Student Loan Repayment Strategies: Find the Best Option for You

If you want to be financially independent and debt free, there may be something holding you back. Student loans can be one of the most difficult loans for people to pay off and while some people may take a lifetime paying them back, if you want to live a debt-free life, it could be time to start working on your debt today. Here are a few strategies to try if you want to pay off your student loan debt: 

Try to set up monthly payments

Whether it is a credit union personal loan or a student loan, there is one fact that remains the same over any type of loan: you want to set up monthly payments. Monthly payments help individuals to pay off their loan in a quicker amount of time than they would otherwise. If you can automate your monthly payment, it will be even better. Try to make the amount of payment as high as you possibly can, if paying off your debt sooner is your main goal. 

However, keep in mind that being able to make monthly payments is largely dependent on your ability to cover your bills and take care of you or your family first. If at this time, large monthly payments are not possible, strive to make that a financial goal. 

Extend the deadline

When it comes to paying off your student loan, there are options for an extended repayment period. However, keep in mind that this does increase interest. This could be beneficial if you are still building up your career and are not yet making the income you want and need to cover other life expenses. It will lower your monthly payments while allowing you to have more time to pay it off. 

However, interest can add more to your overall debt, so weigh the pros and cons of this type of strategy before making it your own.  

Look into loan forgiveness

If you want to wipe your slate clean, there are some options for loan forgiveness. They are few and far in between, so think twice before getting excited about the possibility.  One option that is for those working for the government is PSLF. You do need to make payments with this option, but you can be forgiven the rest tax-free. It’s something that could be beneficial for anyone who has a government career trajectory that could span years. It is a bit stringent to get approved for, but the savings are more than worth it. 

Make extra payments

If you know that you have some extra cash on hand, why not add to your payments every now and then? This can help you to decrease your interest and the overall amount that you owe and is beneficial for your future. Make sure you’re adding these extra payments to the principal and not interest on the loan. As with any kind of debt, whenever you can pay off more, the better it will be for your future. 

Consider your long-term goalsBefore you decide on any repayment strategy, make sure that you take time to think about your future and your long-term goals. You want to be sure that you pay off your student loans, but you also want to build up the kind of life that you’ve envisioned for yourself. Find an option that works for your long-term future so that you’re paying off your debt while also setting yourself up for a solid financial future and a solid credit score.

In Conclusion

Do you want to get rid of your student loans? It’s time to make a plan on how you can pay them off as quickly and effectively as possible. The sooner you pay it off, the better it can be for your long-term future.