Being a student is hard, but being a student with loans is even harder. If you don’t know how to get rid of student loans, don’t despair just yet. Rest assured that there are various things you can do in order to solve this pressing issue, eventually.
Paying back your student loans might take some time and a lot of determination, but the most important to start with is an excellent plan.
This plan, along with a few smart tools, will assist you in becoming debt-free. You first need to understand why and how to get rid of student loans fast.
Save Money and Pay Faster
The essential approach to saving a lot of money is paying off your loan as quickly as possible. For instance, you have a 4.5% interest rate on a $30.000 loan that you have to pay in 20 years. Based on a quick calculation, you will pay $15.550 extra interest.
On the other hand, if you know how to get rid of student loan debt fast, let’s say in just 10 years, then you will save an impressive amount of $8.240, whereas if you pay your debt off in five years, you will save $11.993. You can do this by using the services of a financial adviser, or by carefully saving money and working hard during your student years.
If you find efficient ways to quickly eliminate student loan debt, then you will be able to improve the quality of your life by making some great changes such as traveling or taking a job which will you make you happy regardless of how much money you will make.
Not paying your student loan debt can lead to severe consequences, including ruining your credit score, which means that you will have a hard time renting an apartment, among other inconveniences. In this context, we’ve prepared some tips for you, to help you with getting rid of student loans faster.
Having a positive attitude will help you face your everyday problems, especially when it comes to finding out how to get rid of a student loan.
Always keep in mind that this amount of money is needed to pay your college education, which is highly important for your future career and success. In addition to this, a strong college education will help you become a great adult who will be an example for future generations.
A person who graduates from college earns more money as well, so eliminating your student loan debt as quickly as possible has many advantages. People who successfully paid their student loans confessed how relieved they felt when they realized that they were debt-free.
Have a plan
You must have an excellent understanding of your loans to develop an appropriate repayment schedule.
- First, you need to rely on a repayment calculator (you can find one at FinAid.org) or you can use online account tools of your loan service. Calculate a monthly payment that will grant you the possibility of repaying your loan debt in a certain period.
- Every person who borrows a federal student loan receives exit counseling, so pay attention to it because it contains valuable information about how to get rid of student loans even if you are still in school.
- Focus on paperwork and every detail, read everything about the loans and the loans terms. You will probably have to face severe consequences if you don’t understand these important details. For instance, if your interest rates are fixed, you have to learn that they won’t change during the loan duration, whereas if they are variable, they might change depending on other factors.
- You must have a budget or if you don’t have one yet, then do your best to be financially independent. Based on your budget you will have a well-organized plan and getting rid of your student loans will become an easier task.
- Also, you should have an emergency fund that will play a key role in your budget. The purpose of savings is for emergencies such as an injury, health issues, car problems, and so on. Experts recommend students to have an $1.000 emergency fund, which will most likely cover other possible expenses.
Pay your loans down before graduation
- If you pay your loans while you are still in school, you will save money thanks to the fact that the interest capitalization will lessen.
- Consolidating your payments represents an important part of knowing how to get rid of student loans. In other words, you can pile up a few loans to make a bigger one. This way, you will save time and extra money as well.
- Do your best to never miss a payment, so make sure that you have a sufficient amount of money in your account. This amount is automatically deducted by the loan service from your bank account every month. This process is called auto-debit.
- Paying your loans in time might get you a discount as enrolling in auto-debit might be included in a discount package as well. This is another reason why it is important to know how to get rid of student loans faster.
- Get your employer’s assistance. There are employers who provide their employees with student loan help as part of the salary package.
Public-service oriented Programs
- If you are a government employee, you might receive even $10.000 per year to pay back your federal student loans through Student Loan Repayment Program of the United States of Personnel Management.
- If want to know how to get rid of student loans, then there is also the Nursing Education Loan Repayment Program which offers people debt repayment assistance.
- Various parts of the United States Military offer loan help programs. These Military branches are the National Guard, Air Force, Navy, and the Army.
- Teachers also have access to loan repayment programs such as Teach for America and Teacher Loan Forgiveness Program.
If you want to find out how to get rid of student loans quickly, then you should know that volunteer work will certainly come in handy. For instance, Peace Corps and AmeriCorps are probably two of the most popular volunteer programs throughout the United States, especially thanks to the fact that they offer up to 70 percent Perkins Load cancellation.
In addition to this, Peace Corps volunteers who have 27 months of service can receive a considerable award, which can help reduce your student loans faster.
Try to Pay More Every Month
In case you can afford it, do everything you can to go over than the required loan monthly payment. By doing this each month, your principal balance will lower and you will save money.
Additional tips to learn how to get rid of student loans faster
- You can’t pay more than required every month if you don’t spend less. So try to refrain yourself from some useless expenses. For example, if you drink three cans of soda daily, then drop down to two cans and even this little trick will help you put something aside.
- Try to earn more. Get a full-time job if you can. However, in case you don’t have enough time, then rely on side work such as selling handmade goods, scarves, yard work, or freelance social media management.
Last but not least, the most important tip to learn how to get rid of student loans faster is to keep a reward in the back of your head and to enjoy your college life. Dedicated people who have goals will also experience a lot of success. Plus, you can be a happy student even if you cut some costs or if you skip a few concerts.