For most people, college doesn’t just mean getting a job. It also means paying off student loans. If you’re in the same boat, here are a few tips to help you out:
Pay more than the minimum
Going beyond minimum payments is the best way to reduce your debt. Figure out what the maximum allowable amount is that works for your budget and start with that. With larger payments, you could pay off the loan sooner, which means you get to save on interest as well. If the idea of shelling out for more than you should when it comes to interest doesn’t appeal to you, then this is an excellent financial strategy to follow.
Go with the federal repayment plan
Real Simple says there are plenty of federal student loan repayment options you can explore. From Stafford and Perkins to PLUS and Direct Consolidation loans, you have 5 repayment plan options you could choose from. If you qualify for the loans, you could get as much as 85 percent off your student loans. Not sure how to apply for one? Consult with organizations that can help you choose and apply for the student loan repayment options that are right for you.
The best way to pay off your student loans is to save. Avoid the usual money traps. You could get huge cost-savings if you skip those coffees at Starbucks and pack your own instead. Start cutting down on costs by preparing your own food at home and bringing that along to work or school. That should help you save up on costs and set aside enough to build a repayment fund.
There are plenty of ways you could repay your student loans. Explore each of those options, especially federal ones. If you’re a nurse or teacher, you could also qualify for debt relief programs. Find a company that can help you through the selection and application process to get you started.