5 Tips For Paying Off Your Student Loans
Stress less. Save more.
As much as we like to tweet and poke fun at it, the reality of student loan debt in the US is more than a little concerning. About 44.7 million Americans have student loan debt, so you’re definitely not alone if you’re still working on paying off those college loans. Tackling debt can be daunting, so here are a few tips to help you get debt-free faster and save money in the process.
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1. Make it a habit to put extra cash towards your loans.
Maybe your grandma sent you some sweet birthday money, or you got a little lucky with a scratch-off ticket -- there are all sorts of ways you might run into extra cash throughout the year. Make it your first instinct to put that money towards your loans. It might not feel like you’re treating yourself in the moment, but you’ll be hacking away at your debt bit-by-bit. If you need a little more motivation, use a repayment calculator to see the difference.
See the math (and the savings).
2. Split your payments biweekly, not monthly.
No, we aren’t asking you to pay double the amount you usually do each month. Just take your monthly payment amount, split it in half, and pay that every two weeks. This may not sound like it would make any difference, but the math adds up. Going biweekly gives you 13 payments in a year (one more than the usual 12 monthly payments), and that means you’ll be paying off your loans faster and saving money without even really feeling it.
See the math (and the savings).
3. Work for a company that helps you pay your loans.
Because student debt has become such a prevalent issue, more and more companies are attracting employees with student loan repayment benefits. Some provide monthly or yearly amounts that can be added to your payments, and others will help you pay for tuition and skip the loans altogether.
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4. Find a side gig.
The nice thing about having a side hustle is that they tend to be pretty flexible, and there are tons of ways to make money in your spare time. No need to aim for big bucks. Just do what you can, when you can, and those few extra dollars from the occasional eBay sale or Postmates delivery can make a surprising difference.
See the math (and the savings).
5. Target the highest interest first.
Quick note: this assumes that you have more than one loan (and most people do). With the so-called “avalanche method,” you focus your extra payments on the loan with the highest interest rate and pay the minimum on the rest. Once it’s paid off, start on the next highest. By getting these out of the way first, you save on interest payments. Plug your own loans into this calculator to get it all laid out for you.
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