HOW TO LOWER STUDENT LOAN DEBT

Saving money is a goal many people share, but it’s not always the easiest thing to do. This is especially true when student loans are thrown into the mix. Student loans are one of the biggest forms of debt you can accrue in your life and paying it back can be difficult regardless of your degree and being swamped with student loan debt can hinder you in the long run if you’re not careful. Here are ways for you to lower student loan debt to help you save more money each month.

What you spend each month plays a huge role in how much you can save money. It also dictates what you can put towards your debt payments. Since your monthly expenses are basically your budget, you need to go over it and see what you can cut out. Cutting your monthly expenses is a great way to not only lower them, but it also allows you to keep your finances organized. One of the best ways to lower your monthly expenses is to refinance your student loans into a new one. Taking advantage of an Earnest student loan refinance is when you’re able to combine any outstanding loans you have into a brand-new loan, which can give you some extra cash to put toward savings. Another benefit of refinancing your student loans is being able to have flexible payment schedules on top of lower interest rates.

You might be thinking this is a little counterproductive as the goal here is to spend less to save more. When it comes to paying off your student loans, however, you actually want to spend as much as you can. The more you pay on your debt, the quicker it’ll be over and done with. Having outstanding debt will show up on your credit report and can potentially affect any future loans you choose to take out.

If you’re able to come in with extra money, you want to put every cent of it towards your payments. Having a part-time job or a form of passive income is incredibly useful in this situation as you don’t have to dip into your personal savings to pay off your debt. If you’re looking for easy ways to have passive income, you can try affiliate marketing, blogging, selling anything you don’t need or even investing a bit into stocks.

We understand that managing your personal finances isn’t always easy, and student loans can make things needlessly difficult. If you feel like you’re being overwhelmed with the financial responsibility, then you can always talk to your loan servicer to see if you can set up autopay. Autopay is when the lender will automatically deduct the necessary payments for a loan. This way, you can ensure your payments are always on time while you focus on other things. What’s more is that setting up autopay may come with a discount on the interest rates.

If you were able to receive a refund on your taxes, then you have an opportunity to pay a huge portion of your debt off quickly. You might also end up paying off what’s left on your payments while still having some money left over. This also coincides with what we previously mentioned about extra or passive income.

Loan forgiveness is when you’re basically absolved of paying back the debt you owe. However, this is something that you must meet certain requirements for. For one thing, you have to be a federal worker in some form or be a part of a non-profit organization. This includes being a teacher, doctor or running a charity. You also want to check to see if your employer offers any kind of repayment assistance.