate Interest on Your Capitalized Balance

This will prevent the balance from increasing and save you money over time.

Eliminate Interest on Your Capitalized Balance

Strategy #12: Make Extra Payments Using Your ‘Found’ Money

‘Found money’ is the term used to describe any funds you may have that are not already committed to other expenses such as student loans. Put this towards your student debt.

Make Extra Payments Using Your 'Found' Money

Strategy #13: Motivate Yourself to Pay Your Student Debt

This will help you to save money in the long term and eliminate some of your stress as well so you can concentrate on your studies.

motivated

Part of being a student no matter what course you’re studying is to learn how to budget and handle debt. If you have a student loan, it teaches you to make adult decisions in your youth.

Strategy #14: Always Make a Budget

Once you have a clear idea of what’s coming in and out each month, take some time to figure out how much money will be left over for paying off student loan debt. Living on a budget is often the best method.

Always Make a Budget

Strategy #15: Make Some Financial Sacrifices

If the money in your monthly budget is not enough to pay off student loans, you may need to make some sacrifices such as eating out less or going on fewer dates.

financial sacrifices

No pain no gain is what you get when you take out a student loan, but if you use these 15 strategies you may be able to pay off your student loan debt before you graduate!

Got a Question About a Student Loan? Check These Answers First

How Do I Find Out How Much Interest My Student Loans Are Accruing?

What Is the Average Monthly Payment for Student Loans?

How Do I Pay off My Student Loan Debt Faster?

Should I Consider Refinancing or Consolidating My Student Loans?

In Conclusion

If you’re overwhelmed by your student loans, don’t despair. There are plenty of ways to pay off student loan debt faster and start living a more carefree life today.

You can get started by following these strategies for paying off student loans as soon as possible.

You might want to check out our article on Equity Release.

References

  • www.nerdwallet.com/article/loans/student-loans/pay-off-student-loans-fast
  • www.experian.com/blogs/news/about/pay-off-student-loans-faster/
  • www.moneysavingexpert.com/students/student-loans-repay/
  • www.credible.com/blog/refinance-student-loans/pay-off-student-loans/
  • www.ramseysolutions.com/debt/how-to-pay-off-student-loans-quickly

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