Tips to Start Paying Back Student Loan Debt.
If you have recently graduated from college and have student loan debt to repay, you want to get started right and stay on track.
Your degree is important and will help you in your career for the rest of your life. Make a priority of repaying your loans as soon as possible so that you can complete that financial portion of your education and move forward debt free! Here are several tips from Forbes for doing exactly that.
Eliminate surprises: make sure you know how much is due.
An online calculator helps estimate your monthly repayments. Most student loans are made by the federal government, and you can use the Department of Education’s National Student Loan Data System to get details of your loan;
once you know your monthly repayments, you can figure out how to fit them in to your monthly outgoings;
Set up an automatic debit:
make sure your payments are on time and you don’t end up pay unnecessary interest. Some lenders offer an incentive to set up an automatic debit, such as a reduction on interest rates;
Read your monthly bills carefully:
as well as making sure your payments are going through and keeping track of how much you owe, they may also contain useful information;
Sign up for free reward programs:
some lenders run programs that allow students to earn cash back and pay down their debt through everyday purchases. Sallie Mae runs its own Upromise program, which also allows family and friends to funnel their rewards to paying off your loan, but other lenders offer similar schemes.
Pay back more if you can:
paying more than the minimum can help pay off the loan faster and cut the overall bill.
– via Forbes
More Advanced Tips About Paying Back Your Student Loan Debt
Here are some strategic tips that may help you speed up paying back your student loan debt. Take a look and see if any of these will work well for you.
The Truth About Prepaying On Your Loans
It is often unclear whether or not prepaying on your student loans is penalty free. Student loan servicers often list penalty free prepayment as a benefit, however this is true for all education loans. So if you have been worried about prepaying because of potential fees, contact your student loan servicer and let them know you are interested in prepaying. Make sure to be clear that you want your payments to go towards your principle and not future payments.
Why Refinancing Is An Emerging Option
Direct Subsidized Loans in the past 10 years have ranged between 3.4 -6.8%, while private and graduate school loans have toppled 8% during this period. Graduates are looking for ways to pay back these high interest rate loans and fortunately market rates have dropped to historic lows in recent years. This has enabled, banks, credit unions, and alternative lenders alike to offer low interest rates and help graduates repay their student loan debt. See if your interest rate is too high with Credilble.
How Consolidation Can Help Manage Your Repayment
A student loan consolidation can either be federal or private. A federal consolidation combines all of your federal loan servicers into one new federal servicer of your choice. Your new loan will be a weighted average of your previous loans. A private consolidation, or refinancing, will combine both federal and private loans into a new loan that is based off your financial situation. Your current loan situation will dictate which option you should explore.
– via The Huffington Post
Are you ready to start paying back your student loans?