1. Start Making Biweekly Payments This is a little finance trick that really adds up over the long run. You will accrue less interest if you make payments twice a week instead of once a month because your interest has less time to accumulate. Also, because of the way the math works out, you’ll wind up paying off an extra month’s worth of payments per annum. 2. Start Making Payments In College This is a fantastic idea. College has a tendency to feel so set apart from the real world that it’s easy to put off reality and live blithely off of your student loans while basking in the bubble of academia. Do yourself a favor by starting to get a feel for what those loans will really mean in your life after you leave college. It will get you in the habit of budgeting, encourage you to be conservative about how much debt you take on and propel your interest in educating yourself about personal finance. 3. Take Advantage Of Student Loan Tax Breaks While it’s tempting to dismiss your taxes as just another confusing financial morass that you’re trying get over and done with as quickly as possible, it will really serve you to practice some patience around tax time and educate yourself on how to be tax savvy; there are quite a few tax deductions and credits for college students. The tuition and fees deduction for example is excellent for student loan borrowers, potentially knocking as much as $4,000 off of your taxable income. 4. Try To Reduce Your Principal Every little bit helps! If you can pay even slightly more than your monthly minimum payment, you’re putting money into reducing your principal, which will save you money in interest over the life of the loan as well shortening the life of the loan. 5. Make A Plan To Manage Your Debt Planning is huge. If you can get informed about what kinds of loans you have, maintain good relations with your servicers, keep careful track of how much you owe and when you owe it, you’ll be able to budget for success. If you really want to get your loans dispensed with and off your plate you can make your budget as frugal as possible. You’ll find it really is easier to live cheaply if it’s part of a plan because you know how much you’re willing to spend each week and you’ll also have an end point to look forward to, which will keep your spirits up. 6. Stay Positive Keeping a positive attitude and forward-looking outlook is a crucial part of achieving any goal. And while student loan debt can start to feel like an insurmountable problem, it really isn’t, so don’t let it get you down! With good planning and awareness about your options there’s plenty you can do on your own; if you then supplement your own knowledge by getting help from the student loan experts, you’ll find the burden of debt beginning to lift.
6 Tips To Pay Off Student Loan Debt Faster
December 26, 2012
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