Student Loan Education
Buried By Student Debt?
Consider these affordable solutions to pay off your loans faster.
Going to college is a way towards a better life. But after the hours of studying, paying tuition, and all the extras, followed by hopefully finding a job, reality sets in. Unfortunately, the financial debt left in the wake of graduation can be daunting. But there are solutions to ease your budget!
Refinance or consolidate debt.
Student loans are one of the loans you should strongly consider consolidating. Here, you can replace numerous student loans with a single loan, preferably at a lower rate. When considering options, choose a faster repayment plan with a loan term that’s shorter than what’s remaining on your current loans. Your monthly payment may go up, but you’ll repay the debt faster. A faster payoff means you’ll pay less in interest — and can work towards new financial goals.
Let technology assist.
When you sign up for automated payments, direct deposit, or payroll deduction, you ensure you won’t miss a payment. Some lenders also offer a discount on your loan rate with automated payments.
Pay extra or more frequently.
When possible, pay extra to reduce your debt faster. For example, make an additional loan payment if you obtain extra cash or enroll in bi-weekly payments. These will help reduce your principal balance faster. And if you get a raise, increase the number of your automatic payments — since you won’t miss the money.
Also, if you have federal student loans, consider making additional interest payments. If you’re still in the deferment period, make a lump-sum interest payment before postponement ends. While it won’t pay off your loan faster, it will reduce your loan balance.
Ask your employer.
Some companies are offering to pay student loans as an employee benefit. If interviewing, ask before accepting the position. Or see if your current employer participates in a repayment program.
Consider home equity financing.
If you’re now a homeowner, consider consolidating your debt with a home equity loan. It’s one of the best financing options available. You can borrow up to 100% of your available equity, less your first mortgage balance. With home values increasing, this may be a viable option and a way to pay off your student debt faster.
If you need help navigating your choices, contact us. We can also assist with several financing options.