- 1 Make a budget and stick to it.
- 2 Make extra payments when you can.
- 3 Sign up for a graduated repayment plan.
- 4 Explore loan consolidation or refinancing.
- 5 Make use of student loan forgiveness programs.
- 6 Use a tax deduction or credit to reduce your monthly payments.
- 7 Rent out a room in your house.
- 8 Make use of student loan repayment assistance programs.
There are a lot of things to worry about when you’re a recent graduate, but one of the most pressing concerns is how to start paying off your student loans.
Failing to take action and to get your finances back on track may lead to future financial issues resulting in entering a consumer proposal and/or other debt help solutions.
Don’t put off repayment any longer than you have to. Here are 8 tips for quickly and effectively paying off your student loans.
Make a budget and stick to it.
Creating a budget is one of the best ways to get your finances in order, and it’s especially important when you’re trying to pay off debt. Figure out how much money you can realistically afford to put towards your student loans each month, and make sure to stick to that budget.
Make extra payments when you can.
If you have any extra money at the end of the month, put it towards your student loans. Even small payments can make a big difference in the long run.
Sign up for a graduated repayment plan.
A graduated repayment plan can help you slowly but surely pay off your loans by gradually increasing your monthly payments over time.
Explore loan consolidation or refinancing.
Consolidating or refinancing your student loans can sometimes make it easier to manage your debt and may even save you money in the long run.
Make use of student loan forgiveness programs.
If you’re employed in a qualifying public service job, you may be eligible for student loan forgiveness.
Use a tax deduction or credit to reduce your monthly payments.
If you’re itemizing your taxes, you may be able to deduct part of your student loan interest from your taxable income. And if you’re eligible, you can claim the American Opportunity Tax Credit worth up to $2,500 per year.
Rent out a room in your house.
If you have extra space in your house, renting it out can be a great way to make some extra money – and it can help you pay off your student loans faster.
Make use of student loan repayment assistance programs.
Many companies offer student loan repayment assistance programs to help employees pay off their loans. If you’re lucky enough to work for a company that offers this benefit, take advantage of it!
Congratulations on making it through college! Now that you’ve graduated, it’s time to start paying back your student debt. The good news is that there are plenty of ways to make a dent in your loan balance. We’ve put together a comprehensive guide on how to start paying back your student debt, including tips on budgeting, repayment schemes and more. So read on and get started today!