How to Pay Off Student Loans Faster

Student debt doesn't have to be a burden on your post-college life. If you have or will likely have outstanding loans when you graduate, here are some steps you can take to reduce your debt and pay off your student loans faster. Following them will cut your interest payments and help you start adult life debt free.

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Instructions

1. While you are still enrolled in school, try to save as much money as you can. Any thing that you are able to save and put toward your debt will help you pay off your loan faster. Put away extra money by working or living frugally, and open a savings account at a bank or credit union to earn interest on your money.

2. Don't open any credit card accounts while you are in school. Credit card companies may try to sell you on the idea that having credit cards will help you build credit, but paying your bills and rent on time will achieve the same purpose. Save the cards until you have graduated and secured a job. They pose too much of a temptation before then, and you don't want credit card debt added to your tuition debt.

3. Avoid unpaid internships unless there is a high chance you will get a good job offer out of it, or unless it is absolutely necessary for your program of study. Always keep in mind that the time you spend giving away your labor for free, is time that could be spent getting paid. Also remember that companies 'hire' more interns than they can give real jobs to.

4. If you don't have good job prospects when you graduate, consider going to grad school. Many lenders will let you defer repayment of loans while you finish an advanced degree. Many advanced degree programs offer tuition waivers and stipends for their grad students who work as Teaching Assistants. When you graduate, you will have better job prospects and possibly some money saved up as well. Then paying off your loan will be less burdensome.

5. Look into loan consolidation programs to minimize your monthly payments on private and federal loans.

6. Also look into student loan forgiveness programs. If you are eligible, you can have some or all of your loan repayment forgiven. Usually these programs require you to participate in a community service or outreach program. They may not be well paid positions, but they look good on a resume and will get you out of debt faster.

[floopy]

on 2/24/2009 Another great article. 5*