Paying Off Student Loans

Paying off student loans can present a daunting challenge. With the cost of education these days, plus living expenses, books, food and rent, it is easy for student loans to get out of control. If you have reached the end of your school career and are concerned about how much you have to repay, creating a plan to pay your loans off faster can help.

Difficulty: Moderately Challenging

Instructions

1. Figure out how much total debt you have. This includes non-student loan debt.

2. Write down all of your debts, according to interest rate. Paying off student loans can usually come after you pay off high interest credit card debt.

3. Look at your budget for the month. Figure out how much money you have available to make an extra payment on your debt.

4. Start applying the extra payment (on top of your minimum payment) to your highest-interest debt, even if it is not a student loan. Keep paying the minimum on your other debts.

5. When your first debt is paid off, take the entire amount (minimum plus extra) and apply it to the next debt on your list.

6. Continue through all of your debts. By the time you get to paying of your student loans, you should be putting a fairly large amount of money toward them each month.

Tips & Warnings

• Cut spending on items that are unnecessary so that you can put more toward paying off your debt.
• Enjoy a small reward each time you pay off a debt in order to keep motivated.
• Use the 6-month grace period on your student loans to seriously demolish your other debt.
• If you do not have other debt, start paying on your student loans immediately; don't wait for the grace period to end.
• If possible, make interest payments on your student loans while you are still in school so that it is not capitalized.
• Do not use more debt while you are paying off your student loans.
• If things become difficult, don't just stop making payments. Call your lender and arrange for a deferment.