Student loan repayment is tough and knowing the actual amount can definitely cause a significant amount of stress. It can especially be disheartening when you realise that you’ll be placed in a difficult financial condition even before you obtain your degree. For graduates in certain countries like the United States, student debt has grown to become an expected part of higher education.
Despite this humbling reality, there are ways for you to pay off your student loan early. This feat, while possible, requires planning and strict self-discipline in terms of financial spending. However, having your student loans off your back sooner is certainly better as you can invest in areas that you want for your future. Here are some tips on how to pay your student loans early.
1. Work on the Side
Having a side job can greatly increase your chances of saving up for your student loan repayment. Besides, this is the chance for you to voluntarily get a head-start in entering the labour market. Every educational institution offers job vacancies for part-time roles. They’re less intensive than the average job, but such opportunities should be seized anyway.
Freelance gigs are another option and, if you’re lucky, you can receive higher pay for doing remote work. Either way, you would be surprised at just how much money you can earn (and save) within a year of being a part-time employee or freelancer. The intensity of higher education is a challenge in itself, but extra money that can contribute to your path of being debt-free is a pay-off worth considering.
2. Sign Up for an Autopay System
Getting your bank to automatically deduct your monthly student loan fees saves you the trouble of forgetting payments, but also enforces the idea that you simply have to set aside some cash. Though it may appear too burdensome prior to enrolling in the service, timely payments will save you from late payment fees which can significantly amass over time. Some banks offer an incentive if you sign up for autopay services so be sure to inquire about it.
3. Hire an Accountant
Lessen the burden of your financial woes by getting an accountant to manage your student loan. Accountants are familiar with dealing with large sums of money and can suggest the best way to allocate your funds as well as how to file your taxes. With their guidance, you’ll be better equipped to maximise your financial portfolio and allocate your funds wisely. Hiring professional help is particularly suitable for those who are on an income-driven repayment scheme where money is limited.
4. Find a Job that Offers Loan Forgiveness
This recommendation is subject to your location, but countries such as the United States makes available job positions that offer loan forgiveness. In other words, through your employment in a certain sector and meeting various criteria, your student loan will be alleviated. Among those positions are public school teachers and public service roles.
Although the job may not be what you were expecting as a fresh graduate, it is worth considering if you have a large student loan. Having a job in a public school is less glamorous than a Wall Street position, but there is a safer guarantee of being debt-free via this path.
5. Get Serious about Saving Money
When you have substantial student loans, approximately $37,172 for a United States average, sometimes saving up as much as you can and whenever you can may just be the most practical solution. Even if you don’t have the time for a side job or work at the university, there are plenty of ways for you to make some money.
It won’t hurt for you to look over your closet and reassess whether you need everything inside it. Selling your clothes, bicycle, or used books can give you the benefit of extra cash. If you’re fortunate enough to work for an employer, don’t forget to put aside some cash that goes towards your student loan repayment.
The temptation of freedom as a young adult may be especially hard to resist when you stare at all the assignments you have sitting on your desk. However, being disciplined and dedicated can make a difference when it comes to how quickly you repay your student loans.
The above are examples of how you can garner extra cash to slowly pay off your student debt, but self-discipline is a trait that you’ll have to harness if you’re serious about being debt-free. Unfortunately, financial freedom is a privilege bestowed upon only a lucky few in the world. Therefore, if you don’t have a money-filled vault at your disposal, like the majority of us, then you may have to simply get serious about your debt payoff plans.