Graduating from university is one of life’s greatest accomplishments, but it shouldn’t end with a lifetime of debt. Many students need financial assistance to pay tuition and housing fees, along with the cost of textbooks and other expenses. Don’t sweat the monthly payments when you can use these seven intelligent ways to start paying off student loan debt.
These tips will show you how to save money for student loans and give you a new perspective on financial freedom. With a few budget adjustments and new tricks up your sleeve, you’ll feel more confident about tackling debt so it’s a thing of the past.
1. Enrol in Autopay
Logging into different accounts to pay your bills is a hassle. Autopay is one of the smart ways to pay off student loans because you’ll never miss a due date. Depending on your lenders, it could also save more money each month by discounting your minimum payment. Think about investing that extra money so it grows into a reliable resource to pay off your debt even more.
2. Start a Debt Snowball
Debt snowballs are a great way to figure out how to pay off student loans. People often give traditional financial advice like paying off your most considerable debts first, but that doesn’t work for everyone.
You can always start a debt snowball by paying the smallest debts first. As you eliminate debt, you’ll have more money to put toward your larger monthly payments without getting an extra job.
3. Schedule Biweekly Payments
Many graduates schedule monthly loan payments, but going biweekly is one of the best student loan payment tips to use if your income increases. Even if you only make small secondary instalments, you would make more significant financial progress than with just 12 auto payments.
4. Consider Private Lender Refinancing
You may have signed up for the best rates possible when you took out your loans, but those could have changed since then. Talk with a private lender about changing your interest rates or even your repayment terms.
High-interest payments often keep people from reducing their student loans. If you can’t afford more than what you pay each month, your money likely only goes toward that accruing interest and not your total balance. Asking about refinancing could make all the difference in your financial well-being.
5. Use Your Tax Rebate
When people ask how to save money for student loans, they often remember their tax rebates. If you don’t have any other pressing needs, put that refund toward your student loan debt. You’ll get ahead of a payment or two and know how to pay off student loans with the extra annual income.
6. Contact HM Revenue and Customs
One of the top student loan payment tips is reevaluating your income and adjusting your payment plan as needed. Changes in your employment situation may have launched your self-employment career. The government considers someone self-employed if they meet specific job criteria, such as:
- Running a business
- Hiring other people
- Sell goods or services for a profit
After filing your first year of taxes with your self-employed income, the HM Revenue and Customs (HMRC) works out how you’ll repay everything based on your current income. Starting a job that makes less annual income could result in a more affordable monthly payment.
7. Stick With the Repayment Plan
Falling behind with your repayment plan only increases your interest and tacks on late fees. Sticking with that plan is one of the best student loan repayment tips anyone can use. If you’re struggling to meet those payments because your job changed or you’re out of work, contact your loan services or federal student finance offices to discuss the assistance options that apply to your situation.
Try Something New
These are seven smart ways to pay off student loans, so try something new if your financial situation isn’t working. You could save more money and pay everything off faster so you don’t have to wait years to experience financial freedom.