Paying Off Student Loans: 7 Ways to Make the Seemingly Impossible PossibleAnna Newell Jones
Paying back student loans can be a completely daunting process. The total amount due is usually so high that it seems like it is impossible to actually make any real progress on. I actually thought I would die with my debt, so I got to the point where I said, “Ah, screw it! I might as well enjoy myself!” Guess how that turned out? Not very well… it took some drastic measures (namely implementing my Spending Fast plan) for me to get real about my student loans and actually get them paid off: something that I previously considered an impossibility.
Since I found my way out of my student loans, I’ve got a couple of tips for you. You really want to payoff the bills ASAP so that you ultimately end up paying less in interest.
Getting those student loans paid off is possible! Here are 7 simple tips for tackling student loan debt…
Paying Off Student Loans: 7 Ways to Make the Seemingly Impossible Possible 1 of 8
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Review Your Loans 2 of 8
At the time you applied for and received your student loans, you may not have understood much more than having tuition. Take the time to understand your loans, how much they are, and what the terms are for each loan.
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Restructure Your Budget 3 of 8
In order to figure out how much you can allocate to your student loan repayment, you need to understand your income and expenses. If there doesn't appear to be any â€˜extra' cash to put towards your loans, make some budget cuts and put as much as you can reasonably afford toward your student loan debts.
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Start Early 4 of 8
If it's possible, start paying student loans while you're still a student. It may require extra discipline to dedicate cash toward your loan, but you can reduce your balance by paying down the principle amount due before interest begins to accumulate.
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Try a Consolidation 5 of 8
Speak with your loan providers about a consolidation. It may be easier for you to make just one larger payment a month rather than several. A consolidation of your loans may also change loan terms by increasing your loan term or reducing your interest.
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Look into Assistance 6 of 8
There are some employers that offer student loan repayment assistance. It will depend on your chosen profession and your specific employer, but be sure to ask about any loan repayment incentives included in your current job or during your job interviews.
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Pay Every Two Weeks 7 of 8
Rather than pay your loan bill one time each month, schedule a payment every two weeks. By doing your repayments this way, you naturally will make additional payments in a year's time than if you stick to just once a month payments. If your total loan payment that is due each month is $300, plan to pay $150 every two weeks.
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Tack on a $20 8 of 8
If you cannot afford to pay a ton of extra cash towards your student loan debts, commit to adding just $20 bill a month to your payment. This is a generally reasonable amount to part with over the course of a month, but can help you repay your loan several months or years early.
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