As an 18-year-old college student, getting student loans seemed like a great idea. As a 25-year-old, you may have a different opinion.
For some, getting student loans is unavoidable. But, in hindsight, many student loan recipients wish they would have taken fewer loans or no loans at all.
No matter what your circumstance, you can pay off student loans fast. At the very least, you can pay them much faster than just paying your bill once a month.
Before you begin paying off your loans, speak with your loan servicer to learn more about your debt. Review the loans you took out and see what the interest rates are.
It’s wise to pay off the loans with the highest interest rates first. You should also consider paying off the smallest loans first. Doing so allows you to avoid paying more interest over time.
Ready to learn five secrets to pay off student loans fast? Read on to find out.
1. Go Beyond the Minimum Payment
If you want to pay off student loans fast, pay more than the minimum payment.
First, check out your budget and see how much cash you have to spare. Then, decide on an extra amount to pay towards your student loans.
Even just $20 or $50 will do the trick.
2. Get a Side Job
Many of us don’t have extra income to allocate towards our student loans. So, if you want to pay off your student loans fast, then getting a side job is a great solution.
Consider having a garage sale, selling items online, or working a part-time job.
You could also consider becoming an Uber or Lyft driver.
To make sure your side job lasts, make sure you enjoy it and that there’s a market for what you’re selling.
3. Consider Loan Forgiveness
Loan forgiveness is available in certain circumstances. One way to get loan forgiveness is through the public service loan forgiveness program.
This program allows people with various public service careers to receive loan forgiveness after working for 10 years.
Check with your loan provider to see if you qualify for a loan forgiveness program.
4. Divide Your Payment
Dividing your payment into two will help you to pay off your loan faster. This will also help you to balance your budget.
So, how does it work? Normally, you would pay 12 payments per year. But, since you’ll be paying every other week, you will end up paying 13 payments each year.
5. Refinance and Consolidate
Lastly, you should consider refinancing and consolidating your student loans. Consolidating your student loans means your loans will be made into one lump sum.
If you want to go this route, it’s important to do your research. Ensure that you’re getting a lower interest rate when refinancing, so more of your payment will go towards the principal.
Pay off Student Loans Fast and Move on with Life
Once you pay off student loans fast, you can set new financial goals. You can start thinking about buying a house or starting a business with the extra money you’ll have.