How To Pay Off Student Loans in a Fast, Easy, Smart Way – Get Started Now

Last Updated on May 31, 2021

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Student loans are a nightmare. According to US News, “Student loan debt affects a majority of college graduates today – about 65 percent of class of 2018 graduates took out loans to pay for college.” The number of loans that need to be repaid is increasing, and it can cause stress for many recent grads.

Here are some helpful tips for paying off student loans in a fast, easy and smart way.

Pay More than the Minimum

No one is going to fault you for paying more than the minimum balance each month. By paying more each month you’ll be able to make your loans disappear faster and save some money in the long run. It will also save you the stress of worrying about when your next payment deadline is. According to Nerdwallet, “let’s say you owe $10,000 with a 4.5 percent interest rate. By paying an extra $100 every month, you’d be debt-free more than five years ahead of schedule, if you were on a 10-year repayment plan.”

Stay on Budget

Having a monthly budget is the perfect way to help pay off loans because you won’t have to worry each month about covering your payment. Start an organization system where you put a certain amount aside each week for your student loans – maybe it’s in a separate bank account or a envelope on your kitchen table. If you get into the habit of putting money aside then those loans will disappear before you know it.

Start with the Smaller Loans

If you have a lot of loans it might seem overwhelming trying to pay them all off at once. But it’s easy when you separate them into chunks. Many people recommend using the Loan Snowball Method. This method helps you focus on paying off those smaller loans first and then working toward the bigger ones. While paying the minimum payment on all your loans, continue to throw extra money at the smaller ones until you pay them off. According to Ramsey Solutions, “As you work the debt snowball method, you’ll feel the progress you’re making as each student loan disappears. Knocking those smaller loans out first will give you a couple of quick wins and help you stay motivated to start crushing the bigger student loans fast!”

Apply for Loan Forgiveness

Certain loan forgiveness programs help you save thousands of dollars. There are a variety of programs that can help, but be careful, many of them have certain requirements to qualify. Most are determined by what kind of job you have. The most popular program is the Public Service Loan Forgiveness (PSLF). To qualify you must work for a government or non-profit organization and have made 120 qualifying payments through a income-driven repayment plan. Learn more about this program, here.

Student Loan Hero has a extensive list of different programs that can help you with loan forgiveness.

Start a Side Hustle

Whether it’s walking dogs or making crafts, side hustles are perfect ways to put a little extra money into paying off those loans. Even an extra part time job can go a long way with helping. Throw all that money at your loans and you won’t have to worry about having enough of your regular paycheck at the end of the month for the payment. Need some ideas for your next side hustle? Check out our article on side hustles, here.

Student loans can be overwhelming. Just take things one step at a time. Follow these easy steps and you’ll be on your way in no time!