So you want to know how to pay student loans off faster. Well if you need money to pay off your student loans then we have a few ideas that might help you. Here are 7 practical idea’s (not “budget” or “spend less”) that will show you how to pay student loans off faster.
If you have any ideas of your own please let us know in the comments below.
How To Pay Student Loans Off Faster:
Take Part Time Work:
If you’re lucky enough to already have found full time work then you should also consider some additional part time work to help pay off your student loans faster. Part time work like SAT Prep is perfect for new grads and pays pretty well, anywhere from $25-$75 with the right credentials. At this rate even 1-2hrs a week could put a serious dent in your loan principle every year.
Start A Small Business:
In today’s age of the internet and direct wholesaler deliver its actually not that difficult to start a small business. There are a multitude of things you could advertise and sell on the internet.
Or, if you have a skill like accounting or a trade like carpentry then consider doing some additional work on the side. Even by reaching out to your network you might be able to land a few regular customers without much work.
Take Advantage Of Student Loan Discounts:
There are two main types of discounts normally associated with student loans. The first is the direct debit discount. After setting up direct debit for your student loan payments your lender may give you a discount. This discount is typically around 0.25%.
The other type of discount is the on-time payment discount. This discount is given once payments are made on-time for a period of time. Usually this period is 5yrs or more. But it could offer another discount on your student loan interest so make every effort to pay on time.
Consolidate You Student Loans:
Consolidating your student loans is a good idea if you’re able to reduce the average interest rate on the loan. If you have loans that are +6% then you might be a good candidate for a loan consolidation. If you have multiple federal education loans then you could also use a Direct Consolidation Loan, learn more at studentloans.gov. Before you consolidate your student loans make sure that its the right option for you. You may lose benefits like interest rate discounts, principal rebates or loan cancellation benefits if you consolidate.
Use A Balance Transfer Credit Card:
Balance transfer credit cards sometimes have introductory interest rates of 0% for the first 12-18 months. If you’re able to qualify for one of these cards then there is an opportunity to pay off your student loans faster by using this free credit. This trick only works if you’re able to pay off the card fully after the introductory period. So this is best left to those who have very good control of their spending/savings.
Look Into Loan Forgiveness Programs:
Programs like the Public Service Loan Forgiveness Program offer the possibility of having certain student loans forgiven after the requirements are met. For more details on the requirements visit studentaid.ed.gov.
Another program is the Teacher Loan Forgiveness Program. If you’ve been teaching full-time in a low-income elementary or secondary school or educational service agency for five consecutive years then you may qualify for the program. For more details visit studentaid.ed.gov.
There is also the Federal Student Loan Repayment Program. While this is not exactly student loan forgiveness it does allow agencies to offer incentives of up to $10,000/year towards student loans for “highly qualified employees”. For more details visit opm.gov.
Another program is the Nurse Corp Loan Repayment Program. This program could help pay off up to 85% of student loans for eligible nurses. To qualify you must be working in an eligible critical shortage facility. For more details visit hrsa.gov.
The last type of student loan forgiveness is for Perkins Loans. Perkins loans could be eligible for discharge if you’ve worked in certain fields. For a chart that outlines the conditions of discharge please visit studentaid.ed.gov.
Ask Your Employer To Pay Off Your Loan:
Everyone knows that negotiating salary and benefits can lead to some big increases in income over time. But did you know that you could also ask your employer to pay for some or all of your student loans as a part of your compensation package? This tactic could come with retention benefit for the employer if they require you to stay for a certain period of time after the payment is made.
Hopefully now you know how to pay student loans off faster. We hope you found this post helpful. If you have any additional ways to pay off student loans faster then please make a comment below. Thanks!
Photo by Abee5 via Flickr