Student Debts

How to pay off your student loans faster?

In our everyday lives, we hear the stories of many individuals being stuck with their student arrears.  The research shows that the student debt exceeds the car advances & other unsecured bills, including the credit card bills, by $ 1.6 trillion. This is one of the biggest crises, not only for the graduates who fall behind their repayment schedule & monthly payments but even for lenders, who have to face increasing default rates. It’s also a crisis for the government that provides a guarantee for these loans.

Defaulting on student loans can have serious repercussions. It may damage your credit score, making it challenging to purchase a home, buy your dream car, or even rent an apartment. Moreover, it may also increase the total amount owed through the addition of penalties.  Therefore it’s crucial to find ways to get rid of student debt.

Strategies to eliminate your student loan faster

It may be a big shock for most graduates to find out how much money they owe when they finally end their college. It may prevent you from realizing your dreams as it takes out a big chunk of your earnings. And hence, it’s essential to tackle the student loan debt as soon as possible.

In this section, we’ll explore the best strategies to deal with student debt in a smarter, faster, & cheaper way.

  • Make payments in the grace period

After you finish college, your creditor might grant you a grace period, where you don’t have to make any payments for the settlement of your dues. But, you must avoid being tempted by this option. If possible, you must create a plan & start repaying immediately.

  • Understand your debts

The foremost step in dealing with your obligations is to be familiar with what exactly you’re dealing with. It’s very easy to make minimum payments without giving it a second thought. However, to come out of the problem, it’s essential to understand the working of your loans.

Therefore, you must find out your loans & payment options. Moreover, you must also go through the details to tackle them in a better way.

  • Select the best repayment plan

You should choose the best payment plan, like income-based repayment. The program allows you to decide your installments based on your current discretionary income. Your monthly installments will increase with an increase in your income. Further, if you make timely payments for 30 years, the remaining amount will be forgiven. You can also explore consolidation options if you’re unable to track your multiple bills at a single point.

  • Take advantage of Loan forgiveness programs

There isn’t any better way to settle your outstanding balance than having them terminated. For instance, you’re eligible for a program to get your outstanding balance forgiven after five years if you’re into a teaching job. Similarly, if you work for government or non-profit organizations, you may qualify for forgiveness programs.

  • Take on a side hustle

You must take a second job if you’re devastated by your obligations. However, don’t just take any other job that comes your way. Instead, look for the one that’s worth your time & allows faster settlement of the amount you owe.

Don’t deal with your student debt alone

Student debt can be a huge burden right from the very beginning. Hence, the immediate task is to find relief from the crisis in the shortest possible time. So, if you’re looking for ways to get some relief, you must speak to an experienced counselor. You can contact us if you need assistance in finding the best counselor.