If you are like many people, you have resigned yourself to student loans being a part of your life for the foreseeable future. Some people don’t mind making that monthly payment, but for others, the idea of carrying debt any longer than necessary is stressful. If you are considering paying off this debt early, understanding how to make it more manageable and the benefits of doing so maybe just the incentive you need.
Table of Contents
It’s Possible to Pay Less
Looking at your monthly statement, it may seem impossible to pay more than you are. This type of thinking prevents many people from knocking out their debt, but it doesn’t have to. Refinancing allows you to take advantage of a favorable interest rate and shorten the life of the loan. The refinancing process is quick and easy. Explore your options online and know within minutes how much money and time you will save by refinancing. Get your payment information together and take two minutes to see if you would be one of the many who could benefit from refinancing.
Pay Frequently
Paying extra on your student loan each month can have a surprising effect on how quickly you knock that balance down. Even rounding up by a little will lower the amount you pay interest on. Take advantage of any bonuses or monetary gifts to throw some at this debt. If you are paid bi-monthly, getting those extra two paychecks a year, consider using those to pay down your loans.
Auto-Pay
No matter how together your finances may seem to be, it is possible to forget a payment date. Setting your bills up to auto-pay ensures that a payment deadline doesn’t slip by. While missing a deadline for your phone or internet will probably only come with a warning email or letter, and maybe a small late payment fee, missing a payment at any time of the loan is a larger issue. In addition to the late payment fee, which is often significant, you may receive a negative mark on your credit report. You can set the payment up to come out of your checking account automatically. In addition to ensuring you don’t miss a payment, many lenders offer a lower interest rate for using the auto-pay option.
Check Your Employee Benefits Package
When you take on a job, the salary should not be your only consideration. Excellent benefits can add value that is difficult to put a price tag on. In addition to quality health insurance, reasonable time off, and reimbursements for expenses such as phone and commuting, many companies offer some degree of aid in paying off student loans. If help with your student loans is part of your benefits package, you should take advantage of the offer. It is part of your compensation package, and not using it would be the same as refusing a raise or declining insurance coverage. Even if the benefit wasn’t mentioned during the hiring process, review your benefits package carefully. You may find it is available after working at the company for a certain period.