Top 6 Ways To Pay Off Student Loans
Student loans can be a pest at times. After sacrificing multiple hours of school you are left with a degree and a pile of student loans. Over 44 million borrowers owe more than 1.4 trillion dollars in student loan debt. Getting student loan debt under control can be very simple if you are willing to put in the effort. Even if you can’t pay off your student loans in your current situation there are ways to reduce the burden on you.
1.Apply for loan forgiveness.Many people are unaware that loan forgiveness is a real thing. Public loan forgiveness and teacher student loan forgiveness programs are available for individuals that are eligible. Many times these programs have requirements that must be met like making over 120 on time payments before becoming eligible.
2.Refinance student loansWhen it comes to dealing with loans overtime you could pay more money when you have a high interest rate. A solution to minimizing your interest rate would be to refinance your student loan. Refinancing your loan will help you pay off your current loan with a lower interest rate making it affordable for your budget.
3.Make lump sum paymentsYou may want to use your tax refund to go shopping, buy new furniture, or a vacation. This year instead of blowing through your refund take a lump sum and pay off some of your student loan debt.
4.Pay more than the minimum amountPaying more than the minimum can help you reduce the amount of interest accrued on your loan. In reality you will end up paying less money for your loan when you increase your payments.
5.Make an extra student loan paymentMaking an extra student loan payment is one of the best & fastest ways to pay off your student loan debt. If you want to begin making extra payments contact your lender, and notify them that you would like to start making additional payments throughout the year. Specify that you would like to make an extra payment to your principal amount only to reduce interest.
6. Request a consolidationRequesting a loan consolidation simply means combining all of your student loans into one single loan and one single payment. In most cases, this option can lower your interest rate as well as lower your monthly payments by almost half. This can shorten the length of time that you pay on your loan and can also save you money.
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