How To Get Rid Of Student Loan Debt Fast
Now that we already discussed living and managing your life with Student Loans it’s time to talk about how you can pay off student loan debt quickly and painlessly. We are facing a student crisis here in America, with students all over the country owing a whopping $1.3 trillion. That’s more than all of the country’s credit card and car debt put together. The average student leaves college with over $37,000 to repay, and those who switch majors or embark on advanced degrees rack up an even larger debt.
Often, student loans are a necessary burden that many young people have to deal with in order to get an education and then on to bigger and better jobs in the future. However, they are also an extra, and often unneeded stress before the pressure of papers and exams have event begun! There are, however, ways to deal with and manage your student loan in a smart way, meaning you can pay the money off faster and live a debt free life!
Take advantage of your grace period
Depending on what type of loan you have, your lender may grant you a grace period after graduation, when you will be required to make payments for a certain amount of time. If you can, avoid the temptation of paying back nothing over this time and get yourself ahead of the game.
For example, if you will be required to pay back $200 per month once your grace period is over, start repaying this during your grace period. Not only will this give you a chance to reduce your debt faster, but it will get you used to having to put that amount of money away each month.
Find out if you qualify for loan forgiveness
Student loan forgiveness is often granted when a certain area, such as a low-income town or city, is in need of a certain profession. Some of these jobs include teachers, law enforcement, lawyers, doctors, dentists, social workers, firefighters and more.
Keep in mind that many of these jobs will come with requirements, and you may be required to sign a contract to work in that job for a certain amount of time or risk losing out on your student loan debt forgiveness. There are other ways to ease your loan burden and find out if you qualify through the Obama Student Loan Forgiveness Program.
Stick to a budget
You’ve been living the student life for a long time, and cheap ramen noodles can only be tasty for so long, but keeping that frugal attitude to life will help you stick to a budget and repay your loan faster. Create a budget each month for food, fun, rent and utilities and stick to it. When you are making your budget, try to trim down any excessive spending and put it aside for paying back your student loan debt. You can find out more ways of saving money here.
Deduct your student loan interest
Remember that any interest you pay can be deducted when tax season comes around. You may be able to reduce your taxable income by up to $2,500 on any interest you have paid for that tax year. Your lender should provide you with this information, but you can also request it from them or get it online if needed. It may not make a huge difference, but in the long run, every little saving will help!
Student Loan Debt is no joke and can tie up your finances for years to come, I hope these tips see you debt-free faster than you thought