3 Ways to Pay Off Your Student Loan - Quick and Easy - ARTWINO

3 Ways to Pay Off Your Student Loan - Quick and Easy

Having student loan debt after college can be stressful and overwhelming. However, it's not something you have to live with forever. As of 2018, the average student loan debt for college grads is around $29,320. Although it doesn’t seem like a small amount of money, if you make smart decisions about how to pay off your student loans, you can get rid of them much faster than most people. If you’re one of the millions of people in the same boat, read on to find out how you can pay off your student loan sooner and save thousands of dollars in interest along the way. A recent study by LENDED found that 70% of millennials with student loans aren't taking the right steps toward paying them back as quickly as possible.

Make More Money and Pay Off Your Student Loans

Your best bet to pay off your student loans sooner is to make more money. If you work in a field that happens to be in high demand and has good pay, you’re likely to make more money than someone in a low-paying industry. Make more money by applying to jobs you’re qualified for that pay more. If you’re already working full-time, there are several other ways you may be able to make more money. You can make money from home, enhance your current position, or get promoted to a higher position at work. There are tons of ways to make more money, and every little bit helps when it comes to paying off your student loans. If you make more money, you can put more towards your loan payments and have them paid off sooner.

Refinance Your Student Loan

Refinancing your student loan is a great way to pay off your loan faster. It works by combining your student loans with a new loan that has a lower interest rate and fewer payment options. This allows you to make just one lower payment each month that covers both your old and new loans. If you refinance your student loans, you can often save thousands of dollars in interest by paying off the loan sooner. For example, let’s say you have $25,000 in student loan debt at 8% interest. You pay $250 per month on this loan and it takes you 10 years to pay it off. You’ll pay $3,000 in interest alone and end up with $28,000 in total student loan debt. If you refinance your loan at a lower interest rate, you can pay off the loan sooner. If you pay it off in 5 years, you’ll pay $1,500 in interest, saving you $2,500 compared to paying off the loan over 10 years.

Consolidate and Pay Off Your Student Loan

One of the best ways to pay off your student loans is to consolidate them into one lower monthly payment. It works by combining all of your student loans into one single loan, which saves you money on interest because you’ll be taking out a larger loan. When you consolidate your loans, you can often get a lower interest rate than you currently have. Since you’re taking out a larger loan, you have more flexibility to choose the length of the loan and make one monthly payment instead of several. Once you have a lower interest rate, you can pay off your student loans faster by paying more each month. By making larger monthly payments, you can pay off your student loan in half the time.

Get a Side Hustle and Pay Off Your Student Loans

Cutting your monthly expenses is a great way to pay off your student loans faster and save money. If you’re able to cut your expenses to the bare minimum, you can put more money towards your student loans each month. If you’re currently living paycheck to paycheck, a side hustle is a great way to make extra money. You can make money from any skill, including web design, writing, child care, tutoring, selling items online, and more. What types of side hustles will you do? What is the best way to make money with each one? Each side hustle will make different amounts of money, so determine which one can make the most money in the least amount of time so you can put as much towards your student loans as possible.

Conclusion

Having student loan debt is a common problem for most people who graduate from college. You can avoid this debt by considering the cost of your degree, or at least getting a part-time job while going to college. If you have a student loan, you can repay it faster by making more money and putting the extra cash towards your loans. You can also refinance your student loans at a lower interest rate, consolidate your loans and get a side hustle to make even more money. With these tips, you can pay off your student loans quickly and get your financial life back on track.