Student loan debts can be a huge financial burden, especially for new graduates. But there are ways to pay them off more quickly and reduce the amount of interest you pay.
In this blog post, Your Debt Expert share with us their top tips for graduates looking to pay back their student loan debts. From providing everyday budgeting advice to delivering the latest debt solutions such as IVAs, Your Debt Expert helps hundreds of people beat debt each year.
Check out their top tips below:
1. Know what you owe
The first step to paying off your student loans is understanding exactly how much you owe. This may seem obvious, but it’s important to know the interest rates and repayment terms for each of your loans. You can find this information on your loan servicer’s website or by contacting them directly.
2. Make a budget
Once you know how much you owe, it’s time to make a budget. You need to figure out how much money you have coming in each month and what your regular expenses are. This will help you determine how much you can realistically afford to put towards your loans each month.
3. Prioritize your loans
If you have multiple student loans, you may want to consider prioritizing which ones you pay off first. Typically, you’ll want to focus on the loans with the highest interest rates. Paying off these loans first will save you money in the long run.
4. Automate your payments
One of the best ways to stay on top of your student loan payments is to set up automatic payments. This way, you don’t have to worry about making a payment each month. Your loan servicer will automatically deduct the amount from your bank account.
5. Make extra payments when you can
If you have some extra money each month, you may want to consider making a larger payment on your student loans. Even a little extra can make a big difference over time. You can also make additional payments when you get a bonus or tax refund.
6. Refinance your loans
If you have student loans, one way to save money on interest is to refinance your loans. This means taking out a new loan at a lower interest rate, which can help you save money over time and pay off your loans faster. To qualify for a lower interest rate, you’ll need to have good credit. If you don’t have good credit, there are still other ways to save on your student loans, such as extended repayment plans or income-driven repayment plans. Talk to your loan servicer about what options are available to you.
7. Consider Student Loan Forgiveness Programs
There are a number of Student Loan Forgiveness Programs available that could help you get rid of your student loan debt. These programs are typically offered to people who work in certain public service or non-profit jobs.
8. Get help from a Financial Counselor
Student loans can be a huge financial burden, and it can be tough to know what to do. That’s where financial counselors come in. Financial counselors are professionals who can help you understand your options and create a plan to get out of debt. They can also provide support and guidance as you work through your repayment plan. If you’re struggling to manage your student loan debt, getting help from a student loan counselor may be the best decision you can make.
With these simple tips, you can take control of your student loan debt and get on the path to financial freedom.