Student debt can be a heavy burden that can hang over your head for years. Luckily there are some things that you can do to pay those loans down faster! Today we will go over some helpful tips that can get you started.
1. Plan a budget
The first step in paying off your student loans is to create a budget. Following a budget will allow you to know just how much extra money you can afford to pay each month. A budget will also keep you on track and make you more responsible with your money. It is always a good idea to research useful tips for budgeting on financial websites. 24Cash is a great example of resources you can use.
2. Start an emergency fund
Before you can start paying extra money towards your student loans, you should start an emergency fund. This will cover any unexpected bills that may come your way and keep you from getting further into debt.
3. Make payments while still attending school
A smart way to pay down your student loan faster is to start making payments on them while you are still in school. Working a part-time job if your schedule allows will provide you with some extra money to put towards your student debt. This will help you pay down your loan faster, and you will have less to worry about when you graduate.
4. Volunteer your time
Another great way to pay down a large portion of your student debt is by doing volunteer work. Some non-profit organizations will put money towards your student debt and some even offer scholarships. While you won’t get paid to do volunteer work, you may be compensated in the form of student debt relief.
5. Make bi-weekly payments
Instead of paying your student loan once a month, try to make a payment every other week. Over time this will help quickly reduce the amount of student debt you owe. In fact, making bi-monthly payments can cut your repayment time in half.
6. Cut down on spending
If possible cut down on spending money on things you don’t need. For example, instead of going out for dinner every night, cook at home. This will free up some capital that you can use to pay off your student loan.
7. Ask for cash instead of gifts
Many of us receive gifts from our friends, parents, and other relatives. Instead of them getting you a gift for your birthday or graduation, ask them for money instead. To do this in a polite manner write a nice letter to each of your loved ones, and let them know you would like money instead of gifts. Make sure to include the fact that you will be using the money to pay down your student debt.
These are a few proven ways to pay down student debt faster. If you use a few of these tips, you will have less to worry about when it comes to owing money after graduation.
For more great college tips, check out the other blogs on College Basics.