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:
Pick the payment plan that works best for you
Everyone has different options available for them when it comes to paying back their student loans, and some payment plans might suit your current financial situation more than others. For example, you can extend your repayment period or you can opt for an income-based plan. Although these plans can help to make your payments lower and more affordable, they do extend the life of your loan, ultimately costing you more in the end. However, these can be good options to consider if the higher monthly payments through a traditional repayment plan will put too much financial strain on your monthly budget. Bear in mind that flexible repayment plans usually aren’t offered with private student loans.
Consider making biweekly payments
A large loan with monthly payments can be paid off much quicker with biweekly payments. If you have the financial means to do so, this option can help to save you money in the long run because you’ll shorten the length of your loan and pay less interest in the end.
Make larger payments
Just like with any other loan or credit card, making more than the minimum required payment each month will help to lower your principal and reduce the amount of interest you pay over the life of your student loan. If you’re paying more than the minimum, be sure to include a written request that states you want the extra money to go towards your principal, and not towards future payments.
Find out if you qualify for loan forgiveness
You may be eligible to have some or all of your student loan debt discharged, which is usually dependent on your line of work. It is certainly worth looking into, as there are several different career fields and volunteering opportunities that qualify for some level of student loan forgiveness.