Do you or does someone you know have student loan debt? You’re not alone. American borrowers owe more than $1.48 trillion in student loan debt. Student loans can be stressful, but the following tips will help you pay off your loans!
Organize and Research Your Loans
First, make sure you understand your situation and don’t have any lingering questions about your loans. Clarify your current balance and interest rate. Then consider how the rates might change in the future. Visit the National Student Loan Data website for information about your loans. The website can even provide you with a credit report.
Develop a game plan for how you’ll pay off your loans. This plan could be setting up automated payments. These payments take a designated amount of money from your bank account each month.
Utilize Tax Deductions
If you have student loans, you may be eligible for an interest deduction on your federal taxes. This option allows you to reduce your taxable income based on the interest you paid on your loans that year. Take advantage of this offering when you file your taxes. If possible, pay a larger sum towards your loans that month to position yourself to pay them off faster!
Apply to Refinance Loans
Do you research to figure out if you are eligible to refinance your loans. If you consolidate your loans, you may be able to negotiate a lower interest rate. This ensures that you more of your payment goes towards paying down your loan principal.
Consider Adding to Your Income
The best way to pay offer your student loans quickly is to pay more money than the minimum each month. If this is difficult for you to do, considering adding another source of income. This doesn’t have to be another job. There are many opportunities for extra income. These could be as simple as selling some of your extra clothing or completing surveys. Every little bit helps!
Make Sure You Have an Emergency Fund
Even if you prioritize paying off your student loans, make sure you still have an emergency fund. If you don’t have an emergency fund, create a savings account and add some money to it each month. A general rule of thumb is to have three to six months’ worth of living expenses in this account in case of an emergency.
These tips will help you pay off your student loans in a short period of time. By doing your research, pursuing additional opportunities, and adding to your income, you’ll be on your way to a debt-free future.