Being able to pay a student loan is not an amusement and may impair your college time heavily. According to the scholarship statistics, many students graduate and still have a big debt in their loans to pay off.
Being in such big debts situation might seem to last forever, and it is depressive at the same time. But the good news is that you can manage and change this situation by developing a strict and disciplined strategy about your payments.
These few tips should help you pay off your student loan faster and smatter:
Endeavor to make larger payments every month
Anybody in the field of finance or investment will always tell you that paying a larger sum every month will help cut down the total repayment. Count!
For example, a $12.500 student loan with 3.4% and a 5-year payback period will cost about $144 a month. Spending about $700 a month instead of $144 will allow you to close your debt just for a period of three years! Great job and now you just need to think about how to find such an income every month.
Another more useful tip is for you to send payments more frequently than once in a month – for example, every two weeks.
Start with a part-time job
The moment you find legs in your student’s schedule – just think about finding a part time job. Do not be afraid that the work will take all your spare time that might be spent on doing homework or other activities.
Starting work from the very beginning of your studying is a very good way to raise money to pay off your student loans. Make it a habit to work all the time but not very hard – a few hours a day will be quite enough.
When you are so busy and tired, do not hesitate to get help from a side of professionals or friends. Who can help? Who can write your essay or help you to study out on a subject. Find the company or an employer, which will help you to reduce your credit limit. Few companies offer year contribution to take part in student’s paying down the debts.
As a useful bonus, once you are done paying off all the debts is the habit to earn money, now you are free to invest them in your house, traveling or whatever you wish!
Keep record of the last day of your payments
Try and imagine this day. Just close your eyes and think about it! Isn’t it great? You owe nothing, and this is such a great feeling of freedom and belonging to yourself only.
Now let’s be a little more practical. All you must do now is to count the day of acquaintance with paying a certain minimum sum every month. It is much easier to have in mind a certain amount for a month and having a certain goal and commitment to finish it.
Maintain a goal, never waste money
We all know that the challenge students face while trying to pay student loans quick and well-timed is a new tendency of “living for today” and “living in the moment.” The question is very disputable.
Is this “instant gratification” from buying some clothes or eating in a restaurant, going to a party as sweet as it seems from the first side? Don’t you feel a slightly bitter aftertaste of a burden that now is a little bit further? All we propose is to take it into consideration.
Have a separate account for your loans
Creating a separate account for reducing your credit limit. will automatically prevent you from unnecessary, wasteful spending of your money that is described in a previous step. And this is one the most working of all existent smart ways to pay off student loans.
You can make it a rule – the certain sum is always paid over,and you can count on this money under any circumstances. Treat these funds as if they are not yours anymore – and it will be easy to refuse them.
Don’t close your eyes at your loans
Instead of wearing the rose-tinted glasses, be aware of your commitments and sick for practical ways to help you pay off student loan. Do not be scared of this and just stick to your plan. Make little sacrifice by living with your means for today and focus more on your future.
There are many other ways to pay off student loans – like refinancing or reducing your interest rates – some loan serviced will give such service only when you sign up for automatic payments. It won’t be a huge sum saved (around 0,25 %), but it is still help.Plus, it is one thing less to bother about every month.
We hope that the tips we have provided will help you to raise money and to get rid of student loans forever!