Whether you’re looking for ways to save money when you pay back your student loans, lower your monthly payments, or pay them off quicker, try some of the following tips:
Start with the loan that has the highest interest rate
If you plan on getting a head start on paying back your student loans before you’re required to begin making minimum payments, and you have multiple loans, tackle the one with the highest interest rate first. If you took out a private loan, start with that one. Not only are interest rates usually higher, but they also lack the flexibility in repayment options that federal loans offer.
Automate your payments
Setting up automatic debit for your student loan payments can offer quite a few benefits. You’ll never have to worry about manually making the payments each month, and you’ll never be late with your payments—you’ll just want to make sure you always have enough cash in your account so that you avoid overdraft fees. You might even receive a discount by enrolling in automatic debit, as some lenders offer this as an incentive.
Explore the possibility of loan consolidation
Rolling all of your loans into one larger loan can make them easier to pay off, as you’re only dealing with one monthly payment at a single fixed interest rate. If you took out private loans, compare the different options that are available for private loan consolidation. For federal student loans, you can consolidate them through the Direct Loan program. However, if you have both federal and private loans, you won’t want to mix the two. If your federal loans become private loans, then you lose the benefits and flexibility that federal loans usually offer.
Contact Peachtree Financial Solutions
Are you receiving long-term payments from a structured settlement or an annuity? Do you wish that there were a way to access more of your money now, so that you can take care of mounting bills and expenses? Peachtree Financial Solutions can help make it happen. We can purchase some or all of your future payments from a structured settlement and turn them into cash. Receiving your money sooner and in one lump sum can make it easier to tackle large amounts of debt, such as student loans. Contact us today for more information!
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.