Need to learn how to how to eliminate student loans? With college tuition fees rising tremendously year by year, studying in college has almost become a luxury.
In fact, in a recent study by CNBC, the current cost of college is more than two-and-a-half times as much as it was in 1988 — a markup of 163 percent.
In the face of such a situation, students’ families have no choice other than resorting to borrowing federal or private student loans, which can be a double-edged sword. On the one hand, they help you pay your college fees and sustain you through the years of study. On the other hand, student loans are fraught with blowing a hole in your family’s budget that will be extremely difficult to fill. Be that as it may, but a vast majority of students consider loans the only viable option to get a coveted degree.
It’s a rare student who doesn’t dream about saying goodbye to their loan debt. What can feel better than lifting the financial burden off your shoulders? If you want to learn how to pay off your student loans and start enjoying your freedom faster, take advantage of the useful tips we’ll share in our article.
How to Eliminate Student Loans?
Have you ever wished your student loans would just go away? While there's no way to snap your fingers and have your student loan debt here are smart ways to eliminate them over time.
1. Find a Job
One of the best ways to get rid of student loans quickly is by making extra money. Take a part-time job while still in college is a common practice among students. Lots of young learners find themselves campus jobs that usually offer a more flexible schedule and are more student-friendly.
Moreover, by getting a job on campus, you may forget about commuting expenses. Contacting your college career center also would be a wise decision. Employers often contact college job boards to find decent candidates among students. Make sure to familiarize yourself with the list of the available vacancies.
It’s also a good idea to apply for many jobs, even if they don’t seem immediately appealing. By doing so, you’ll increase your chances of getting the desired job and ending the search process sooner. This is probably your best bet when learning how to eliminate student loans faster.
2. Don’t Worry
Your busy schedule and tons of homework won’t interfere with your job. You can rely on Edusson.com, a custom speech writing service that offers timely help with all your college assignments including essays, book reviews, research papers, and theses. Thus, you will never fall behind on your homework or job duties and be able to go through repaying your debts sooner.
3. Divide Monthly Payment in Two
A very useful trick for getting rid of student loans faster is making your monthly payment less overburdening by splitting your monthly payment in two. For instance, if your minimum monthly payment is $400 which is due, say, by the 25th day of the current month, try sparing $200 at the beginning of the month. The rest of the amount can be paid as required.
It will help make your monthly payments more manageable. Remember that it’s easier to eat a whole elephant one bite at a time. Moreover, paying half of your monthly payment every two weeks equals one extra payment made every year. Thus, you’ll be able to deduct a whole year from your ten-year payment schedule and save more.
4. Try Paying More Than the Minimum Payment
If your financial situation improves after borrowing student loans – you inherit some money, get a well-paid job, bonus, tax refund, or any other financial windfall – don’t hesitate to take advantage of it.
Student loans have no prepayment penalty, which enables you to repay the entire loan at your earliest opportunity. Try allocating more money for your loans, and you’ll see your monthly interest reduce.
The point is that interest is calculated based on your remaining principal balance. So if you chose to pay more than the minimum payment, you will be able to save more on interest. Even if you're still in college, paying them off while in school pays off.
5. Automate Student Loan Payments
Automating your student loan payments is another way to knock off a little bit of your interest and spare you the hassle of making payments manually. You can do this by enabling the auto-pay option in your online banking.
Thus, each month, a specified amount will be automatically deducted from it. You also may want to specify how many times per month you want your payments to be made.
6. Refinance Your Student Loans
The best strategy to lover your student loan interest rate is to refinance it. Still, note that it’s possible only if you have a steady job and a good credit score. If you meet these requirements, you may apply for a new student loan with a lower interest rate and use these funds to pay off the old one.
Most students opt for private lenders’ services and there are quite a few reputable lenders that we have reviewed that refinance student loans:
- LendKey Refinancing Review
- SoFi Refinance Review
- CommonBond Student Loan Review
- Laurel Road Refinance Reviews
- Earnest Student Loans Review
Private lenders offer considerably lower interest rates compared to their federal counterparts. In the majority of cases, refinancing your loans results in higher monthly payments, but, at the same time, it reduces your repayment period and allows you to save on interest. You can read our student loans refinancing guide if you are interested in learning more.
Ready to Wipe Out Your Student Loan Debt?
The United States is in a major crisis related to student loan debt and its effect on the economy. Not only is it affecting the students themselves, who are finding themselves in situations where they have a desire to go to college and better their education. Although they fear the feeling of being in tremendous amounts of debt because they know that they do not have the money to be able to pay for college. As the price per year of tuition climbs higher and higher every year, it makes it hard for students without the proper funding to believe it’s a good idea to go into debt right out of high school.
Why You Should Find Smart Ways to Get Rid of Student Loans Fast
Even though many students are aware of the student loan crisis, many times their families motivate them to pursue a degree and enter the job field for a profession that they enjoy and want to spend the rest of their lives doing. Soon after entering college though seeing the massive numbers on a computer screen showing how much money they owe to the school is a burden that will not go away for many years after they even graduate.
Stress on You
Having student loans can cause stress on students to do well in school and feel like a failure when they are not doing absolutely perfect in every aspect of college. College alone is a very stressful experience, with a large amount of work that needs to be done each and every night, to the amount of time needed to review and study for upcoming exams. Plus students who need the extra money to pay off those hefty loans, are put under more stress to get money for the loans and also stay on top of their school work.
So this puts the issue all into the student and their families who see their students struggling every day.
Effects on the Economy
The amount of students in debt in the United States is nearly one-sixth of the students over the age of 18. The total amount of money owed by students to pay off their student loans is $1.5 trillion, which is a lot of money still owed to the economy of the United States.
This is terrible for the US economy because the banks in America are the ones really in debt because they have put out the money for the students to pay off their loans.
For example, if all of the students in America didn’t pay any more of their debt, then the United States would be out $1.5 trillion. This would hurt the economy beyond belief, and it would cause a shut down of the economy in America. The amount of money that is owed by student loans also has gotten politicians involved taking sides on if college should be free or not. Seeing what it has done to the economy and also families, who go broke from trying to pay off their children's loans.
Overall, the student loan crisis has taken over America not only affecting students but also the economy. It has taken over society from debates on how much college costs to families falling apart trying to pay for student loans to support their children's dreams of going to college.
These two reasons are why you should find smart ways to pay them off.
The Bottom Line
Hope our tips will help you put more money back into your pocket. It’s high time that you took control of your student loans and stopped paying extra interest. Thus, you’ll succeed in paying off your debt and start spending money on things you actually care about.