Student loan interest can be a huge burden on your finances. If you’re not careful, you could end up paying thousands of dollars in interest over the life of your loans. In this blog post, we will discuss seven ways that you can reduce the amount of interest you pay on your student loans. Follow these tips and you’ll be able to save yourself some money!
1. Get a job – working part-time can help you pay down your loans faster
This is a great way to free up some money in your budget. If you don’t have any income coming in, it’s going to be hard for you to pay off those loans quickly! Even if it is just working part-time or freelancing on the side of whatever else has been going on with you all day-job, moonlighting helps.
Working a little bit each month can make a big difference when it comes to your student loans. You’ll be able to pay down your debt faster and reduce the amount of interest you pay over the life of your loan.
2. Make extra payments when you can – even if it’s just $10 or $20 at a time
A few reasons why we recommend it: Extra money goes towards principle, not just interest.
It helps pay down your loans faster so there’s less time for interest to accrue on them! This means you’ll be saving money in the long run by paying off sooner and having more equity available when it comes time for buying another home or car etc.
It feels good. Seriously, it’s really satisfying to see that extra payment made each month and know you’re one step closer to being debt-free!
3. Sign up for automatic payments, which can sometimes qualify you for a lower interest rate
This is an option if you’re not sure how much extra money will be coming in each month and want to make sure that your payments are being made on time every single time.
It’s also great because it reduces the chance of missing a payment or losing track of when they need to go out!
Just be careful to keep an eye on your bank account in case there are any unexpected fluctuations that could lead to overdraft fees – those would completely defeat the purpose of automating your payments!
Some lenders also offer a lower interest rate if you sign up for automatic payments. This can be a great way to save some money on your loans!
4. Make bi-weekly payments instead of monthly payments
This is a great way to reduce the amount of interest you pay on your student loans. By making bi-weekly payments, you’ll be able to make 26 payments per year instead of 12. This will help you pay down your debt faster and save money on interest!
Just be sure that your lender is set up to accept bi-weekly payments.
If you’re not sure if they do or don’t, call them and ask! Many lenders are more than happy to work with their customers and make things easier for everyone involved.
5. Consolidate your loans into one manageable periodical payment
This is a great way to get your loans under control. Consolidating your student loan debt into one payment will make it easier for you to keep track of what needs paying when and how much money is going towards interest each month! You’ll also be able to save some money on the interest rate if you qualify for consolidation through an income-based repayment plan.
Just be sure that you’re fully aware of all the terms and conditions before consolidating your loans! This is a big decision and you don’t want to regret it later on.
6. Refinance your loans to get a lower interest rate
Refinancing means taking out a new loan to replace the old one. If you’ve been making on-time payments and have a good credit score, it’s possible to refinance your student loans for a lower interest rate. This could save you a lot of money in the long run!
Just be sure to do your research before refinancing and compare interest rates from different lenders. This is a big decision and you want to make sure you’re getting the best deal possible!
7. Take advantage of student loan forgiveness programs available in certain professions
There are a number of professions that offer student loan forgiveness programs. For example, if you work in public service for a certain number of years, your loans may be forgiven. Or if you’re a teacher, you may be able to have a portion of your loans forgiven.
Be sure to do your research and see if any of these programs are available to you! This can be a great way to have some or all of your loans forgiven after a certain period of time!
Interest rates on student loans can be a major headache, but there are ways to reduce the amount of interest you pay. In this blog post, we’ve outlined seven methods that can help you save money on your student loan payments. Stay tuned for more updates and tips, and feel free to reach out if you have any questions. We want to make sure that paying back your student loans is as painless as possible, so don’t hesitate to contact us!
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