Tips to Get Rid of Student Debt Faster
I'm pretty sure many of you are acquainted with the term student loans, in fact, currently 43 million Americans are. If so many people are struggling to pay off student loans, surely it is inevitable, but what are some ways we can reduce our student loans and pay them off as soon as possible? Keep reading if you want tips on how you can avoid paying off student loans for decades.
Look for Scholarships and Financial Aid:
This method might seem like an obvious one, but many people actually miss out on using these amazing resources. If you have a guidance counselor at your high school or a college and career consultant, it would be beneficial to start reaching out to these advisors your junior and senior year of high school. They have a plethora of information that could save you thousands of dollars on college tuition. Furthermore, contact your desired college or university's financial aid department and ask for information regarding financial aid. Any amount of aid is helpful, anything you can get should be utilized, even if it doesn’t seem like much.
Sign up for Automatic Debit:
Automatic debit is where a small portion of money will be automatically withdrawn from your bank account monthly, to pay off your student loans. This ensures that you are paying your loans in time and the full amount as well. Another benefit of automatic debit is that you can get a reduced interest.
Try to Pay Your Debts Immediately:
The final method is to pay your debts as soon as possible as this can help reduce interest rates. One way to accomplish this, is to pay more money towards your student loan debt monthly. In other words, pay more than the minimum monthly plan, as this will ensure that you pay your loans off faster and with lower interest rates.
If all fails, Seek Student Loan Forgiveness:
Loan forgiveness means you are relieved from having to pay some of your loans. There are different types of student loan forgiveness, typically it is due to your job. Having a government job or being a teacher can allow you to seek student loan forgiveness. There is also student loan discharge which is typically due to unforeseen circumstances, such as, disability, college closing during your enrollment, death, bankruptcy, etc. If all else fails, research at your local bank to see if you are eligible for student loan forgiveness.
Interesting Facts About Student Loan Debt:
Greatest amount of student loans is owned by those 35-49 years old
Americans currently owe over $1.6 trillion in student loans
Average student loan balance is over $35,000
Student loan debt percentages are growing exponentially everywhere
More than 3 million senior citizens are still paying off student debt
About 65% of high-debt student loan borrowers were surprised or misunderstood aspects of their loan or borrowing-process. Don’t be one of them.
