Do you remember your first student loan payment? It must be a doozy, to say the least. It was also a wake-up call that you just need to make some changes if you want to get out from under the weight of your debt in a few years. These six steps will help you save money on interest payments and pay off your loans faster than ever before. Check below for how to get out of student loan debt tips:
Pay more than the minimum
If you’re like many people, your student loan debt can feel overwhelming. The good news is that there are steps you can take to lessen the burden of repayment. One of them is paying more than the minimum amount due each month.
If you pay more than the minimum amount due, it will help reduce your principal balance faster and lower your monthly payments. In addition, having a lower balance means that less interest will accrue on future payments—which ultimately leads to paying off your student loans sooner!
Look into refinancing
You can also look into refinancing your student loans to lower your monthly payments. This is an excellent option if you have high-interest debt because it allows you to consolidate multiple loans and get a lower interest rate.
The process involves applying for a new loan with one of the major private lenders of student loans or with a bank or credit union (depending on your credit history). Still, there are lots of factors that go into determining whether they’ll approve you. For example, “If refinancing is something you are looking for, consider SoFi” experts.
Put extra money toward your loans
The first thing you can do to pay off your student loan debt quickly is put extra money toward your loans. This is called a lump sum payment, which can be the difference between having debt for years and having it paid off in months.
You should start by paying off the loans with the highest interest rates first. The more you pay on those loans, the more time and money you’ll save in interest payments down the road—which makes repaying those loans even easier!
Another thing you can do to get rid of that debt is to use a student loan calculator (like this one) to see how much faster paying more than just the minimum each month will help you get out from under your student loan burden.
Look for work with student loan repayment benefits
Several jobs offer student loan repayment benefits, including positions such as those in the healthcare, education and public service sectors. In addition to these areas of work, other industries can help you get your student loans paid off faster by letting employers pay a portion or all of your student loan debt. One example is military service, where some branches provide this benefit for their service members.
Enroll in autopay
Setting up autopay is the best way to stay on top of your student loans. This way, you’ll never have to worry about missing a payment and paying late fees. Automating payments also helps reduce the chance of falling behind on your loan(s).
They’re just the beginning, though—it’s important to remember that many other resources can help you make smart choices about repayment. Of course, you should always do research before making any big financial decision, but in this case, it could save you years of financial pain.
