Are you struggling to pay off your student loan faster? Well, you are not alone. Over 44 million Americans today owe over $1.5 trillion in student loan debt, and this figure is still increasing.
Student loan debt can be quite intimidating, but you don’t need to worry about paying it off. You can use some strategies that will help you pay it off fast and without going broke.
If you’re one of the millions up to your ears in student loan debt with no hope, discover how to pay off student loans fast.
- Try Splitting Your Payments in Two
This is an easily manageable payment method if you have a relatively low income. To pay the loan more quickly, you can divide your monthly payment into two.
For example, you can make one payment in the middle of the month and the other at the end. You won’t feel the pressure of paying a lump sum amount at the end of every month.
- Refinance Your Loan
This works well if you have a steady source of income. You can take a new loan to finance the old one.
This works well if you want to achieve a new term length or you want a lower interest rate.
This could also apply to students as well, especially if you’re doing your masters or taking another degree.
You can apply loans for students and pay the old one as you continue with your studies.
- You Can Turn Windfalls into Extra Payments
Making extra payments means you will be paying more than the minimum payments.
Paying more wouldn’t sound like realistic advice to you, especially if you are struggling financially, but this method can help you pay off the student loan fast.
How does this work?
You can sacrifice your tax refunds to pay the loan or direct your annual bonus from work towards servicing the loan.
This is a guaranteed way of clearing that debt fast, and at the same time, you will save on interest.
- Volunteer
If you don’t have a constant source of income and you buried in student loans debt, how about volunteering?
Some organizations offer assistance in student loan repayment and in exchange, you have to work on their nonprofit projects.
However, these organizations have strict guidelines which you must adhere to. You also have to complete their programs successfully to qualify for your student loan repayment assistance.
- Make a Lump-Sum Student Loan Repayment
This might sound unrealistic, but it’s a fast way to repay your loan. You might receive an inheritance, a huge tax refund, work bonuses or even win the lottery.
How about you pay off the student loans instead of taking an extravagant vacation?
Seek Financial Advice on How to Pay Off Student Loans Fast
Before you make financial commitments, consult with financial experts on how to pay off student loans fast without going broke. This will help you manage your finances wisely.
