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Tips to Paying Off Student Loans Faster – 10 Fast Ways

August 27, 2011

Paying Off Student Loans

Student loans are known for being things that just never go away, for some people, they are like the stink on their feet, they will always be with them! But the below information will expose some loopholes in the system to use for paying off student loans a lot faster and be done with it for good. Read on to find out 10 methods to use to knock out your debt in record time.

Paying Off Student Loans

Paying Off Student Loans Faster – 10 Methods

  1. Don’t settle for your first job offer is the next way you can use to paying off student loans faster. If you can wait it out to getting a job that pays you a couple extra thousand a year, you can put that extra money towards paying off student loans a lot faster.
  2. The next way to pay off student loans faster is to keep living like you are in college. Being that you are just out of college and are still in the “college living” mentality, where buy the cheapest items, this can help you save money to pay your loan off much faster, enabling you to enjoy the good things a lot quicker since you will be out of debt faster.
  3. Student Repayment Calculators are an excellent tool to use when setting out to find ways of paying off student loans much faster. They can essentially let you view how fast it will take you if you up the monthly payment, as well as show you how much you will save in interest by paying a higher monthly payment, and also let be a resource you can use when doing monthly budgeting to make sure you have enough for your loan payment each month. Being that we are on this option, paying higher than the minimum is one of the best methods to paying off student loans. To do this the right way, you want to pick the shortest loan repayment program that you can afford.
  4. For all of you students who have loan programs where they are required to pay interest while in school, pay this interest to avoid both paying it later as well as compounding interest.
  5. If your repayment program will allow you, pay in the form of bi-weekly payments. This works awesome when it comes to paying mortages off fast and can work just as good with your student loan. This will both save you money on your grand total as well as what you would pay in interest because paying bi weekly offers less time for between making your payments for the interest to accumulate as well as up your annual payments to 26.
  6. Consolidation of student loans is another way of paying off student loans at a much quicker rate as well as provide you a less stressful payment plan, being that you only have to pay one lump total to one company. With this option, be sure to make sure that meet with a counseler to check if consolidating your loans will save you money, because this plan can actually end up costing you more if you aren’t careful.
  7. Transferring your debt onto a credit card with lower interest is another way you can you to pay off your debt quicker.
  8. Pay your private loans off first, if you have any. These programs are known to have much higher interest rates compared to that of federal loans. You can focus on paying them all off at the same time, but if you have any extra, always put it towards your private loans.
  9. Paying off student loans faster can also be done by saving for retirement. Yes I know this sounds weird, but those who save for retirement are rewarded in the form of tax refunds, which you can use immediately towards your student debt.
  10. One more paying off student loans faster method is that many loan providers have what is called “loan forgiveness” programs which you can go through which will forgive, or in other words, allow you to not have to pay a large portion of it by doing public service jobs. Basically with this option, you work at a job for 10 years, or for 120 months of payments, and at the end of this time, the rest of your debt will be wiped clean, no matter how much is left. These jobs can include working in places that education or the certain trade is needed most like low income, joining the army or a program like the Peace Corps, among many others. The best way to find out about these programs is to inquire about it through your loan provider(s).

Paying Off Student Loans – Conclusion

This may have been a lot of information to take in, but you ought to know many ways when it comes to paying off student loans faster so that you can use as many as possible and knock it out faster than you may have ever thought. Hopefully this paying off student loans list helped you immensely and it is exactly what you need to become debt free fast.