Chances are you're regretting your choice to take out student loans. Many people do. Unfortunately, student loans are often necessary to pay for a higher education. While you could be stuck with the debt for over a decade, there are tricks to pay off student debt quickly. Let's take a closer look.
Start NOW
First things first. If you're still in college, don't wait until after you graduate to start paying on your student loans. Take a part-time job and start putting as much of your check as possible towards the debt (or at least paying cash for the rest of your schooling).
This can make a huge difference in the amount and take years of your debt. The reason is because many student loans don't start charging interest until after you graduate. This means that every payment you make will go towards the principal.
Pay As Much As Possible
No matter when you start making payments, you want to pay as much as possible. This may mean postponing some of the dreams you had of buying your first home, but it's well worth it. The more you're able to pay, the more will go towards the principal. This will allow you to pay off the loan much faster.
I graduated from graduate school with $35,000 in student loans. I wanted to get rid of those suckers as quickly as possible, so we paid as much as possible towards the loan to pay it off in two and a half years (rather than the scheduled 10 years). It helped to have a goal so we were focused on paying them off rather than other things.
Make Multiple Monthly Payments
If possible, make multiple payments throughout the month. For example, make a payment with each paycheck. Yes, this is going to eat up a lot of income, but the sooner you get out from under those loans the better. Again, paying more than what's due will allow you to save hundreds if not thousands in interest fees.
Commit to That Payment
Once you've chosen an amount to pay, you need to pay that amount each and every month. You need to be committed to that payment, even if there are things you would much rather spend the money on. The faster you get out of debt, the sooner you can start buying the things you want.
Set Up an Automatic Savings Plan
Last, but not least, set up an automatic savings plan. You can then make your payments from that account. When the money is saved automatically, you treat it like any other bill. You'll then have all the money you need to make a large payment once a month or each pay period.
Student loans can be overwhelming. However, you want to make sure you're paying as much as possible to get out of debt sooner. If at all possible, start making payments while you're still in school. This can make a huge difference in the amount you'll have to pay back.
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