Depending on where you choose to attend college, you will walk out with more than a degree. An average graduate could rack up to $30,000 to $50,000 in debt from student loan.
If you are not already under this situation, here are a few precautions you can make to ensure you pay off your student loan as fast as possible.
- Pay off the highest interest loans first: This is a basic rule. If you have multiple loans, the best policy is to throw as much money possible to the loan which has the highest interest rate. Meanwhile, make minimum amount to the other loans. This brings us to the second point in the list…
- Consolidate your loans: If you have multiple loans, refinance them into one single consolidated folio. This will decrease your interest rate, so you can start paying more money towards your student loans. This also makes your financing more basic and manageable because you have only one monthly payment. There are currently below 3% refinancing rates available.
- Get advice on how to manage student loan: Many organizations offer counseling and advice on how to manage your finances. For debt advice Scotland trust deeds are an excellent source. You can have a collateral signed off to an administrator to the benefit of your creditors while you pay off the loan.
- Budget control your expenses: Make a budget to keep your finances on track. You already have a bunch of extra cash sitting in your account, which should go towards loan payments and not the premier seats at the movie theaters. You do not have to deprive yourself either. By making a strict budget, you know exactly how much you can spend on entertainment and other things.
- If you can qualify, you can also apply for a loan forgiveness as part of a federal program.