How to Get a Student Loan Repaid Quicker
Student loans generally have a repayment term of at least 10 years, with some loans offering repayment terms of up to 25 years. If paying for your education for decades sounds like torture, work on getting your student loan paid off more quickly. The faster you pay off your loan, the less interest you will pay overall. However, paying off your loan quickly requires making extra payments, which can put a strain on your budget. For some people, the freedom of being out of debt is well worth the extra effort.
Other People Are Reading
Instructions
-
-
1
Put all extra payments toward your loan with the highest interest rate at the time of the payment, while just making required payments on loans with lower interest rates.
-
2
Make payments while you are in school if you can afford it. Unless your loan is subsidized, interest begins accruing as soon as your school gets the loan disbursement. Paying some of the interest while you are in school reduces the amount you have to repay later.
-
-
3
Use graduation gift money to make a big student loan payment when you graduate.
-
4
Start making regularly monthly payments as soon as possible after you leave school. Most student loans have a grace period of about six months after you drop below half-time enrollment to give you time to get on your feet financially. If you are ready before then, start making payments early.
-
5
Reduce your living expenses after college so you can afford higher monthly payments on your student loan. Some ways to do this include living with a roommate, buying items on sale, taking lunch to work, getting a used car instead of a new one or using public transportation. Every month, make an extra loan payment with any extra money in your budget.
-
6
Use your tax refund each year to make an extra payment on your student loan.
-
7
Set a goal for when you would like to have your student loan paid off. Use an online loan calculator to determine how much you have to pay every month to meet this goal. Having a date in mind helps motivate you to keep up with your aggressive payment schedule.
-
1
Tips & Warnings
If you have credit card debt, repay it before making extra payments on your student loans. It does not make sense to make extra payments on a debt with a low interest rate when you are carrying a debt with a high interest rate.
