How to Pay Off Student Loans Fast?

How to Pay Off Student Loans Fast?

Revised on August 16th, 2011 at 10:26 am | Financial Aid Counselor | Article of: Student Loan Payments | Resource for: |

Nobody wants to be in debt; but there are important things in life that carries more value such as college education. Among all types of debts, money borrowed as a college student loan is the best one since it will eventually help you pay it back as well as make higher income later. Even though student loans may have lower interest rate, the principal balance will not go down much if you make the minimum payments. That’s why many financial experts recommend paying off college loans quickly.

Ways to Pay off Student Loans Fast and Early

Consolidate them all: unless you are really good with managing your money and have plenty of time to go through every single loan, the best way to start paying off student loans fast is to sign up with a loan consolidation company. They do charge a small fee, but they will simply make your life easier. This will save you from getting constant headache every month when loan invoices shows up in the mailbox.

Use loan repayment programs: just like government helped you during the school to get loans, they will also help you make payments. There may also be many programs by your school and community to help student repaying loans. These programs may not actually pay cash for you, but they will definitely provide you guidance that will enable get rid of student loans early.

Negotiate with lenders: this is probably the most effective way to pay off your student loans quickly. You can negotiate to lower interest rates, not charge fees for early payments, discounts for making payment online, and many more. Before you call your lender, write down things you want to negotiate such as the ones we just listed. This way when you talk to their agent, you can confidently ask for these one by one and not sound confused.

Pay off maximum: the best way to pay off college loans early is to pay as much as you can; this means paying far more than the monthly minimum. There are many things you can do to make that possible. For example, save money on groceries with coupons, car fuels by driving less and walking more, and cancelling cable for a time being and using internet to watch your favorite shows. The trick is to make your life as less miserable as possible while using all the money you saved to pay extra every month.

Spend less and earn more: Where else can you bring the extra money to make extra on student loan repayments besides spending less on needless stuff? You can also work over time or find an extra job to bring home some extra cash. Sell unwanted items such as clothes that you don’t wear, video games that you don’t play and music CDs you don’t listen to, and anything useless in your apartment. Postpone plan to buy a home right now. Just hold off to big purchase and you can even move back to your parents to save on rent.

Lower your interest rates: Not many student loan lenders will lower your interest rates, but some may budge if you explain your situation. You can even ask them for things that can help. Lowering you interest rates has the most impact if your student loans balance is high. These tips will help repay fast.

Get that Recruitment or Enlistment Bonus: If you have a special skill, there are employs that will pay bonus for joining their company. Military has been offering enlistment bonus in thousands of dollars for new soldiers. Ask your current and future employer about reimbursement for college student loans; it doesn’t hurt to ask.

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