If you been a student then you would have known that is very difficult to pay for the colleges and universities. So many people tend to go for loans in order to complete their education, although these loans have less restrictions than the others but still it is a loan and it can cause you a headache at times. It becomes difficult at times to handle these debts and if you are unable to pay for some months it becomes difficult to handle at large amount of debt.
According to a report of CNBC, it is revealed that 43 Million American has a student loan debt of $1.6 trillion dollars roughly and on average it becomes $36,000 for a single graduate. These loans are a big burden at you at the start of your carrier. So you should plan it correctly and work hard to pay it off quickly. There are some ways through which you can pay it quickly and today I am going to share some of these with you. It takes hard work and determination if you want to get rid of these debt. You need to be patient on this path because this cannot be done in a single night. So let’s start with the plan and get rid of this debt. Below are the tips that will help you on your this tough path and will make it a smother one,
1 Manage Your Finances
Most of times, people are in multiple types of debts and there are different types of student loan debts that people take at the same time. The peoples take more than one student loan debt at a time and this debt could be the federal one or the private one. Whether the case with you, if you have multiple debts at a same time then it becomes very difficult to handle them at the same time as each has its own payment method and due date. So firstly, you need to manage your finance in a better way.
You should put together all the loans at the same time on a piece of paper. This simple step will help you to know who much in total you owe and you can write all the information about the due dates, minimum payments and interest rates at a page so that you can assess your debts in a better way.
Combining all the debts in to a single place can help a lot in many ways. When we have combined all the student loan debts in to a single account then it is easy to pay for them each month and that means our credit score will remain unaffected so there are chances that you might get any favors from your l ender. Also it will help you to manage your debts in a very organized way and this goes for every other debt in the same way.
One of things you must do here is to set up auto pay options. Setting up auto payments will help you to not miss a payment and you will maintain a good credit score while you will be paying on time. To set up auto payments to lenders you will have to contact your bank or your service provider. This tip is simple but following it will make your life easier.
2 Refinance Loans
This is the part that most of the people miss and end up paying a very high interest rates for years. There are many companies that help people to refinance their debts on lower interest rates. It comes with many benefits as you will save hundreds of dollars every month and you will also get a lower interest rate with a lower payment option. If you want to pay your debt fast, then pay the amount of money that you were paying to the higher interest after you have refinanced your debt because it will help you get rid of debt quickly.
One of the thing that might help you is that when you are refinancing your debt look for a co-signer. A co-signer may be your spouse, parents or a friend that is asked to pay the debt as you are asked by the lender. They can pay on your behalf and by having a co-signer will help you to get lower rates and payment options for refinancing. You can also get some good refinancing programs if you have a good credit score with a stable job.
Keep in mind that every time you look for a refinancing option, always go for short term plans because this is the only way to get your loan paid quickly, if you go for a longer term plan than the continuous one then you will end up losing your money.
While you want to refinance you debt, make sure you do it for your profit and it will be helpful for you if you have a private debt because most of the times federal loans offer access to loan forgiveness plans and income based payment plans. If you refinance your debt you will lose your chances of getting these offers. Make sure you assess your situation well before you decide to refinance and if you are looking for some options then some of these are Sofi, CommonBond, LendKey, Earnest, Credible, Purefy and Citizens Bank.
3 Loan Forgiveness Program
If you have Federal student loan, then you got some chances of getting rid of it without paying it further. There is a program named as Public Service Loan Forgiveness (PSLF) that helps people who are working in the public sectors on lower pay and with a student loan to get rid of it. This program motivates the young graduates to work in low income public service jobs that are important to the society. These type of services are provided for the people to stay in these public sectors job and after the approval of your loan forgiveness and it is up to you whether you want to keep the job or not after the approval. If you successfully qualify for the program, all of your remaining debt amount will be forgiven, that means no more debt.
This program has certainly some requirements that you need to fulfill, if you want your loan to forgiven. Firstly you need to work in a public service jobs offered by state, federal or local government. If you work in a Nonprofit Organization, you can still qualify. For example jobs like law enforcement, public health service, firefighter, biologist and public education can get this service easily. You can ask your HR department for further details. Second requirement is that you should have paid 120 payments from that job which qualifies for the loan.
There are many other programs that can help to like the military service loan forgiveness and the Teacher Loan Forgiveness Program. Both of these programs refers to a specific field of job. The best program among these is the Public Service Loan Forgiveness because it covers a lot of jobs and fields and you must keep a check on this type of program because it can help you go debt free. If you stay in a public service job it can pay you off well.
4 Your Employer
Your employer could be the place to help you get rid of debt. As there are companies that allows their employers to pay for the school/college. This can serve as a good option to avoid the debt but as you are already in loan then you are hunting for a method to get rid of it quickly. As in the Public service job you can get loan forgiveness programs, this can be the same with some private companies. These companies offers Student Loan Repayment Plans that can help you get rid of the debt on the first place.
Not all the companies offer this program but some of them do offer and it is worth it. So you should look in your HR department for more details on this program and if you have one then this will work out the way you want.
5 Make More Money
If you cannot find a way from the above mentioned tips then you might need to consider the traditional method and that is to make more money. You will have to find ways to add extra income in to your account every month so that you could pay more to your lender. With your primary job you can simply take some side hustles or a part time job that can bring in some amount of extra cash. Adding a little more every month in the debt payment can make a significant change in your total debt. By this you will be able to finish your debt quickly. There are many side hustles and getting them is not a difficulty anymore.
So these are some of the tips that can help you to get rid of your student loan debt quickly, please check out how to get student freebies which can also help you. Do comment in the comment section below and let us know if you have any queries regarding the methods I have described.