Does the thought of paying off your student loans keep you up at night? There are alternative ways to pay off student loans! No one wants to live in debt. But as student loans are unavoidable, the best thing to do is to figure out realistic and manageable ways to pay them. Paying off student loans is possible with these practical tips. Check out these hacks!
Paying off Student Loans Through Smart Money Management
1. Borrow only what you need
You don’t have to stick to the student loan plans being offered to you if they are too generous.
Before borrowing, project your expenses and the amount you will need, and discuss them with your student loan servicer so you can come up with a plan that fits your needs and means.
Create a realistic long-term plan that will guide you in borrowing and paying off your student loans, and stick to it.
Knowing the recent developments in the Trump administration can also help you plan for different possibilities.
2. Determine how much you owe
— Atlantic Bay (@AtlanticBay) April 20, 2017
It is always better to know what you are faced with so you can prepare for it properly.
When you know how much you owe, you can put your priorities in perspective and be wiser in handling your finances.
You will be able to set a more accurate timeline for paying off your loans once you figure out the amount you need to return.
3. Grab opportunities for savings
Did you know that your interest rates can be reduced?
For instance, for those who availed federal loans, 0.25% of your interest rate can be slashed when you have your servicer deduct your loan payment monthly directly from your bank account.
Finding opportunities that can reduce the amount you pay for student loans, no matter how small or big, will be of good use to you in the long run.
— Forbes (@Forbes) June 1, 2017
4. Cover your loans through your paycheck and benefits
Getting your first job offer after graduation is an exciting moment. But don’t forget to consider your expenses—particularly your debts—once the offer comes.
When negotiating your salary and benefits with your prospective employer, politely ask for a rate that will cover your necessities (that includes your loan payments).
Don’t be afraid to ask if they can help you with your student loans by diverting your incentives and bonuses to your lender so you can pay them off more efficiently.
5. Budget your finances wisely
— Daily Markhor (@DailyMarkhor) June 6, 2017
Keep in mind this hierarchy when it comes to funding allocation: essential expenses, savings, emergency funds.
Always have your student loan debts in your list of essential expenses until you have paid them off.
The amount you spend for your essential expenses will affect the amount you can put in your savings and in your emergency fund (a.k.a. extra cash), so make sure that you include only what you need, such as expenses for rent, utilities, food, and clothing.
(Bonus Tip: Liking these tips so far? Take 10 more for free! The Ultimate Student Loan Resource Library has 10 of the most important things to know about student loans so you can pay off your loans the smartest and easiest way possible. Click here to learn more and to get the free guide.)
6. Live frugally
Which leads us to this point—live within your means.
Evaluate the things you spend on.
What should you let go in favor of your basic needs and student loan debts?
Remember, you should never neglect taking care of yourself. And you can still indulge yourself from time to time, as long as you limit your expenses to the amount of extra cash you can spend.
7. Work in public service
The Public Service Student Loan Service (PSLF) grants federal loans.
Student borrowers receive the opportunity for debt forgiveness when they work in the public sector.
This is also a good consideration, especially for college graduates who hold degrees related to public service.
With public service, you can hit two birds with one stone—serving the country while paying off your debts.
Success stories on paying off student loans are not uncommon. Learn how a couple from The Financial Diet managed their finances to pay off their student loans:
Paying off student loans can seem like a daunting task.
But with proper planning and discipline, you too can manage your finances and free yourself from debt.
Remember: the more you save, the earlier you can pay off your debt!
(Bonus Tip: Liked these 7 tips? Take 10 more for free! The Ultimate Student Loan Resource Library has 10 of the most important things to know about student loans so you can pay off your loans the smartest and easiest way possible. Click here to learn more and to get the free guide.)
Do you have your own practical tips in paying off student loans? Share them with us in the comments section below.
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