Going to college is a great way to set yourself up for a successful life as you get older, but it often comes with a hefty cost. The most common way to pay for expensive schooling is with student loans. Eliminating the financial burden associated with this debt is the only way you can start reaping the full benefits of your hard work. These are the four best ways to quickly pay off your student loans.
Try to Refinance
You may want to think about refinancing your student loans once you get out of school and obtain a stable job. Combining everything into one loan with a low-interest rate can potentially save you a lot of money in interest payments. With more of your money going towards the principal balance, you will be able to pay off your debt a lot sooner than expected.
Set Up Autopay
Autopay is a great tool to ensure you do not forget to pay your bills every month. Using this convenient feature on your student loans comes with another huge benefit. The vast majority of student loan issuers will lower your interest rate by .25% when using autopay. You are already making these payments every month, so you might as well save yourself some time and money.
Make Payments Every Two Weeks
A great financial hack to pay off loans faster and save money is by splitting your payment in half and making payments every two weeks. The interest on your loan is compounded daily, so the early payments will gradually save you a lot of money over the life of your loan. This method also results in you making an extra payment every year, disrupting your finances.
Pay More Than Minimum
There is no better way to get rid of student loans than by paying more than the minimum payment. You may have a hard time giving a loan company more money than required, but it is well worth it in the end. If you find yourself with a little extra money at the end of the month, then you should put half of it towards your student loans.