Take Control With The 8 Tips for Paying Off Student Loans
1) Know What You are Signing. It is easy try and worry about it when you graduate, but if you are finding that you have to take out loans for school, read the contract! Know and understand your agreement. It is very important to your financial health in the long run.
2) Don’t Ignore Notices and Stay in Touch. The government does not take into consideration
an excuse of “I didn’t know about it”, or “I forgot” when it comes to repayment. When you
signed on the dotted line, you made a commitment to repay within certain guidelines. Make sureyour creditors have your current mailing and email addresses at all times. Ignorance will just costyou more money in the long run.
3) Read Your Contract. Get out your loan docs and refresh your memory on repayment terms.Make sure there is no penalty for early payments, loan consolidations, etc.
4) Don’t wait to graduate to start payments. If you are employed before graduating, start repaying your loans as soon as you can afford it. The earlier you start, the sooner it will be completed and the less interest you will be paying out. Make sure to read your contracts!
5) Make larger payments. Round up your payments as often as possible. The more you pay on your loans, the less interest will accrue and will save you money overall.
6) Make additional payments. Adding extra payments will go right to your principle, reducing your loan amount and, therefore, your interest accrual. Plus it will shorten the time left on your loan.
7) Check out options for automatic payments or loan consolidations. Often creditors will give a discount on interest if you allow an automatic payment. A savings of a .50% or so can really add up over the life of the loan. Also, consolidating multiple loans can cut back on the amount of interest paid. Read and research any means of saving money so you can take the savings and add it to repayment on the loans.
8) Be Consistent. Make your payments on time and avoid late fees. Penalties can add up to big money that you could use to apply to the loan instead.
You can be in control of repaying your student loans on the fast track with these easy tips for paying off student loans. Let us know some of the tips that have helped you pay down your debt quickly.