Repaying Student Loans Faster - The Best Way!
Are you looking to start paying for your student loan but faster?
There are a number of strategies you could use but we'd like to recommend a few that we've used in the past.
Maybe you just wanted to get out of debt and looking to start by paying back the student loan, then you'll love this article.
Let's look at the best ways to repaying your student loans.
Best Ways To Repaying Student Loans Faster
1. Make Extra Payments Each Month
The best way to repaying the student loan faster is to pay more than the minimum monthly installment. By doing so, you're cutting down on the interest fee charged and the term for the loan.
You don't have to pay a huge amount just because you want to be done with this loan. Pay only what you can afford in that month.
Any additional income you may get during the month, push it over into your student loan account instead of spending the money on other things. There will be no penalties for paying more and prepaying your student loan.
2. Live within your means
Discipline is key for repaying your student loan.
Instead of a fancy lifestyle, try limiting your expenses and save money. You'll place whichever amount you've saved into your student loan account as additional for that month.
Draw up a budget and stick with it to avoid unnecessary spendings.
For any opportunity, you may get, try to push the funds to your student loan debt instead.
3. Refinance the student loan
Many often get terrified by the term "refinance", they think it comes with additional interest rates and charges on the loan.
But that's not the case, it just depends on how one refinances their debt.
Assuming that you have a permanent job now and with a good salary, you could opt for a higher installment with a lower interest rate. This will automatically decrease the loan repayment term and you'll end up paying the student loan faster.
4 Find a side job
You could potentially find a part-time or weekend job specifically for repaying the student loan.
Try the following for passive income aiming at paying the loan faster.
- Become a tutor/junior lecturer
- Start a blog/ Youtube channel
- Become a real estate agent assistant
Use our student loan calculator to see how fast you can pay your current student loan.