Tips to Pay Off Your Student Loans Sooner3 min read
After graduating, many people make paying off their loans one of their top priorities. Unfortunately, what people discover is that, as it often does, life will throw them curveballs, such as job loss, medical emergencies and divorce, which will force them to change their priorities. In such cases, paying off college debt can often end up at the bottom of people’s to-do lists. However, when people do this, what they often find out is that ignoring these debts is one of the worst things you can do. Depending on their loan’s interest rate, what was once a seemingly affordable expense has enough time to develop into an unaffordable debt.
How Can I Pay Off My Student Loans Quicker?
Whether you are hoping to find a way to vault paying off your loans back to the top of your to-do list or you are a new graduate hoping to knock out your school debt right out of the gate, here are a few tips to help you pay off your student loans sooner rather than later:
- Avoid skipping payments – If you cannot afford your payments, do not just skip them. You should get in touch with your lender and speak with them about options, such as lowering your monthly payment amount or forbearance.
- Make sure to read the fine print – You need to read your loan agreement, because knowing certain details before a problem arises could allow you enough time to contact your lender and fix the issue without incident. For example, if the interest rate on your loan rises, it can make your monthly payment more expensive. If you know ahead of time that your payment is about to increase to an amount you will not be able to afford, you may be able to get in touch with your lender and renegotiate the terms of your loan so that your payment remains affordable.
- Treat student loan forgiveness like a myth – Aside from situations where a person was scammed by a private lender, generally, people must pay off their loans in full. If people think that they will not have to pay off their student loans, then they could allow their student loan debt to grow out of control. People can allow this to happen, because they believe it does not matter since they expect their loan to be forgiven eventually. However, once they figure out they are wrong, it can be too late.
Student Loan Debt Is an Issue That Is Not Going Away Anytime Soon
President Obama considered the student loan debt crisis such a pressing issue that as his time in the Oval Office was winding down, he continued to work to solve it. Before his administration left the White House, President Obama implemented protections that prevented debt collection companies from charging high fees on student loans in default.
Unfortunately, after taking office, President Trump undid many of President Obama’s student loan protections. As a result, many people are racing to not only pay off their student loans in full, but also to do so as quickly as possible.